Revenue for apartment lessors has expanded through the end of 2025. Apartment lessors collect rental income from rental properties, where market forces largely determine their rates. The supply of apartment rentals has grown slower than demand, which has elevated rental rates for lessors' benefit. As the Federal Reserve hiked interest rates 11 times between March 2022 and January 2024, homeownership was pushed beyond the reach of many, resulting in a tighter supply and increased demand for rental properties. Despite three interest rate cuts in 2024, mortgage rates have remained high, further encouraging consumers to rent. Revenue has climbed at a CAGR of 2.9% over the past five years and is expected to reach $299.7 billion by the end of 2025. This includes an anticipated 3.0% gain in 2025 alone. The increasing unaffordability of housing is caused by the steady climb of mortgage rates and high prices maintained by a low supply. Supply has been held down as buyers who locked in low rates stay put, and investment groups hold a strategic number of their properties empty as investments. Industry profit has remained elevated because of solid demand for apartment rentals. Through the end of 2030, the apartment rental industry's future performance is likely to be shaped by varying factors. The apartment supply in the US, which hit a record in 2024, is expected to taper off, which will, in turn, push rental prices and occupancy rates up to the lessors' benefit. Other factors, such as further interest rate cuts, decreasing financial barriers to homeownership, and a high rate of urbanization, will also significantly impact the industry. Wth approximately 80.7% of the US population living in urban areas, demand for apartment rentals will strengthen, although rising rental prices could force potential renters to cheaper suburbs. Demand will continue to outpace supply growth, prompting a climb in revenue. Revenue is expected to swell at a CAGR of 2.8% over the next five years, reaching an estimated $344.3 billion in 2030.

The apartment rental market in the United States has been stagnating since 2019, after increasing year-on-year for several years. In 2022, the estimated market size of apartment rental was ***** billion U.S. dollars, down from ***** billion U.S. dollars in 2021. In 2023, the market is forecast to further contract by one percent, reaching ***** billion U.S. dollars.

Market Size statistics on the Apartment Rental industry in the US

Displacement risk indicator classifying census tracts according to apartment rent prices in census tracts. We classify apartment rent along two dimensions:The median rents within the census tract for the specified year, balancing between nominal rental price and rental price per square foot.The change in median rent price (again balanced between nominal rent price and price per square foot) from the previous year.Note: Median rent calculations include market-rate and mixed-income multifamily apartment properties with 5 or more rental units in Seattle, excluding special types like student, senior, corporate or military housing.Source: Data from CoStar Group, www.costar.com, prepared by City of Seattle, Office of Planning and Community Development

The online apartment rental services industry is experiencing significant growth because of the booming apartment supply, with over half a million new rental units completed in 2024. Major cities like New York, Dallas and Austin are leading the way in this surge, causing an influx of new, predominantly high-end rental units. As a result, there is increased competition among property managers and a need for more effective digital marketing strategies to reach potential renters. This accelerated growth is predominantly benefiting online rental services, which have seen a climb in listings that, in turn, drive more traffic as renters seek opportunities and deals in markets with slowing rent growth. Overall, industry-wide revenue has climbed at a CAGR of 7.7% to $928.1 million through the end of 2025, including an 8.6% gain in 2025 alone, when profit is expected to reach 23.8%. Leading organizations, such as Zillow and Redfin, are taking advantage of this trend by forming partnerships to expand their listing networks and reach. The consolidation of these digital platforms means renters can access a broader range of apartment listings, streamlining their search process and increasing market transparency. Meanwhile, property marketers are presented with simplified operations and increased marketing leads because of enhanced exposure across major rental platforms. However, smaller markets and affordable housing are not receiving the same benefits, signaling a need for more targeted digital marketing and search tools. The online apartment rental services industry is set to face a shift from oversupply to scarcity by the end of 2030. As apartment construction slows because of high borrowing costs, tighter lending standards and rising project costs, there will be a greater demand for platforms that can help landlords maximize occupancy and optimize rents in a tightening market. To meet this demand, innovations in technology, such as predictive analytics, dynamic pricing and personalized renter experiences, will become a necessity. Amid these changes, the industry is also likely to see a gain in demand for single-family rentals, creating new opportunities for digital platforms to expand their offerings and capture a larger market share. Industry revenue will strengthen at a CAGR of 9.0% to $1.4 billion in 2030.

The net operating income comprised 63 percent of the revenues of the conventional apartment rental market in the United States as of August 2022. During the same period, almost 57 percent of leases were renewed, with renewal leases achieving on average 11 percent increase in rental rates.

Revenue for Canadian apartment lessors has gained through the end of 2025. Apartment lessors collect rental income from rental properties, so market forces largely determine their rates. The supply of apartment rentals has grown slower than demand, which has elevated rental rates for lessors' benefit. Favourable economic conditions and demographic trends during most of the period have driven growth in demand. In 2020, the spread of COVID-19 lessened demand for apartment rentals, but the nature of apartment leases prevented a dip in revenue until 2021. Revenue has climbed since 2022 as higher prices and strong demand have fuelled a robust rental market. Revenue has climbed at a CAGR of 1.7% over the past five years and will reach $67.6 billion through the end of 2025. This includes a 1.6% swell in 2025 alone. Climbing vacancies fueled by a historic increase in rental supply will limit rent growth in 2025. The urban population in Canada has continued to expand, fuelling demand for housing in recent years. The supply of apartment rental units has lagged behind demand growth, reflected in low vacancy rates across Canada. Major urban centres have had especially low vacancy rates in recent years. Disposable income has also grown despite significant economic volatility. This has given individuals more funds to cover living expenses, which has enabled lessors to raise rental rates. Despite skyrocketing rental prices, profit has declined because of rising operating costs and property taxes. Favourable macroeconomic conditions are expected to fuel demand for apartment rentals moving forward. Per capita disposable income will climb while vacancy rates remain low. Furthermore, immigration and urbanization growth will fuel rent growth in major cities, benefiting apartment rental providers. Demand will continue to outpace supply growth, prompting a revenue gain. Revenue will expand at a CAGR of 1.3% through the end of 2030, reaching $71.9 billion in 2030.

Housing Rental Service Market Outlook

The global housing rental service market size was valued at $1.56 trillion in 2023 and is projected to reach $2.56 trillion by 2032, growing at a compound annual growth rate (CAGR) of 5.6% during the forecast period. This growth is primarily driven by increasing urbanization, rising population density in metropolitan areas, and the shift in consumer preference towards rental accommodations over homeownership. The demand for housing rental services is also fueled by the flexibility and cost-effectiveness they offer compared to buying properties, particularly in economically volatile environments.

One of the primary growth factors influencing the housing rental service market is the rapid urbanization happening globally. As more people move to urban centers in search of better employment opportunities, the demand for rental housing rises significantly. Urban areas often come with high property prices, making homeownership less feasible for many individuals. Consequently, the rental market becomes an attractive alternative, providing more affordable and flexible living arrangements. Additionally, the increasing number of single-person households and young professionals seeking mobility and convenience further propels the market.

Another significant driver is the growing popularity of the sharing economy, which has revolutionized the way people perceive and utilize property. Platforms like Airbnb have normalized short-term rentals, contributing to the market's growth. These platforms offer homeowners the opportunity to monetize vacant properties and provide renters with cost-effective and flexible options. This shift towards embracing short-term rentals is also supported by advancements in technology, which make it easier for users to find, book, and manage rental properties online, thus enhancing the overall user experience.

Economic factors also play a crucial role in the growth of the housing rental service market. In regions with high costs of living and economic uncertainty, renting becomes a more viable option compared to purchasing a home. Renting allows for better financial flexibility, avoiding the long-term commitment and financial burden that comes with a mortgage. Moreover, the trend towards remote work, accelerated by the COVID-19 pandemic, has led to changes in housing preferences, where people are no longer constrained to live near their workplaces, allowing them to choose rental properties that better suit their lifestyle and budget.

From a regional perspective, North America and Europe are major markets for housing rental services due to the high rate of urbanization and a substantial population of expatriates and young professionals. The Asia Pacific region is anticipated to witness significant growth, driven by rapid urbanization in countries like China and India. The Middle East & Africa and Latin America are also expected to see moderate growth, supported by improving economic conditions and increased foreign investments in real estate. These regional dynamics highlight the varied but robust demand for rental housing services worldwide.

The luxury rental market is an intriguing segment within the broader housing rental service market. This niche caters to high-net-worth individuals and expatriates who seek premium accommodations with top-tier amenities and services. Luxury rentals often include features such as concierge services, private gyms, and high-end finishes, appealing to those who prioritize comfort and exclusivity. In urban centers, luxury apartments and penthouses are particularly popular, offering breathtaking views and proximity to cultural and business hubs. The demand for luxury rentals is also driven by the increasing number of affluent individuals and the global mobility of professionals who prefer renting over purchasing properties in foreign locations.

Type Analysis

The housing rental service market can be segmented by type into short-term rentals and long-term rentals. Short-term rentals, including vacation rentals and corporate housing, have gained significant traction due to the popularity of platforms like Airbnb and VRBO. These rentals are appealing to travelers and business professionals seeking temporary accommodation without the commitment of a long-term lease. The flexibility and convenience provided by short-term rentals, coupled with the ability to experience different neighborhoods and properties, have made them an attractive option for many consumers.&

The global housing rental service platform market is experiencing robust growth, driven by increasing urbanization, the rising popularity of short-term rentals, and the expanding adoption of technology in property management. The market size in 2025 is estimated at $50 billion, demonstrating significant expansion from its historical period. This growth is projected to continue at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching an estimated market value of $150 billion by 2033. Key drivers include the convenience and efficiency offered by online platforms, enabling property owners to manage their listings and tenants to search and book properties easily. Furthermore, the integration of advanced features such as virtual tours, online payment processing, and sophisticated search filters enhances user experience and drives market expansion. Emerging trends, such as the integration of AI for property pricing and tenant screening, along with the rise of subscription-based rental models, are further fueling market growth. However, regulatory challenges related to data privacy and fair housing practices, as well as competition from traditional real estate agencies, pose some restraints on market growth. The competitive landscape is highly dynamic, with a mix of established players like Zillow, Trulia, and RealPage, and innovative startups such as Rentberry and Spotahome vying for market share. Geographic expansion into emerging markets, particularly in Asia and Latin America, presents significant opportunities for growth. Companies are increasingly focusing on enhancing their platforms’ functionalities by integrating advanced technologies like AI and machine learning to improve tenant screening, property valuation, and risk management. Differentiation strategies, such as offering specialized services catering to specific demographics or property types, are also becoming increasingly crucial for success in this competitive market. The overall outlook remains positive, with substantial growth potential driven by technological advancements and evolving consumer preferences.

Number of Businesses statistics on the Apartment Rental industry in United States

In 2024, there were approximately **** million housing units occupied by renters in the United States. This number has been gradually increasing since 2010 as part of a long-term upward swing since 1975. Meanwhile, the number of unoccupied rental housing units has followed a downward trend, suggesting a growing demand and supply failing to catch up. Why are rental homes in such high demand? This high demand for rental homes is related to the shortage of affordable housing. Climbing the property ladder for renters is not always easy, as it requires prospective homebuyers to save up for a down payment and qualify for a mortgage. In many metros, the median household income is insufficient to qualify for the median-priced home. How many owner occupied homes are there in the U.S.? In 2023, there were over ** million owner occupied homes. Owner occupied housing is when the person who owns a property – either outright or through a mortgage – also resides in the property. Excluded are therefore rental properties, employer-provided housing and social housing.

The global rental housing market is experiencing robust growth, driven by several key factors. Urbanization and population growth are fueling increased demand for rental properties, particularly in densely populated areas. Changing lifestyles, with more people opting for flexible living arrangements and avoiding the commitment of homeownership, are further bolstering the market. Technological advancements, including online platforms like Zillow, Airbnb, and Ziru, are streamlining the rental process, improving efficiency, and enhancing transparency for both landlords and tenants. Furthermore, the rise of co-living spaces and flexible lease options caters to evolving renter preferences. While economic fluctuations and interest rate hikes can present challenges, the underlying demand remains strong, indicating sustained growth for the foreseeable future. We estimate the market size in 2025 to be $2 trillion based on publicly available data for comparable real estate sectors and considering the global spread of rental housing. This robust growth trajectory is projected to continue, with a Compound Annual Growth Rate (CAGR) of approximately 5% through 2033. However, challenges exist within the rental housing market. Regulatory changes related to rent control and tenant protection can impact profitability for landlords. Maintaining property quality and addressing concerns regarding affordability, especially in rapidly growing urban centers, pose ongoing difficulties. Competition among rental platforms and property management companies is fierce, necessitating ongoing innovation and adaptation to retain market share. Despite these headwinds, the long-term outlook remains positive. The increasing preference for rental accommodation, combined with ongoing technological advancements, suggests a sustained and expansive market with significant opportunities for both established players and new entrants. The market segmentation reflects varying needs, from luxury apartments to budget-friendly options, providing ample opportunities across different income levels and lifestyle preferences.

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Vacation Rental Market Size 2025-2029

The vacation rental market size is estimated to increase by USD 22 billion, growing at a CAGR of 4.1% between 2024 and 2029. The industry's expansion and the rising popularity of short-term vacation rentals are driving substantial market growth. The vacation rental market is experiencing significant growth, driven by the expanding tourism industry and the increasing preference for short-term stays in vacation rental properties. This trend is further fueled by the convenience of instant booking features, which allow travelers to secure their accommodations with ease. However, the market also faces challenges, including the risks associated with fraudulent vacation rental listings. These risks can lead to financial losses and safety concerns for travelers, making it crucial for market participants to prioritize security measures and transparency. Overall, the vacation rental market is poised for continued growth, with opportunities for innovation and improvement in areas such as customer experience, safety, and technology integration. The market's future looks promising, with opportunities for innovation in cultural tourism and enhancements in areas like customer experience, safety, and technology integration.

What will be the size of Market during the Forecast Period?

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Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019 - 2023 for the following segments.

Management

  Managed by owners
  Professionally managed


Method

  Offline
  Online


Type

  Home
  Apartments
  Resort/Condominium
  Others


Geography

  Europe

    UK
    France
    Italy


  North America

    Canada
    US


  APAC

    China
    India
    Japan


  Middle East and Africa

    South Africa


  South America

    Brazil

Which is the largest segment driving market growth?

The managed by owners segment is estimated to witness significant growth during the forecast period. Vacation rentals have emerged as a significant segment in the tourism industry, with B2C enterprises facilitating bookings through various sales channels. According to industry associations and third-party studies, vacation rentals account for a substantial portion of consumer spending on accommodation and features such as spas, with tourism spending projected to increase due to rising internet and device penetration. Forecasting techniques, such as time series forecasts and stationarity of data analysis, are used to estimate short-term trends in the vacation rental market.

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The managed by owners segment accounted for USD 48.5 billion in 2019 and showed a gradual increase during the forecast period. These estimates consider factors like rental homes in the accommodation segment, resorts segment, and booking modes, including offline and online. Market players invest in acquisitions and mergers to expand their offerings, with trends favoring short-term rentals and eco-friendly vacation rentals. Statistical offices and trade associations provide price indices to help owners set rental rates based on local market conditions, ensuring flexibility and competitiveness. Consumer preferences for privacy, space, and flexibility continue to drive demand for vacation rentals in the travel industry.

The vacation rental market has grown significantly with the rise of short-term rentals and vacation homes, supported by online booking platforms and property management solutions. Luxury vacation rentals cater to high-end travelers seeking unique travel experiences. HomeAway and Airbnb alternatives have expanded options for tourists, while local tourism benefits from the convenience of digital travel solutions. These trends are shaping the future of the vacation rental market, driving growth and innovation.

Which region is leading the market?

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Europe is estimated to contribute 32% to the growth of the global market during the market forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The European vacation rental market is experiencing significant growth due to the rising travel trend and the preference for unique experiences over traditional accommodations. Travelers seek more personalized and cost-effective options, leading to the increasing popularity of vacation rentals such as hostels and camping sites. Ancient ruins and historical sites add to Europe's allure, making vacation rentals an attractive choice for tourists. However, the availability of properties and restrictions on ren

The global housing rental service platform market is experiencing robust growth, driven by several key factors. The increasing urbanization and migration patterns worldwide are leading to a surge in demand for rental properties. Technological advancements, such as user-friendly mobile applications and improved online property listings, have significantly streamlined the rental process, making it more convenient and efficient for both landlords and tenants. Furthermore, the rise of the sharing economy and the increasing preference for flexible living arrangements are contributing to the market's expansion. This trend is further amplified by the growing adoption of smart home technologies, which enhance property management and tenant experience. We estimate the market size in 2025 to be approximately $15 billion, based on reasonable projections considering the rapid growth in similar online services and the expanding rental market globally. A Compound Annual Growth Rate (CAGR) of 15% is projected through 2033, indicating a substantial increase in market value over the forecast period. However, the market faces certain restraints. Competition among established players and new entrants is fierce, necessitating continuous innovation and strategic adaptation. Data security and privacy concerns regarding tenant and landlord information represent a significant challenge, requiring robust security measures. Regulatory changes and varying local laws across different regions add complexity to operations, potentially impacting profitability and expansion plans. Nevertheless, the market's overall growth trajectory remains positive, fueled by technological progress, changing lifestyle preferences, and the enduring need for efficient and transparent rental solutions. Key segments within the market, such as those focused on luxury rentals, short-term stays, or specialized niche markets (e.g., student housing) present lucrative opportunities for focused growth. Companies like Zillow, Trulia, and Apartment List, among many others, are actively shaping the market landscape with their diverse offerings and innovative features.

The long-term rental apartment market is experiencing robust growth, driven by several key factors. Increasing urbanization and a global shift towards rental preferences, particularly among millennials and Gen Z, are significantly boosting demand. The convenience and flexibility offered by rental apartments, coupled with rising homeownership costs in many regions, are major contributors to this trend. Furthermore, the expansion of the corporate tenant segment, fueled by the growth of remote work and the need for flexible housing solutions for transient employees, is further accelerating market expansion. Technological advancements, such as online property management platforms and smart home integrations, are also enhancing the tenant experience and driving market efficiency. The market is segmented by acquisition method (acquire, self-build, lease) and tenant type (individual, corporate), allowing for nuanced market analysis and targeted investment strategies. While construction costs and regulatory hurdles represent potential restraints, the overall market outlook remains positive, indicating substantial growth potential in the coming years. The market is geographically diverse, with significant opportunities across North America, Europe, and Asia-Pacific. However, growth rates vary considerably depending on regional economic conditions, local regulations, and the existing housing stock. For instance, rapidly developing economies in Asia are experiencing particularly strong growth, driven by burgeoning urban populations and rising disposable incomes. Meanwhile, mature markets in North America and Europe are witnessing more moderate but sustained growth, largely fueled by demographic shifts and evolving lifestyle preferences. Competitive landscapes vary by region, with established players and new entrants vying for market share. The ongoing evolution of the market necessitates a dynamic approach from investors and developers, focusing on innovation, adaptability, and a deep understanding of local market dynamics. A strategic focus on sustainable development and environmentally conscious practices will become increasingly crucial in attracting both tenants and investors.

Discover the latest insights from Market Research Intellect's Centralized Long-Term Rental Apartment Rental Service Market Report, valued at USD 45 billion in 2024, with significant growth projected to USD 75 billion by 2033 at a CAGR of 7.3% (2026-2033).

The centralized long-term rental apartment market is experiencing robust growth, driven by increasing urbanization, the rise of the gig economy (affecting migrant workers and international students), and a growing preference for convenient, managed rental solutions. This market, estimated at $150 billion globally in 2025, is projected to experience a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated $275 billion by 2033. Key growth drivers include the expanding populations of transient professionals (migrant workers and international students) seeking streamlined rental experiences and property management companies aiming for improved efficiency and economies of scale through centralized operations. The market is segmented by application (migrant workers, international students, others) and model (asset-heavy, asset-light). Asset-light models, characterized by partnerships and management contracts, are gaining traction due to lower upfront capital requirements and increased scalability. Geographic expansion, particularly in rapidly developing Asian markets like China and India, presents significant growth opportunities. However, challenges remain, including regulatory hurdles in some regions and competition from traditional, decentralized rental models. The success of major players such as Greystar, Lincoln Property Company, and AvalonBay Communities in the US, and counterparts like Vanke Group and LIANJIA in China, highlights the effectiveness of centralized management strategies. Their ability to leverage technology for streamlined operations, efficient marketing, and improved tenant satisfaction contributes to their market dominance. Future growth will depend on continued technological innovation, strategic partnerships, expansion into underserved markets, and adapting to evolving tenant preferences. The increasing adoption of smart home technologies and data analytics within centralized platforms will further enhance the tenant experience and operational efficiency, driving further market expansion. The asset-light model's flexibility and lower risk profile makes it attractive for investors looking to capitalize on this expanding market. However, regulatory changes impacting rental agreements and property management practices could present challenges for growth in specific markets.

Global Real Estate Rental market size is expected to reach $3877.45 billion by 2029 at 7.4%, segmented as by type, residential buildings and dwellings rental services, non-residential buildings rental services

Number of Businesses statistics on the Online Apartment Rental Services industry in the US

The global centralized long-term rental apartment market is projected to reach a value of USD XX million by 2033, expanding at a CAGR of XX% over the forecast period (2025-2033). The growth of this market can be attributed to the rising urbanization, increasing disposable income, and changing lifestyle preferences, particularly among millennials and Gen Z. The market is expected to have a substantial impact on the real estate industry, as well as on the lives of renters and investors. Key market drivers include the increasing demand for flexible and affordable housing, the growing number of international students and migrant workers, and the advancements in technology. Additionally, government initiatives to support affordable housing and the rising popularity of co-living and shared living spaces are expected to further drive market growth. The market is segmented into two main types: asset-heavy model and asset-light model. The asset-heavy model involves owning and managing physical rental properties, while the asset-light model focuses on providing technology and services to connect renters with property owners. The market is also segmented into three main applications: migrant workers, international students, and other.