Graph and download economic data for Rental Vacancy Rate in the United States (RRVRUSQ156N) from Q1 1956 to Q2 2025 about vacancy, rent, rate, and USA.

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Short Term Vacation Rental Market Size 2025-2029

The short term vacation rental market size is forecast to increase by USD 114.1 billion, at a CAGR of 13.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the expanding tourism industry and the increasing popularity of alternative accommodation options. Travelers seek flexibility, convenience, and unique experiences, making short term rentals an attractive choice over traditional and boutique hotels. Technological advancements further enhance the market's appeal, with digital platforms simplifying the booking process and offering personalized recommendations based on traveler preferences. However, the market faces challenges in ensuring consistent quality across vacation rental properties. The lack of standardization and regulation can lead to inconsistencies in the guest experience, potentially impacting customer satisfaction and brand reputation.
Addressing this challenge requires a commitment to quality assurance, from property maintenance and cleanliness to guest communication and support. Companies that prioritize these aspects and leverage technology to streamline operations will capitalize on the market's opportunities while navigating challenges effectively.

What will be the Size of the Short Term Vacation Rental Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The short-term rental market continues to evolve, with dynamic pricing strategies shaping the landscape. Property managers employ guest management systems to optimize operations, while digital marketing and channel management tools expand reach. Email marketing and social media platforms engage guests, driving direct bookings. Property valuation relies on data analysis, including occupancy rates and revenue management. Seasonal demand influences pricing, with peak seasons offering higher yields. Energy efficiency and green initiatives attract eco-conscious travelers, while luxury rentals cater to affluent guests.

Amenities, from smart home technology to concierge services, enhance the guest experience. Calendar synchronization ensures seamless booking and maintenance services maintain property condition. Legal compliance remains crucial, with security systems and yield management tools addressing safety and revenue optimization. Budget rentals and cabin rentals cater to diverse markets, expanding the market's reach. Overall, the short-term rental market's continuous evolution reflects the industry's adaptability and innovation.

How is this Short Term Vacation Rental Industry segmented?

The short term vacation rental industry 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.

Mode Of Booking

  Offline
  Online


Management

  Managed by owners
  Professionally managed


Type

  Apartments and condominiums
  Villas and luxury homes
  Cottages and cabins
  Resorts and bungalows
  Others


Location

  Urban
  Rural
  Coastal
  Mountain


Traveler Type

  Leisure Travelers
  Business Travelers
  Families


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Mode Of Booking Insights

The offline segment is estimated to witness significant growth during the forecast period.

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The Offline segment was valued at USD 87.10 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

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

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The European the market is experiencing growth due to the rising demand for travel and unique experiences. Travelers seek more personalized accommodations, leading to the popularity of short term rentals over traditional hotels. Weekend getaways and city breaks align with the trend of experiential travel, further fueling market growth. Short term rentals offer flexible options and can be cost-effective for families or groups. Pricing strategies, such as dynamic pricing and seasonal demand, influence rental income. Guest management systems, email marketing, and channel management help optimize bookings. Operating expenses include cleaning services, maintenance, and property management software. Energy efficiency and green initiatives are essential property amenities.

Smart home technology enhances the guest experience, while calendar synchronization and inve

Short-Term Rental Platforms Market Outlook

The global short-term rental platforms market size is anticipated to grow significantly from USD 125 billion in 2023 to USD 215 billion by 2032, at a CAGR of 6.5%. The rising demand for travel and tourism coupled with the increasing preference for personalized and affordable accommodation options are key growth drivers for this market. Additionally, the proliferation of internet connectivity and smartphone usage has facilitated easier access to short-term rental platforms, further propelling market growth.

The growing popularity of experiential travel is a significant factor contributing to the expansion of the short-term rental platforms market. Travelers increasingly seek unique and personalized experiences over traditional hotel stays, driving demand for diverse accommodation options. Platforms offering a range of properties, from apartments and houses to villas and unconventional spaces, cater to this evolving consumer preference. Furthermore, the increased adoption of remote working has enabled individuals to travel more frequently, enhancing the scope and demand for short-term rentals.

Technological advancements play a crucial role in the market's growth. The integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics has revolutionized the way short-term rental platforms operate. These technologies enable platforms to offer more personalized recommendations, streamline booking processes, and improve overall user experience. Additionally, the implementation of dynamic pricing algorithms helps property owners optimize their revenue, making short-term rentals a more lucrative option compared to traditional long-term leases.

Another driving factor is the growing trend of sustainable and eco-friendly travel. Consumers are increasingly conscious of their environmental impact and prefer accommodations that align with their sustainability values. Short-term rental platforms often feature properties that incorporate eco-friendly practices, such as energy-efficient appliances and sustainable materials, attracting environmentally-conscious travelers. This trend not only boosts market growth but also encourages property owners to adopt greener practices, contributing to broader environmental goals.

Regionally, North America leads the short-term rental platforms market, followed by Europe and the Asia Pacific. The high disposable income and strong tourism infrastructure in North America, particularly in the United States and Canada, support the market's dominance. Europe benefits from its rich cultural heritage and diverse tourist attractions, making it a popular destination for short-term rentals. The Asia Pacific region is expected to witness the highest growth rate, driven by increasing tourism, rising urbanization, and the growing middle-class population. Countries like China, India, and Japan are emerging as significant contributors to market growth in this region.

Property Type Analysis

The short-term rental platforms market is segmented by property type into apartments, houses, villas, and others. Apartments constitute a significant portion of the market due to their availability and affordability. Urban areas, in particular, see a high demand for apartment rentals as they offer convenient access to city attractions and business centers. Additionally, apartments are often preferred by solo travelers and small groups due to their cost-effectiveness and compact living space. The growth of urban tourism and business travel further cements the dominance of this segment.

Houses also represent a substantial segment in the short-term rental market. Families and larger groups often opt for houses due to the additional space and privacy they offer. Houses typically provide multiple bedrooms, fully-equipped kitchens, and outdoor areas, making them ideal for extended stays and family vacations. The trend of "staycations" and the desire for home-like comfort during travel contribute to the steady demand for house rentals. This segment is also benefiting from the growing popularity of suburban and rural tourism, where houses are more prevalent.

Villas cater to the luxury segment of the market, attracting affluent travelers seeking premium accommodation experiences. Villas offer high-end amenities such as private pools, expansive living areas, and picturesque locations, making them a popular choice for special occasions and high-net-worth individuals. Although villas represent a smaller market share compared to ap

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Mid-Term Rental Market Outlook

According to our latest research, the global mid-term rental market size reached USD 74.8 billion in 2024, with a robust compound annual growth rate (CAGR) of 7.1% projected from 2025 to 2033. By the end of 2033, the market is forecasted to attain a value of USD 139.5 billion. The market’s expansion is driven by the increasing demand for flexible and affordable housing solutions, particularly among mobile professionals, students, and expatriates, as well as the digital transformation of the real estate sector.

A significant growth factor for the mid-term rental market is the evolving nature of work and study, with more individuals seeking temporary housing solutions due to remote work, project-based assignments, and academic programs. The rise of digital nomadism and cross-border employment opportunities has led to a surge in demand for rentals spanning one to twelve months. Corporations are increasingly leveraging mid-term rentals to accommodate relocating employees, project teams, and consultants, while educational institutions are partnering with property providers to offer flexible housing to students and visiting faculty. These trends are further amplified by the global mobility of talent and the need for cost-effective, hassle-free accommodation options.

Another major driver is the technological transformation within the real estate industry. The proliferation of online booking platforms has revolutionized the way mid-term rentals are marketed, discovered, and managed. Platforms offering seamless search, virtual tours, secure payment gateways, and transparent reviews have significantly enhanced user experience and trust. Property owners, managers, and agencies are leveraging data analytics and digital tools to optimize occupancy rates, pricing strategies, and customer engagement. This digital shift has also enabled greater market penetration in emerging economies, where tech-savvy younger populations are increasingly opting for mid-term rentals over traditional long-term leases or short-term stays.

Urbanization and shifting lifestyle preferences are further propelling the mid-term rental market. In densely populated cities, high real estate prices and limited availability of long-term rentals have made mid-term options attractive for a wide demographic, including young professionals, students, and families in transition. The growing appeal of flexible living arrangements, coupled with the desire for fully furnished and serviced accommodations, has spurred innovation in property offerings. Developers and investors are responding by converting existing properties into mid-term rental units, integrating amenities such as coworking spaces, gyms, and communal areas to cater to the evolving needs of tenants.

From a regional perspective, North America and Europe continue to dominate the mid-term rental market, accounting for over 60% of the global share in 2024. However, Asia Pacific is emerging as the fastest-growing region, with a CAGR expected to surpass 8.5% during the forecast period. This growth is fueled by rapid urbanization, expanding expatriate communities, and increasing cross-border academic and professional exchanges. Meanwhile, Latin America and the Middle East & Africa are witnessing steady growth as digital platforms break down barriers to entry and local governments introduce supportive policies to attract international talent and investment.

Property Type Analysis

The mid-term rental market’s segmentation by property type reveals a dynamic landscape shaped by diverse tenant preferences and evolving urban infrastructure. Apartments remain the most popular choice, capturing the largest market share due to their availability, affordability, and adaptability to various tenant profiles. Apartments appeal to both individuals and corporate clients seeking furnished, centrally located accommodations with amenities such as security, maintenance, and easy access to public transport. The adaptability of apartments to short to medium durations makes them a preferred option for students, professionals, and expatriates alike, driving consistent demand across metropolitan areas.

Houses occupy a significant niche within the mid-term rental market, particularly among families and groups requiring more space, privacy, and a homelike environment. Ho

The vacancy rate for rental apartments in the United States fell to about *** percent in October 2021, followed by a steady increase until 2025. In January that year, the vacancy index stood at **** percent.

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Comprehensive Airbnb dataset for New York, United States providing detailed vacation rental analytics including property listings, pricing trends, host information, review sentiment analysis, and occupancy rates for short-term rental market intelligence and investment research.

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends

Historical market performance data including occupancy rates, average daily rates, and revenue trends