Snapshot img

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?

Request Free Vacation Rental Market Sample

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.

Get a glance at the market share of various regions. Download the PDF Sample

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?

For more insights on the market share of various regions, Request Free Sample

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

Data includes occupancy rates, average daily rates, and revenue per available rental.

The Short Term Vacation Rental Market is Segments by Accommodation Type (Apartments / Condominiums, Homes / Villas, and More), by Booking Channel (Online Travel Agencies, Direct Owner Websites, and More), by Guest Type (Leisure Travelers, Business and Bleisure Travelers, and More) and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The Market Forecasts are Provided in Terms of Value (USD)

Snapshot img

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.
Request Free Sample

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.

Request Free Sample

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.

Request Free Sample

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 synchroniz

Vacation Rental Statistics: Renting a place on vacation is what refreshes our minds. Every year, global tourists focusing on millennials spend around 180 billion dollars on travel every year. Therefore, the market is expected to rise at a CAGR of 5.3% between 2022 to 2030. Today, planning and booking a short or long vacation has become easy, you can simply ask ChatGPT your itinerary for the trip and book on the websites that provide the cheapest price rates for the accommodation. These Vacation Rental Statistics are including the most recent data focusing on global as well as American holiday rental markets. Don’t you think it's already summertime and you should be booking a vacation to the beach? Editor’s Choice Due to the remote working system, the duration of vacations has been increased by 68% resulting in 21 to 30-day stays. As of today, there are 31.3% of privately owned vacation rentals in the United States of America with 600,000 Americans using online platforms to rent out their places. As of 2022, around 138 million nights got booked for rental listing in the United States of America. From a worldwide perspective, revenue in the vacation rentals market is expected to reach $96.85 billion in 2023. The global comparison of Vacation Rental Statistics confirms that in 2023, most of the revenue in the market will be generated from the United States of America. Around the world, 700 million travellers used vacation rentals and more than 60 million Americans preferred to stay in holiday rentals in 2022. As of 2022, the primary booking method for vacation rentals in the United States of America was online methods (76%), and offline methods (24%). The demand for vacation rentals that allow pets have increased by 40%. Furthermore, Vacation Rental Statistics of online booking state that the percentage of the same will rise to 80% by 2026. 43% of the rental hosts manage their property by themselves whereas 25% of the properties are managed by professionals.

A merged dataset of the Hotels, Motels, B&Bs, and Boarding Houses and the Short-Term Rentals datasets.

The global housing rental platform market, currently valued at $41.94 billion (2025), is poised for significant growth. While the precise CAGR is unavailable, considering the rapid expansion of the short-term rental market fueled by platforms like Airbnb and the increasing preference for flexible living arrangements, a conservative estimate would place the annual growth rate between 10-15%. This growth is driven by several factors: the increasing popularity of vacation rentals, the rise of remote work fostering a demand for longer-term rentals in diverse locations, and technological advancements enhancing platform functionalities (e.g., streamlined booking processes, enhanced property management tools). Trends such as the integration of AI for personalized recommendations and the increasing adoption of mobile-first booking strategies further contribute to market expansion. However, the market faces challenges including regulatory hurdles related to licensing and taxation of short-term rentals, concerns about property security and guest safety, and competition from traditional real estate agencies. Market segmentation reveals substantial opportunities within both the type of platform (cloud-based solutions gaining traction for scalability and accessibility) and application (short-term rentals dominate the market share, although long-term lease platforms are seeing substantial growth driven by the remote work trend). Geographic distribution shows strong performance in North America and Europe, driven by established platforms and high adoption rates. However, significant untapped potential exists in Asia-Pacific and other emerging markets with increasing internet penetration and urbanization. The competitive landscape is dynamic, with established players like Airbnb and Booking.com facing competition from niche platforms catering to specific needs (e.g., long-term rentals, corporate housing). Future growth will depend on continued technological innovation, regulatory compliance, and effective strategies to address market challenges and tap into emerging markets.

The vacation rental market, valued at $86.12 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 25.79% from 2025 to 2033. This surge is driven by several factors. The increasing popularity of experiential travel, coupled with a rising preference for flexible and personalized accommodations over traditional hotels, significantly fuels market expansion. Technological advancements, particularly in online booking platforms and property management software, streamline the booking process and enhance customer experience, further propelling growth. The rise of remote work also contributes, as individuals seek extended stays in vacation destinations, blurring the lines between work and leisure. Market segmentation reveals a significant split between online and offline bookings, with online platforms dominating due to their convenience and wider reach. Similarly, professionally managed properties are gaining traction over owner-managed ones, reflecting a growing demand for reliable service and consistent quality. Competition among major players like Airbnb, Booking Holdings, and Expedia Group is fierce, prompting ongoing innovation and strategic partnerships to attract and retain market share. However, certain restraints impact market growth. Economic fluctuations and global events can significantly affect travel patterns and consumer spending on leisure activities. Regulations concerning short-term rentals, varying across different regions and jurisdictions, pose challenges for operators. Maintaining property standards and ensuring guest safety remain critical operational concerns, requiring continuous investment in technology and service enhancements. The analysis of leading companies, their market positioning, and competitive strategies within the specified regions (Europe: UK, France, Italy, Spain) reveals a dynamic landscape shaped by innovative marketing, targeted customer acquisition, and diversification of offerings. Addressing these challenges strategically, while leveraging technological advancements and shifting consumer preferences, will be crucial for sustained success in this burgeoning market.

The global vacation rental platform market is experiencing robust growth, driven by the increasing popularity of short-term rentals and the rising adoption of technology by property managers and owners. The market, estimated at $10 billion in 2025, is projected to expand at a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $30 billion by 2033. This expansion is fueled by several factors, including the increasing preference for unique travel experiences offered by vacation rentals, the rise of remote work and digital nomadism leading to extended stays, and the growing sophistication of property management software. The cloud-based segment dominates the market due to its scalability, accessibility, and cost-effectiveness, attracting both individual property owners and large rental businesses. North America currently holds the largest market share, followed by Europe, reflecting established tourism infrastructure and a high concentration of vacation rental properties in these regions. However, Asia-Pacific is projected to witness significant growth in the coming years due to rising disposable incomes and increased domestic tourism. Several challenges restrain market growth, including data security concerns related to guest information, regulatory hurdles imposed on short-term rentals in certain locations, and the high initial investment costs for some on-premise and installed platforms. Nonetheless, ongoing technological advancements such as AI-powered pricing optimization and automated guest communication tools are expected to overcome many of these limitations. The market is highly competitive, with numerous established players like Kigo, BookingSync, and Guesty vying for market share alongside emerging startups. The trend towards integrated platforms offering a comprehensive suite of services—from booking management to guest communication and revenue management—is expected to shape the market landscape in the years to come. The segmentation within the market based on application (rental property businesses vs. independent owners) and platform type (cloud, web-based, on-premise, mobile) reveals diverse needs and preferences which provide opportunities for specialized service providers.

The family vacation rental market is experiencing robust growth, driven by increasing disposable incomes, a preference for personalized travel experiences, and the rise of remote work enabling more flexible vacation schedules. The market size in 2025 is estimated at $50 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033. This signifies a substantial expansion to an estimated $95 billion by 2033. Key growth drivers include the increasing popularity of multi-generational family trips, the convenience and cost-effectiveness of vacation rentals compared to hotels, and the rise of platforms offering advanced search filters and curated experiences tailored to families. Trends such as sustainable tourism and the integration of smart home technology within rental properties further fuel market expansion. However, the market faces certain restraints. Fluctuations in travel and tourism spending due to economic downturns pose a risk. Regulations regarding short-term rentals, particularly concerning local licensing and tax compliance, are also impacting market growth in certain regions. Intense competition among established players like Vrbo, Airbnb, and Booking.com, along with emerging players offering specialized services, requires continuous innovation and differentiation to thrive. Successful companies focus on leveraging technology for streamlined booking, property management, and guest communication, and actively address environmental concerns through sustainable practices to gain a competitive edge. Effective segmentation targeting different family types and vacation preferences is critical for maximizing market share within this expanding sector.

Comprehensive Airbnb dataset for Miami Beach, 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.

Vacation Rental Platforms Market Outlook

The global vacation rental platforms market size was valued at approximately USD 87.09 billion in 2023 and is projected to reach around USD 146.33 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.9% during the forecast period. The market is experiencing substantial growth due to the increasing popularity of personalized travel experiences and a growing preference for vacation rentals over traditional hotel accommodations. This shift is largely attributed to the flexibility, privacy, and cost-effectiveness offered by vacation rental properties.

One of the key growth factors driving the vacation rental platforms market is the rising adoption of digital platforms for travel bookings. In recent years, there has been a significant surge in the utilization of web-based and mobile app-based platforms for making vacation rental reservations. These platforms provide users with a plethora of options, user reviews, and comprehensive descriptions, enhancing the overall booking experience. This technological advancement has facilitated seamless connectivity between property owners and potential renters, thereby boosting the market growth.

Another significant growth factor is the increasing disposable income and changing lifestyle preferences among consumers. As more individuals and families are willing to spend on travel and leisure activities, the demand for unique and personalized vacation experiences has surged. Vacation rentals offer a diverse range of accommodations, from luxurious villas to cozy apartments, catering to various customer preferences and budgets. Additionally, the growing trend of remote working has also contributed to the market's expansion, as people are seeking longer stays in vacation rentals to combine work and leisure.

Moreover, the rising trend of experiential travel and the growing interest in exploring offbeat destinations have further fueled the demand for vacation rentals. Unlike traditional hotels, vacation rental properties often provide unique and immersive experiences, allowing travelers to live like locals. This trend is particularly evident among millennial and Gen Z travelers who prioritize authentic and culturally enriching experiences. As a result, vacation rental platforms are continuously expanding their property listings to include a wide variety of options, from urban apartments to countryside cottages, meeting the diverse needs of modern travelers.

Regionally, the North American market holds a significant share in the vacation rental platforms market. This can be attributed to the high adoption rate of digital platforms, increased spending on travel and tourism, and the presence of key market players in the region. Europe is also a prominent market due to its rich cultural heritage, diverse tourist attractions, and the growing trend of short-term vacation rentals. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by the rising middle-class population, increasing internet penetration, and expanding tourism industry in countries like China and India.

Property Type Analysis

The property type segment of the vacation rental platforms market is broadly categorized into apartments, houses, villas, and others. Each category offers distinct advantages and caters to different customer needs and preferences. Apartments, for instance, are a popular choice among urban travelers and business professionals. These properties are often located in city centers, offering convenience and easy access to local amenities and attractions. The demand for apartments is particularly high in metropolitan areas where space is at a premium, making them a cost-effective option for short-term stays.

Houses form another significant segment within the vacation rental property types. These properties are generally preferred by families and larger groups seeking more space and privacy during their stay. Houses often come with multiple bedrooms, living areas, and outdoor spaces, making them ideal for longer vacations or gatherings. The flexibility of having a fully equipped kitchen and other home-like amenities adds to their appeal, allowing guests to have a more personalized and comfortable stay.

Villas, on the other hand, cater to the luxury segment of the market. These properties are typically located in scenic destinations such as beachf

The international housing rental platform market is experiencing robust growth, driven by increasing urbanization, globalization, and the rise of remote work. The market, valued at approximately $50 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the growing popularity of short-term and long-term rentals among both business travelers and students necessitates innovative and efficient platform solutions. Secondly, technological advancements, including user-friendly interfaces, robust search functionalities, and secure payment gateways, are enhancing user experience and driving market adoption. Thirdly, the increasing preference for flexible living arrangements, particularly among millennials and Gen Z, is further stimulating demand. The market segmentation reveals strong performance across various housing types, with apartments and houses dominating the market share. Long-term leases currently hold a larger segment than short-term leases, but the latter is experiencing significant growth, fueled by the rise of short-term business travel and tourism. Competition is intense, with established players like Airbnb and HousingAnywhere facing challenges from emerging niche players catering to specific demographics such as students (AmberStudent, Study Abroad Apartments) or corporate professionals (Blueground, Homelike). Geographical expansion continues, with North America and Europe currently dominating the market, while Asia-Pacific is poised for significant growth in the coming years. The competitive landscape is dynamic, requiring platforms to constantly innovate and adapt to evolving consumer preferences. Factors such as regulatory changes related to short-term rentals, data privacy concerns, and the need to effectively manage property listings and verification processes pose challenges for market players. Despite these challenges, the overall market outlook remains positive, with continued growth expected throughout the forecast period. The expansion of the market will be driven by technological innovations and the increasing demand for flexible housing solutions globally. Continued investment in user experience, enhanced security features, and strategic partnerships are crucial for platform providers to thrive in this competitive environment.

This dataset shows a listing of all short term rental properties actively registered with the City of Norfolk. A short term rental is either a vacation rental (not the owner’s primary residence) or homestay (the owner’s primary residence). It can be registered administratively with the City or by applying for a Conditional Use Permit (CUP). This dataset will be updated monthly.

The short-term vacation rental market, valued at $116.14 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 8.32% from 2025 to 2033. This expansion is fueled by several key drivers. The rising popularity of experiential travel, coupled with the increasing affordability and accessibility of online booking platforms like Airbnb, Booking.com, and Expedia, significantly contributes to market growth. Furthermore, the diversification of rental options, including professionally managed properties catering to a wider range of traveler preferences, and the growing adoption of vacation rentals by families and groups seeking more space and privacy compared to traditional hotels, are driving demand. The preference for unique and authentic travel experiences, often found in vacation rentals, also fuels this sector's growth. Geographic expansion into emerging markets and the ongoing technological advancements in property management systems are also contributing factors. However, the market faces certain challenges. Seasonal fluctuations in demand and potential regulatory hurdles related to licensing, taxation, and guest safety standards pose significant constraints. Competition from established hotel chains offering comparable amenities and pricing strategies necessitates continuous innovation and strategic adaptations by vacation rental providers. Fluctuations in global economic conditions and the impact of geopolitical events can also influence traveler spending and market growth. Nevertheless, the overall outlook remains positive, with the market poised for substantial expansion driven by sustained demand and evolving traveler preferences. The diverse range of booking methods (online and offline) and management styles (owner-managed and professionally managed) further contributes to the market's dynamism and adaptability. Key players are employing various competitive strategies, including strategic partnerships, technological upgrades, and brand building, to maintain a strong market presence and capture a larger share of this expanding market.

Comprehensive Airbnb dataset for Orlando, 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.

Comprehensive Airbnb dataset for Catania, Italy 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.

Comprehensive Airbnb dataset for New Orleans, 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.

Comprehensive Airbnb dataset for Cape Coral, 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.