Short-Term Vacation Rental Market Report 2026

Short-Term Vacation Rental Market Overview

• Short-Term Vacation Rental market size has reached to $131.03 billion in 2025 • Expected to grow to $199 billion in 2030 at a compound annual growth rate (CAGR) of 8.7% • Growth Driver: Rising Number Of Travelers Fuels Growth In Short-Term Vacation Rental Market • Market Trend: Advancements In Property Management Solutions Enhances Efficiency For Short-Term Rental Hosts • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Short-Term Vacation Rental Market?

Short-term vacation rental refers to the temporary leasing of a furnished property, such as a house or apartment, for a short duration, typically ranging from a few days to a few weeks. This type of rental provides travelers with an alternative to hotels, offering more space, amenities, and a home-like experience. The main types of accommodation in short-term vacation rental are home, apartments, resorts or condominium, and other accommodation types. A home refers to a private residence rented out to guests for temporary stays, providing a comfortable and familiar living environment for vacationers. Booking modes include online or platform-based and offline options and are managed by the owners and professional management.

What Is The Short-Term Vacation Rental Market Growth Forecast?

The short-term vacation rental market size is expected to see strong growth in the next few years. It will grow to $199 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing adoption of dynamic pricing tools, rising demand for contactless guest experiences, expansion of remote work-driven travel, growing focus on regulatory compliance platforms, increasing investments in property management technology. Major trends in the forecast period include increasing adoption of platform-based booking systems, rising demand for unique and experiential stays, growing preference for professionally managed properties, expansion of smart home integration in rentals, enhanced focus on sustainable accommodation practices.

Global Short-Term Vacation Rental Market Segmentation

1) By Accommodation Type: Home, Apartments 2) By Booking Mode: Online Or Platform-Based, Offline 3) By Management: Managed By Owners, Professionally Managed Subsegments: 1) By Home: Single-Family Homes, Villas And Private Homes, Luxury Homes, Cottages And Cabins 2) By Apartments: Entire Apartments, Studio Apartments, Lofts

What Is The Driver Of The Short-Term Vacation Rental Market?

The increasing number of travelers is expected to propel the growth of the short-term vacation rental market going forward. Travelers are people who move from one place to another for purposes such as leisure, work, education, or personal reasons, either for a short period or an extended stay. The rise in travelers is driven by increased disposable income and a growing desire for unique and diverse experiences. Travelers utilize short-term vacation rentals for more personalized and cost-effective accommodations that offer local experiences and home-like amenities. For instance, in May 2024, according to the Office for National Statistics, a UK-based national statistical institute, the UK saw a rise in overseas visitors, with 38.0 million trips compared in 2023 to 31.2 million in 2022. Therefore, the increasing number of travelers will drive the growth of the short-term vacation rental industry.

Key Players In The Global Short-Term Vacation Rental Market

Major companies operating in the short-term vacation rental market are Airbnb Inc., Vrbo, Vacasa Inc., Booking Holdings Inc., Expedia Group Inc., HomeToGo GmbH, Holidu GmbH, NOVASOL A S, Evolve Vacation Rental Network Inc., Casiola WorldWide LLC, Sonder Holdings Inc., Blueground, Plum Guide, Guesty, OYO Vacation Homes, Stayz, 9flats com, Homestay Technologies Ltd., TravelStaytion, Casamundo

Global Short-Term Vacation Rental Market Trends and Insights

Major companies operating in the short-term rental market are developing property management solutions to enhance operational efficiency and improve guest experiences. Property management solutions refer to sophisticated software and systems that automate and streamline the management of rental properties, including booking, maintenance, and tenant communications. For instance, in January 2024, Guesty an Israel-based property management software provider company launched Guesty Lite. It is a streamlined property management solution for hosts managing 1-3 properties, offering Guesty's top features and technology without complexity. It enhances listing visibility on key booking channels, automates daily tasks, and provides a scalable platform to boost revenue and guest satisfaction. It offers an all-in-one solution that ensures hosts can effortlessly deliver exceptional guest experiences.

What Are Latest Mergers And Acquisitions In The Short-Term Vacation Rental Market?

In May 2024, Guesty, an Israel-based property management software provider, acquired Rentals United for an undisclosed amount. The acquisition aims to enhance new revenue opportunities by combining Guesty's advanced technology with Rentals United's extensive distribution network, leading to increased booking volumes and more relevant bookings that significantly enhance property managers' business performance. Rentals United is a Spain-based company that specializes in short-term vacation rental management.

Regional Outlook

North America was the largest region in the short-term vacation rental market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Short-Term Vacation Rental Market?

The short-term vacation rental market includes revenues earned by entities by providing services such as furnished accommodations, self-catering kitchens, flexible check-in or check-out, local recommendations, and personalized amenities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Short-Term Vacation Rental Market Report 2026?

The short-term vacation rental market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the short-term vacation rental Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?