Vacation Rental Market Report 2026

Vacation Rental Market Overview

• Vacation Rental market size has reached to $94.83 billion in 2025 • Expected to grow to $129.84 billion in 2030 at a compound annual growth rate (CAGR) of 6.5% • Growth Driver: Travel And Tourism Growth Spurs Demand In Vacation Rental Market • Market Trend: Premium Vacation Rental To Expand Global Presence And Cater To High-End Travelers • Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Vacation Rental Market?

A vacation rental is a type of lodging where homeowners or property managers rent out fully furnished properties or individual rooms within properties to travelers and tourists on a short-term basis. They offer an alternative to traditional hotel accommodations, often providing more space, privacy, and amenities tailored to the needs of travelers. Vacation rentals offer a versatile and often cost-effective lodging option for travelers seeking more space, privacy, and home-like comforts. The main accommodation types of vacation rentals are homes, resorts or condominiums, apartments, hometowns, and villas. Home refers to privately owned, fully furnished houses, cottages, or cabins that are rented out to travelers for short-term stays. It can be booked at various price points, including economic, mid-range, and luxury, through various booking modes such as online, offline, and other booking modes. The end user generations are generation zoomer, millennials, generation x, and boomers.

What Is The Vacation Rental Market Growth Forecast?

The vacation rental market size is expected to see strong growth in the next few years. It will grow to $129.84 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to growth of digital nomad travel, ai-driven pricing optimization, stricter short-term rental regulations, demand for premium vacation homes, expansion into secondary destinations. Major trends in the forecast period include platform-based property management, smart home enabled rentals, sustainable and eco-friendly stays, remote work and long-stay rentals, experience-led local hosting.

Global Vacation Rental Market Segmentation

1) By Accommodation Type: Home, Resort Or Condominium, Apartments, Hometown, Villas 2) By Price Point: Economic, Mid Range, Luxury 3) By Booking Mode: Online, Offline, Other Booking Modes 4) By End User Generation: Generation Zoomer, Millennials, Generation X, Boomers Subsegments: 1) By Home: Single-Family Homes, Luxury Homes, Beach Houses, Country Homes, Eco-Friendly Homes 2) By Resort Or Condominium: Resort Villas, Condo Units in Resorts, Timeshare Properties, All-Inclusive Resort Rentals 3) By Apartments: Studio Apartments, 1-Bedroom Apartments, 2-Bedroom Apartments, Luxury Apartments, Penthouse Apartments 4) By Hometown: Local Guesthouses, Traditional Hometown Inns, Bed And Breakfasts (B And Bs), Historic Homes, Boutique Hotels 5) By Villas: Luxury Villas, Poolside Villas, Beachfront Villas, Private Villas With Staff, Eco-Friendly Villas

What Is The Driver Of The Vacation Rental Market?

The growth in the travel and tourism sectors is expected to propel the growth of the vacation rental market going forward. The travel and tourism sectors are comprehensive and multifaceted, encompassing everything from the transportation methods that carry travelers to their destinations to the wide array of services and experiences that make travel enjoyable and memorable. The growth in the travel and tourism sectors is due to improved transportation infrastructure, globalization, trade liberalization, a rising preference for experiential travel, and a rising interest in health and wellness tourism. Vacation rentals benefit the travel and tourism sectors by providing diverse accommodation options, boosting local economies, supporting longer stays, and enhancing traveler experiences with more personalized and flexible lodging alternatives. For instance, in April 2024, according to the World Travel and Tourism Council, a UK-based forum for the travel and tourism industry, in 2023, travel and tourism accounted for around 9.1% of the global gross domestic product (GDP), totaling over $9.9 trillion. It forecasts continued growth in the sector, with expectations of its GDP contribution reaching $11.1 trillion by 2024. Therefore, the rapid growth in the travel and tourism sectors is driving the growth of the vacation rental industry.

Key Players In The Global Vacation Rental Market

Major companies operating in the vacation rental market are Airbnb Inc., Wyndham Destinations Inc., Vacasa LLC, VRBO Inc., NOVASOL A/S, Pacaso Inc., AvantStay Inc., 9flats GmbH, Panhandle Getaways Inc., StayMarquis LLC, Coastal Living Group LLC, Elliott Realty Group, Sonder Holdings Inc., Blueground, Casai, OYO Vacation Homes, Plum Guide, GuestReady, Awning.com, TurnKey Vacation Rentals

Global Vacation Rental Market Trends and Insights

Major companies operating in the vacation rental market are focusing on expanding their businesses through innovative solutions such as premium vacation rental homes to attract high-end travelers, enhance guest experiences, and differentiate themselves in a competitive market. Premium vacation rental homes are high-end luxury properties that offer exceptional amenities, superior comfort, and unique experiences, catering to travelers seeking upscale accommodations and personalized services during their stay. For instance, in June 2024, OYO Rooms, an India-based hospitality company, launched the premium vacation rental brand Belvilla in partnership with Sojo Stays, a UK-based apartment rental chain, to offer a curated collection of Belvilla by Oyo vacation homes in prime locations across several major UK cities. Guests can book these Belvilla properties for short-term and longer stays through the Belvilla platforms and other booking sites. The launch of Belvilla by Oyo in the UK represents the company's efforts to diversify its geographic footprint and capitalize on the growing demand for premium vacation rental experiences.

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

In May 2023, Guesty Inc., an Israel-based property management software company, acquired StaySense, LLC. for an undisclosed amount. Through this acquisition, Guesty aims to expand its direct booking and marketing capabilities for vacation rental managers, strengthen its position in the U.S. vacation rental market, and further its strategy of consolidating the fragmented hospitality industry under its platform. StaySense LLC is a US-based technology company specializing in providing marketing and distribution solutions for the vacation rental industry.

Regional Outlook

Europe was the largest region in the 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 Vacation Rental Market?

The vacation rental market includes revenues earned by entities by providing services such as kitchen facilities, entertainment, internet access, maintenance, and safety features. 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 Vacation Rental Market Report 2026?

The vacation rental market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry 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 vacation rental industry. 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 industry.