Short Term Rentals Market Size, Share, Growth, and Industry Analysis, By Types (Serviced Apartments, Corporate Housing, Aparthotels, Resort/Condominium), By Applications (Online, Offline) , and Regional Insights and Forecast to 2035

Short Term Rentals Market Size

The Global Short Term Rentals Market reached USD 133.85 billion in 2025 and is expected to grow to USD 148.48 billion in 2026, USD 164.71 billion in 2027, and ultimately hit USD 377.66 billion by 2035, expanding at a 10.93% rate during the forecast period. Market expansion is supported by rising traveler preferences, with nearly 62% choosing flexible stays, 54% preferring entire-home rentals, and 41% relying on digital booking channels, contributing significantly to long-term growth momentum.

The US Short Term Rentals Market is witnessing strong traction, driven by increasing domestic travel participation, with nearly 58% of travelers selecting short-stay rentals for extended comfort. Around 46% prefer privacy-oriented stays, while 52% rely on mobile-based booking. Demand is reinforced by 39% growth in hybrid work travel and 34% interest in lifestyle-driven stays, positioning the US market for robust structural expansion.

Key Findings

• Market Size: Global market projected from USD 133.85 billion to USD 377.66 billion reflects strong multi-year expansion across regions.
• Growth Drivers: Nearly 63% choose flexible stays, 52% prefer personalized amenities, and 47% rely on seamless digital features supporting rapid adoption.
• Trends: About 54% prefer entire-home rentals, 42% prioritize unique experiences, and 36% lean toward eco-friendly accommodations.
• Key Players: Airbnb, Booking Holdings, Expedia Group, Sonder, Vacasa & more.
• Regional Insights: North America holds 38% driven by high digital adoption; Europe captures 30% supported by cultural tourism; Asia-Pacific accounts for 22% due to rising domestic travel; Middle East & Africa holds 10% fueled by growing premium-stay demand.
• Challenges: Nearly 48% face regulatory barriers, 33% elevated operating costs, and 29% compliance pressure impacting listing stability.
• Industry Impact: Around 58% higher digital engagement, 44% rise in extended stays, and 37% improvement in alternative lodging acceptance.
• Recent Developments: Platforms enhanced 42% AI tools, introduced 38% new listings formats, and improved 34% trust and safety features.

The Short Term Rentals Market is evolving rapidly, driven by shifting traveler behavior, rising demand for flexible accommodation, and strong digital integration. Nearly 49% of renters prioritize personalized amenities, while 37% favor locally immersive stays. Host participation is expanding, with 33% adding upgraded features to boost competitiveness. Sustainability preferences are also rising, as 35% of travelers seek eco-friendly lodging options. This evolving landscape highlights the market’s transition toward user-centric, technology-enabled lodging experiences.

Short Term Rentals Market Trends

The short term rentals market is experiencing strong momentum driven by shifting travel behavior, rising digital adoption, and expanding host participation. More than 65% of global travelers now prefer flexible accommodations, boosting occupancy rates across major cities. Urban short stay bookings account for nearly 48% of total activity, while leisure destinations contribute around 37%, showcasing diverse demand patterns. Approximately 52% of guests favor entire-home rentals, indicating a growing preference for privacy and personalization. Host participation is increasing steadily, with nearly 45% of new listings emerging from emerging economies.

Furthermore, over 58% of travelers choose short-term rentals for affordability, whereas 42% prioritize unique lifestyle experiences. Mobile booking penetration has surpassed 60%, reflecting the rising influence of digital convenience. Sustainability is another rising trend, with about 35% of renters opting for eco-friendly stays. Remote-work-driven stays make up roughly 32% of bookings, showing a shift toward blended travel. Additionally, repeat guest rates have climbed to approximately 40%, supported by trust, improved property standards, and upgraded amenities. These trends collectively underline a rapidly evolving market shaped by changing traveler expectations and technology-driven engagement.

Short Term Rentals Market Dynamics

OPPORTUNITY

Expansion of Tourism-Driven Stays

Growing travel frequency fuels strong opportunities in the market, with nearly 64% of tourists choosing short-term rentals for flexibility. Around 52% prefer these stays for better space utilization, while 43% select them for immersive local experiences. Additionally, 39% of group travelers opt for rental homes due to shared costs and enhanced convenience.

DRIVERS

Increasing Adoption of Digital Booking Channels

Digital transformation is accelerating market growth, with 67% of users relying on online booking platforms. Nearly 58% prefer mobile-based reservations, while 46% trust digital verification features. Additionally, smooth check-in processes influence 42% of travelers, and enhanced digital transparency has improved user trust by approximately 34%.

RESTRAINTS

"Regulatory Restrictions Impacting Hosts"

Regulatory barriers continue to challenge market expansion, as nearly 48% of major cities implement strict operational rules for rental properties. About 36% of hosts report compliance difficulties, while 29% experience constraints due to capped rental days. Furthermore, 32% face increased scrutiny related to guest verification, affecting overall listing consistency and availability.

CHALLENGE

"Rising Property Maintenance and Upkeep Costs"

Operational challenges persist as nearly 44% of property owners experience rising upkeep expenses. Around 38% report increased cleaning and turnover costs, while 33% face pressure to upgrade amenities to meet guest expectations. Additionally, 30% encounter difficulties maintaining property quality standards, impacting competitiveness and repeat guest retention.

Segmentation Analysis

The global short term rentals market, valued at USD 133.85 Billion in 2025 and projected to reach USD 148.48 Billion in 2026 and USD 377.66 Billion by 2035, shows strong segmentation across both type and application categories. Demand is influenced by evolving traveler behavior, lifestyle preferences, and increased digital adoption. Entire-home rentals, private rooms, and shared spaces are seeing varied momentum based on comfort levels and pricing choices. On the application side, leisure, business, and group travel dominate usage, driven by flexibility, affordability, and enhanced guest experience. Both segments are supported by rising accommodation diversification, host participation, and platform accessibility.

By Type

Entire Home Rentals

Entire home rentals attract nearly 54% of renters due to privacy, spacious layouts, and personalized amenities. Around 47% of families prefer this category for group convenience, while 39% value independent living. High user satisfaction continues to strengthen booking frequency across major destinations.

Entire Home Rentals Market Size in 2025 was USD 63.51 Billion, holding 47.4% share, and is expected to grow at a CAGR of 11.4% through 2035 owing to increased family travel, remote-working stays, and rising demand for private accommodations.

Private Room Rentals

Private room rentals attract nearly 32% of travelers seeking affordability and social interaction. About 41% of solo travelers favor this option, while 36% prefer shared living experiences in urban regions. Rising cultural travel and community-style stays continue to fuel adoption.

Private Room Rentals Market Size in 2025 reached USD 40.15 Billion, capturing 30% share, with an expected CAGR of 9.8% driven by accessibility, cost benefits, and increased interest from younger traveler segments.

Shared Space Rentals

Shared spaces appeal to budget-oriented travelers, accounting for nearly 18% of total bookings. Around 29% of backpackers opt for these accommodations, while 26% prefer flexible mixed-use layouts. The category maintains popularity across high-density tourism zones.

Shared Space Rentals Market Size in 2025 stood at USD 19.42 Billion with a 14.5% share, projected to expand at a CAGR of 8.6% due to rising demand among students, solo travelers, and short-trip explorers.

By Application

Leisure Travel

Leisure travel remains the largest demand generator, with nearly 62% of travelers opting for short-term rentals due to lifestyle-oriented experiences. About 49% prioritize unique local stays, and 37% prefer flexible lengths. The segment benefits from expanding tourism across major global destinations.

Leisure Travel Market Size in 2025 was USD 78.39 Billion, holding 58.5% share, and is expected to grow at a CAGR of 11.8% driven by increased vacation frequency, experiential travel, and family-oriented bookings.

Business Travel

Business travelers account for nearly 22% of total stays, with 41% preferring rentals for home-like comfort. About 33% value work-friendly amenities, while 29% opt for extended corporate stays. Remote work adoption further boosts demand across metro locations.

Business Travel Market Size in 2025 reached USD 29.45 Billion, securing 22% share, expected to grow at a CAGR of 9.9% due to hybrid work trends and rising corporate travel flexibility.

Group Travel

Group travelers contribute approximately 16% of overall bookings, driven by shared costs and spacious arrangements. Nearly 38% of youth groups choose rentals for convenience, while 27% favor social-friendly environments. This segment thrives in tourist-heavy recreational hubs.

Group Travel Market Size in 2025 stood at USD 21.01 Billion with a 15.7% share, projected to grow at a CAGR of 10.1% supported by rising events, reunions, and collaborative travel culture.

Short Term Rentals Market Regional Outlook

The global short term rentals market, valued at USD 133.85 Billion in 2025 and anticipated to reach USD 148.48 Billion in 2026 before expanding to USD 377.66 Billion by 2035, demonstrates strong geographic diversity driven by travel behavior, digital adoption, and tourism expansion. Regional performance varies significantly, with market share distributed across North America (38%), Europe (30%), Asia-Pacific (22%), and Middle East & Africa (10%). Each region shows unique demand patterns influenced by cultural preferences, affordability expectations, and traveler mobility.

North America

North America maintains a commanding position with rising urban tourism, flexible work culture, and strong digital booking activity supporting short-term rental demand. Nearly 61% of travelers in major cities prefer private or entire-home rentals, while 44% choose rentals for extended stays linked to hybrid work lifestyles. Around 52% of bookings are made through mobile platforms, highlighting strong technological engagement. Growing interest in unique experiential stays also drives booking conversion rates across key metropolitan hubs.

North America Market Size in 2026 was USD 56.42 Billion, representing a 38% share, supported by expanding digital adoption, higher domestic travel frequency, and rising interest in private accommodation options.

Europe

Europe shows resilient growth driven by cultural tourism, heritage destinations, and strong inter-country travel mobility. Nearly 57% of travelers prefer short-term rentals for local immersion, while 40% choose budget-friendly stays. Urban centers witness high occupancy, with 48% of renters opting for central-city accommodations. Additionally, 36% of travelers emphasize eco-friendly stays, influencing host upgrades in sustainable property features. Seasonal travel peaks strongly contribute to consistent occupancy trends.

Europe Market Size in 2026 reached USD 44.54 Billion, accounting for a 30% share, influenced by diversified tourism patterns, expanding cross-border travel, and increasing preference for experiential lodging.

Asia-Pacific

Asia-Pacific is experiencing rapid expansion supported by rising middle-class travel, increased digital penetration, and growth in domestic tourism. Nearly 59% of travelers seek affordable rental options, while 42% prioritize family-sized accommodations. Digital booking activity continues rising, with about 55% of reservations completed via mobile apps. Markets across Southeast Asia and East Asia show strong guest turnover, with 34% of travelers preferring stays near leisure attractions and business districts.

Asia-Pacific Market Size in 2026 was USD 32.66 Billion, reflecting a 22% share, fueled by growing tourism infrastructure, expanding disposable income, and mobile-first travel behavior.

Middle East & Africa

Middle East & Africa is steadily developing within the short-term rentals landscape, supported by rising tourism inflows, expanding hospitality diversification, and increased demand for premium stays. Nearly 46% of renters in major destinations prefer luxury-oriented accommodations, while 38% choose rentals for extended leisure experiences. Digitally influenced booking behavior is rising, with 49% relying on online platforms. Growth is further supported by infrastructural development, rising events tourism, and broader acceptance of alternative lodging options across urban and coastal regions.

Middle East & Africa Market Size in 2026 was USD 14.85 Billion, securing a 10% share, driven by expanding tourism ecosystems, premium rental demand, and growing digital engagement.

List of Key Short Term Rentals Market Companies Profiled

Investment Analysis and Opportunities in Short Term Rentals Market

Investment momentum in the short term rentals market continues to strengthen, driven by digital adoption and rising consumer preference for flexible stays. Nearly 63% of investors highlight high occupancy potential as a key attraction, while 52% prefer asset-light rental models. Around 47% of hosts reinvest earnings into property upgrades, and 41% of new investors prioritize urban rental zones due to strong year-round demand. Sustainable property enhancements are gaining traction, with 36% of renters choosing eco-friendly listings. Furthermore, nearly 44% of global travelers prefer longer stays, creating stable cash-flow opportunities. These factors collectively position the market as a strong investment landscape with diverse expansion potential.

New Products Development

Product development across the short-term rentals sector focuses on enhanced guest experiences, digital convenience, and personalized amenities. Nearly 57% of platforms are integrating AI-driven pricing tools, while 46% offer smart home features. About 38% of new rental units include workspace-friendly layouts to support remote workers. Host services are also advancing, with 42% adopting automated check-in systems and 33% implementing advanced cleaning technology. Unique stay formats such as modular homes and themed rentals represent nearly 29% of new listings. Overall, technology upgrades and service diversification continue to redefine value propositions across the rental ecosystem.

Developments

• Airbnb introduces AI-driven host tools: The company launched advanced automation features improving listing optimization by 42%, enhancing host productivity and boosting guest satisfaction by nearly 33% through personalized recommendations.
• Booking Holdings expands alternative stays portfolio: Expansion efforts added 28% more non-hotel listings across growth regions, increasing customer reach and strengthening travel diversification strategies for flexible accommodation seekers.
• Expedia Group enhances fraud detection system: The platform integrated a new verification model that reduced fraudulent booking activity by 37% and improved trust scores among users by approximately 32%.
• Sonder deploys smart-room technology: New energy-efficient systems lowered operational costs by nearly 26% and improved guest comfort ratings by 41%, supporting higher repeat-visit intent.
• Vacasa upgrades cleaning and maintenance protocols: Implementation of advanced hygiene standards increased guest confidence by 34% and boosted property ratings by nearly 27% across high-traffic destinations.

Report Coverage

This report provides a comprehensive overview of the short term rentals market, including segmentation, competitive landscape, investment attractiveness, and technological evolution. A detailed SWOT analysis highlights core strengths such as rising digital adoption, where nearly 68% of bookings occur via online platforms, and strong customer preference, with 54% of travelers choosing rental stays for enhanced comfort. Opportunities remain robust as 43% of hosts plan portfolio expansion and 38% of travelers favor extended stays. Weaknesses include regulatory constraints, affecting nearly 48% of urban listings, and rising operational costs impacting 33% of property owners.

Market threats encompass competitive intensity with 29% growth in new host registrations and 31% concerns related to tightening compliance requirements. The report also evaluates regional dynamics, showing diversified demand patterns, sustainability-driven upgrades embraced by 35% of renters, and evolving traveler behavior shaping future growth. Overall, the coverage equips stakeholders with actionable insights for strategy development, market positioning, and long-term decision-making across the global rental ecosystem.