Vacation Rental Statistics, Data, Trends in 2025 [Updated]

The global vacation rental sector is expected to generate $105.7 billion in revenue by the end of 2025, according to Statista. Despite this exponential growth, there’s more to come in the world of vacation rentals, as this sector is expected to grow to more than 1.07 billion vacation rental users by 2029. 

Vacation Rental Data Categories in This Guide

• Vacation Rental Market Trends in 2025
• Post-COVID Trends in Vacation Rental Performance (2023–2025)
  US 2025 Vacation Rental Update
• Vacation Rental Management Companies
• Vacation Rental Marketing Statistics
• Vacation Rental Market Data
• Vacation Rental Guest Statistics
• Short-Term Rental Trends to Watch in 2025
• Vacation Rental Tech Adoption: Tools Hosts Are Using in 2025
• Vacation Rental Regulation and Legal Statistics (U.S. + Global)

Vacation Rental Market Trends in 2025 

In 2025, the U.S. vacation rental market is seeing strong growth in demand, profitability, and guest activity. Urban markets are making a notable comeback, smaller units are leading in bookings, and RevPAR is rebounding after a brief dip. These trends reflect shifting traveler behaviors and a tightening gap between supply and demand.

(Source: AirDNA’s 2025 Outlook Report)

1. Demand Outpaces Supply: In the United States, demand for short-term rentals grew by approximately 7.0% year-over-year, while supply increased by only 4.7%.
2. RevPAR Returns to Growth: Revenue per available rental (RevPAR) increased by 1.8% in early 2025 after a slight dip in 2024. In April alone, RevPAR rose by 12.7%, driven by both higher occupancy and average daily rates.
3. Urban Markets Rebound: Urban short-term rental markets, which underperformed during the pandemic, are now growing faster than rural or resort areas. This marks a shift in traveler preferences back to cities.
4. One- and Two-Bedroom Rentals Dominate: Smaller units (1–2 bedrooms) are seeing the highest booking volumes in 2025. These properties are preferred by solo travelers, couples, and remote workers, offering better occupancy rates.

Real Estate in the Short-Term Rental Market

• In 2023, over 2.4 million STR listings were active in the U.S., corresponding to around 1.8 million unique vacation rental properties.
• About 85% of vacation stays in the U.S. are booked through Airbnb, underscoring its dominant role in the STR booking landscape

Post-COVID Trends in Vacation Rental Performance (2023-2025)

The COVID-19 pandemic nearly brought global travel to a standstill, severely impacting short-term rental businesses due to lockdowns and social distancing measures. But in the years since, international borders have reopened, and luxury travelers are once again exploring the world without major restrictions.

Since the pandemic’s end, the short-term rental market has rebounded rapidly. In fact, the pandemic reshaped travel habits and fueled long-term growth. Supply has surged across Europe, Asia, Latin America, and Africa. Between December 2023 and 2024, listings and guest capacity increased by 9% globally, with Africa and Asia leading the way, posting guest capacity growth of 25% and 22% respectively.

United States Vacation Rental 2025 Update

As the largest short-term rental market globally, the United States continues to shape industry trends in 2025. This section highlights how U.S. vacation rental performance has evolved post-COVID, including booking volume, regional growth, and changing guest preferences across states and cities.

Vacation Rental Outlook Report

1. United States Vacation Rental Demand & RevPAR Growth

In Q1 2025, the U.S. short-term rental market showed record-breaking winter performance:

• Occupancy increased by +7.2% year-over-year, marking the first January occupancy increase since 2021 (AirDNA – January 2025 U.S. Review).
• In April 2025, demand rose by +10.1% YoY (Year-over-Year), driven by the spring break season (AirDNA – April 2025 U.S. Review).
• During the same month, RevPAR (Revenue Per Available Room) surged by +12.7% YoY, reaching $161.93, the highest monthly average on record (AirDNA – April 2025 U.S. Review).

2. United States Vacation Rental Occupancy Rates 2025 vs 2023 by Market Type

– In April 2025, U.S. vacation rental markets showed significant variation in occupancy trends by segment, with national occupancy forecast to reach ~54.9% by year-end (AirDNA Outlook via BusinessWire).

– Compared to April 2023: (Source: AirDNA, Apr 2025)

• +13.76% growth in small cities and rural areas, leading all categories.
• +7.9% growth in mid-sized cities, reflecting healthy demand in secondary metros.
• Suburban markets grew moderately (precise percentage not disclosed), but now outperform urban cores in 75.5% of large metropolitan areas, such as Kansas City and St. Louis.
• Urban markets declined slightly by 0.5%, impacted by regulatory pressure in cities like New York (–23.1%), despite growth in cities like Indianapolis (+33%).

3. United States Vacation Rental Forecast (2023–2025) 

(Source: AirDNA Growth Trends, Apr 2025)

– Luxury-tier properties are driving ADR expansion: average daily rates for upscale listings grew +5.23% YoY, while budget-tier ADRs declined –0.33%.

– Listings with 6+ bedrooms saw the highest demand growth, with +12.61% YoY, reflecting continued traveler interest in larger, shared spaces.

– Pet-friendly rentals command $17.41 higher ADR (Average Daily Rate) on average and see +5.4% stronger growth compared to non-pet listings.

– Urban markets are recovering unevenly: while New York saw a 23.1% listing drop due to regulation, cities like Indianapolis grew +33% thanks to favorable policy.

– Suburban areas now outperform urban cores in 75.5% of large metro markets, driven by flexible zoning and remote work trends.

– Despite regulatory headwinds in major cities, the national STR market is growing at 4–6% annually, with rural, suburban, and luxury segments leading.

4. United States Vacation Rental Booking Demand 2025 vs. 2024

(Source: AirDNA Growth Trends, Apr 2025)

– Nationwide booking demand increased by +4–6% year-over-year, with major differences across property types and locations.
– Large homes with 6+ bedrooms experienced the fastest booking growth at +12.61% YoY, driven by family and group travel.
– Three-bedroom properties saw a strong +7.48% YoY growth rate, outpacing smaller listings.
– Luxury-tier listings led ADR-driven revenue gains in 2025, indicating that booking volume alone isn’t the sole driver of profitability.
– Pet-friendly rentals generated +5.4% more demand and earned $17.41 higher average daily rates than non-pet listings.
– Top-performing urban markets by booking growth included:
• Indianapolis: +33%.
• Jersey City/Newark: +25%.
• Cleveland: +20.9%.

Vacation Rental Management Companies

Vacation rental management companies (VRMCs) play a growing role in helping property owners scale operations and improve profitability. In 2025, professional management continues to gain ground as owners seek support with marketing, automation, guest services, and compliance. This section explores the top players and their impact on the market.

Vacation Rental Company Market Size in 2025

The U.S. Market: Expected to generate USD 21.08 billion in revenue in 2025, with a CAGR (Compound Annual Growth Rate) of 4.13% (2025–2029). Demand is shifting toward rural and coastal destinations. (Statista)

European Markets: Dominates with a projected USD 62.25 billion by 2037, driven by sustainable tourism and cultural heritage. (ResearchNester)

Asia-Pacific & Emerging Markets: Growing at a CAGR of approximately 4.9%, with rising disposable incomes and tourism in countries like Vietnam and India. (Skyquestt)

Well-known Large Companies in Leisure Real Estate Management (2025) 

(Source: Rentalsunited)

Vacation Rental Company Listing Practices (OTA Usage)

– In 2024, vacation rental companies managing 51–250 properties used an average of 2.6 OTA (Online Travel Agency) platforms to distribute their listings (BuildUp Bookings).

– In 2024, only 5.82% of rentals were on all major OTAs, and 28.8% used more than one — most managers list on just one or two platforms (Lighthouse).

– In 2024, direct booking sites accounted for nearly 34% of bookings, second only to Airbnb’s 46%. (Short Term Rentalz).

– In 2024, Airbnb listings with Instant Book earned ~10% more revenue per rental than those without it, according to AirDNA (AirDNA).

Vacation Rental Software and Services (2025)

– The global vacation rental software market is valued at $1.5 billion in 2024, projected to reach $3.2 billion by 2033 (LinkedIn Market Insight).

– The vacation rental management software segment is worth $217.6 million in 2024, expected to grow to $326.1 million by 2033, with a CAGR of 4.6% (Market Reports World).

– Global property management software (across real estate) is estimated at $27.95 billion in 2025 and will reach $54.16 billion by 2032. (Globenewswire).

– In the U.S., 74% of vacation rental managers use channel managers, and 73% use dedicated property management systems (LLCBuddy).

– 53% of professional managers with 50+ properties use AI-powered automation tools (e.g., for guest messaging, pricing, or analytics) (LLCBuddy).

– Online bookings account for 83% of total U.S. vacation rental revenue, highlighting the dominance of OTAs and digital platforms (LLCBuddy).

– Vacation rental managers pay 5% to 15% of revenue in commissions to booking platforms, depending on the platform and contract (BuildupBookings).

Vacation Rental Marketing Statistics

As of 2024–2025, these updated metrics show how much money and effort short-term rental companies spend to gain and retain users:

– On average, vacation rental companies have an ROI of $36–$44 for every $1 spent on email marketing (Campaign Monitor via HostTools)

– 84% of vacation rental сompanies include a printed guidebook within the property (BuildUp Bookings).

– The global short-term rental market is valued at $135 billion in 2024, reflecting its expanding role in the travel economy (Rent responsibly).

– There are approximately 140,674 vacation rental companies worldwide, with about 20% in the U.S. and 35% in Europe, reflecting strong regional concentration and growth potential (TrueList). 

– 55% of guests now book vacation rentals via mobile devices, reflecting the increasing importance of a mobile-first booking experience (Vestio Capital).

Vacation Rental Market Data

Behind every successful short-term rental strategy is access to reliable data. From pricing trends and occupancy rates to guest behavior and local competition, accurate insights help property owners and managers make informed decisions. In 2025, this data is more important than ever. This section highlights the most current vacation rental metrics to help you understand where the market is heading and how to stay competitive.

Global Vacation Rental Market Size (2020–2025)

– 2023 Global Vacation Rental Revenue: $90.55 billion (USD) (PhotoAiD via Statista).

– 2024 Global Vacation Rental Revenue: $94.45 billion (USD) (Precedence Research – June 2025).

– 2025 Global Vacation Rental Revenue (forecast): $97.85 billion (USD) (Precedence Research – June 2025).

– 2034 Global Vacation Rental Revenue (forecast): $134.26 billion (USD) (Precedence Research – June 2025).

Global Vacation Rental Bookers by Year

The global number of vacation rental users reached approximately 860 million in 2024, continuing a strong upward trend in the travel and tourism market. Projections indicate that this growth will persist, with the total user base expected to expand by over 215 million users by 2029, an increase of 25.18%, ultimately reaching around 1.1 billion users. This steady rise marks nearly a decade of uninterrupted growth, underscoring the increasing global preference for vacation rentals over traditional accommodations. (Statista, PhotoAiD).

Yearly Global ARPU in the Vacation Rental Market

The average revenue per user (ARPU) in the leisure rental sector is growing. According to the latest data, global ARPU reached approximately $117 in 2024 (Statista).

In the US, the average ARPU in 2024 stands at an estimated $315.88 (PhotoAiD).

Global Vacation Rental Market By Accommodation Type 

• Home: 48% market share in 2023, driven by demand for private, spacious, and flexible lodging options. Ideal for families, groups, and long-term stays (Market.us Report, Dec 2024).
• Apartments: Second-largest segment: Popular among urban travelers due to central locations and full-service amenities. Serves both business and leisure segments (Market.us Report, Dec 2024).
• Resort/Condominium: Luxury-focused subsegment: Appeals to tourists seeking resort-style amenities like pools, spas, and high-end service (Market.us Report, Dec 2024).
• Others: Emerging niche segment: Includes cabins, villas, eco-lodges, and shared spaces. Gaining traction with experiential and sustainable travel demand  (Market.us Report, Dec 2024).

Global Vacation Rental Market By Booking Mode

Despite the global rise in digital travel platforms, offline channels still dominated the vacation rental market in 2023, accounting for 70% of all bookings due to the continued demand for personalized service and direct communication.

• Offline bookings held a dominant 70% market share(Market.us Report, Dec 2024).
• Online bookings accounted for 30% (Market.us Report, Dec 2024).

Regional market distribution (2024–2025)

Europe remains the largest region in the global vacation rental market, holding a 36.2% share with an estimated value of $32.1 billion in 2024 (Precedence Research).

North America, led by the U.S., continues to grow due to strong domestic travel and widespread use of platforms like Airbnb. The U.S. market size is projected to be between $19.77 and $20.08 billion (2023–2025) (PhotoAiD).

Asia-Pacific is the fastest-growing region, driven by a growing middle class and digital adoption. Japan, Thailand, and Australia are leading markets, especially in urban and beach destinations (Market.us).

Latin America and the Middle East & Africa are still smaller segments but showing steady growth. Their expansion is linked to improved tourism infrastructure and rising demand for short-term stays (Market.us).

Summary table of key indicators

Top 5 Countries Dominating Vacation Rentals 

(Source: 99firms)

Key facts:

(Source: Stellar Market Research)

The US remains the largest leisure rental market in the world, with revenues of around $19.77 billion in 2024 (up from $10.34 billion in 2020). 

Europe as a whole generated around $33.5 billion in 2024, with the United Kingdom and Germany leading the way. 

The Asia-Pacific region is growing, with China and Japan showing steady revenue growth.

Global Vacation Rental Market Forecast for 2025 

According to Statista Market Insights (July 2024), the global vacation rental market is projected to experience steady growth through 2025–2029.

• Total revenue in 2025: $105.71 billion.
• Projected CAGR (2025–2029): 4.4%.
• Estimated market volume by 2029: $125.58 billion.
• Number of users by 2029: 1.07 billion.
• User penetration rate in 2025: 11.6%.
• User penetration rate in 2029: 13.3%.
• Average revenue per user (ARPU) in 2025: $117.05.
• Online sales share in 2029: 78%.
• Top revenue-generating country in 2025: United States — $21 billion.

`U.S. Vacation Rental Market Value

The United States has maintained its leadership in the global vacation rental market between 2023 and 2025. Revenue grew from $19.39 billion in 2023 to $19.77 billion in 2024, with projections reaching $20.08 billion in 2025. In 2025 revenue at $21.08 billion, reinforcing the U.S. position as the world’s top-grossing vacation rental market (Statista, PhotoAiD).

U.S. Vacation Rental Market Value by City (Source: Statista) 

• Hawaii (statewide) – 32,597 listings for ~1.4 million people  → ≈ 23.3 listings per 1,000 inhabitants.
• Broward County, FL – ≈9.1 listings per 1,000 inhabitants (includes Fort Lauderdale).
• San Francisco, CA – ≈8.5 listings per 1,000 inhabitants.
• Clark County, NV – ≈6.9 listings per 1,000 inhabitants (includes Las Vegas).
• Los Angeles, CA – ≈5.8 listings per 1,000 inhabitants.
• New York City, NY – ≈4.9 listings per 1,000 inhabitants (note: affected by Local Law 18 restrictions).

Vacation Rental Market Value by Country 

• Global
  – $89.32 billion in 2023
  – Projected to reach $94.77–99.6 billion in 2024 (Grand View Research)
• United States
  – $19.39 billion in 2023, rising to $20.08 billion in 2025
  – Highest-grossing country globally (PhotoAiD)
• Europe (overall)
  – Estimated $32.1 billion in 2024
  – Holds ~36.2% of global vacation rental revenue (Precedence Research)
• Germany
  – Around $4.61 billion in 2025
  – Among the top 5 markets globally (Statista)
• Japan
  – Around 4.9% from 2024 to 2030.
  – Among the top 3 vacation rental markets (Grandview Research)
• Australia
  – No exact revenue value, but urban occupancy rates reached ~73%
  – Noted for high demand in cities like Sydney and Melbourne (Grand View Research)
• Asia-Pacific (regional)
  – Fastest-growing region with a projected 4.9% CAGR through 2030 (Grand View Research)
• Latin America
  – Growing, but lags behind Europe and the U.S.
  – Specific 2023–2024 figures not published (Market.us).
• Middle East & Africa
  – Emerging region with modest growth
  – No specific country-level data is available (Market.us).

Age-Based Distribution of U.S. Vacation Rental Bookings

In the U.S. vacation rental market, individuals aged 25–34 accounted for the largest share of bookings at 30%, followed by the 35–44 age group at 27%. Travelers aged 45–54 made up 17% of bookings, while the 18–24 segment contributed 16.3%. Older adults between 55–64 represented 11.5%, reflecting lower engagement compared to younger demographics. This distribution highlights the strong participation of millennials and Gen X in the vacation rental economy.

Vacation Rental Guest Statistics

In 2025, the U.S. vacation rental market is projected to generate $20.08 billion in revenue, growing at a CAGR of 4.13% through 2029, reaching $24.78 billion, with approximately 62.57 million users and a user penetration rate of 19.1%. Key guest segments include families (40% of bookings), prioritizing kitchens (64%) and pet-friendly options (31%), and Millennials/Gen Z (30.9% of the market), favoring unique stays like barns (55% growth) and urban rentals. Online bookings dominate (83% of revenue), with platforms like Airbnb (7 million listings) and Vrbo leading, while demand for eco-friendly rentals rises (75% preference). However, challenges like high cleaning fees and regulatory hurdles persist, alongside a 5.9% demand increase and an average daily rate of $326. (Statista, PhotoAiD).

United States Vacation Rental Demand by Accommodation Type 

(Source: Buildupbookings)

• Barn bookings surged by 55%, houseboats by 40%, and treehouses by 30% on Vrbo compared to the previous year, showcasing a strong move toward unique, experiential stays.
• Beach destinations continue to lead in traveler preferences, with about 74% of travelers choosing coastal rentals.

Vacation Rental Booking Sites (OTAs) Statistics

Airbnb Statistics 

(Source: Airbnb News, 2025)

– 1 in 5 guests globally choose Airbnb for local travel experiences.

– Over 5 million Hosts offer stays and experiences worldwide.

– 2+ billion guest arrivals across 240+ countries.

Vrbo (HomeAway) Statistics 

(Source: Lodgify)

– Over 2 million listings in 190 countries.

– 150 million users in 190 countries. 

TripAdvisor Statistics  

(Source: TripAdvisor)

– Over 400 million active users in 190 countries. 

– More than 8 million locations worldwide. 

Vacation Rental Booking Site (OTA) Fees

Here’s a breakdown of the fees charged for using the following service providers to book your vacation rental stays:

Short-Term Rental Trends to Watch in 2025

To provide you with detailed information on the best way to navigate the future of the vacation rental market, these are the top 2025 vacation rental industry trends:

• Customer experience is key for vacation luxury rentals.
• Climate change and natural disasters now play a huge role.

Customer Experience is Key for Vacation Luxury Rentals

While 2024 focused heavily on the listing of premium properties, 2025 is proving that high-value amenities and durable structures are nothing without tailored experiences and positive reviews to back them up. Vacation rental users want more than just an attractive building with 5-star facilities. They want to enjoy a seamless, tailored experience with custom services that make their trip memorable. 

As a result of the lesser emphasis on high-value amenities by vacation travelers, these travelers have shown a tendency to opt for smaller but more refined spaces. A quick look at AirDNA’s 2025 Outlook Report revealed that fewer large groups now travel together, which has led to a rise in the demand for one- and two-bedroom apartments. You’re more likely to come across solo travelers, remote professionals, and couples at vacation stays, and they do not joke about the quality of experience they get during their stay. These categories of vacation travelers now want to see Smart Locks (such as August), automation tools (such as Duve), and guest apps (such as Touch Stay) in their short-term stays. 

Before now, vacation rentals were simple four-walled spaces that allowed travelers to enjoy a home-away-from-home experience, but the trend has changed drastically as travelers are looking for more than standard vacation homes. In 2025, a couple is more likely to book an A-frame cabin, dome houseboat, or other architectural masterpieces before settling for a standard 2-bedroom apartment. 

Climate Change and Natural Disasters Now Play a Huge Role

The world is fast becoming a global village, and vacation stays are considered by many as a home away from home, but the reality of today is that people don’t just want to stay anywhere, especially if the region has a history of climate change-related events and natural disasters. AirDNA’s vacation rental website revealed that extreme weather is no longer an abstract concern for travelers, as there was a sharp decline in the supply of vacation stays in hurricane-prone areas like Florida and the Gulf Coast.

This shift isn’t limited to travelers alone. In hurricane-prone regions like Florida and the Gulf Coast, many hosts have scaled back operations or avoided rebuilding after major storms. The decline in available listings in these areas reflects growing concern over stricter regulations, rising insurance premiums, and the increasing financial risks tied to climate-related events.

Vacation Rental Tech Adoption: Tools Hosts Are Using in 2025

Vacation rentals are a luxury market, which means that they are mostly patronized by those with a sizable amount of disposable income. So, there may not be thousands of customers weekly. While this is not necessarily a bad thing, it means you must take your client management seriously, or you risk being swept away in a very competitive market. Leading hosts now use different types of technology, such as smart locks and AI chatbots, to keep travelers happy and offer a seamless experience. 

The global vacation rental market is expected to reach $108 billion in 2025, growing at a compound annual growth rate (CAGR) of 9.8% through 2035, which reflects strong demand for personalized and tech-enabled stays. Moreover, in 2024, nearly 32% of Airbnb bookings were for “unique stays” such as treehouses, cave homes, or converted windmills, highlighting travelers’ growing preference for immersive and distinctive experiences. These trends underscore the importance of leveraging technology and innovation to meet the evolving expectations of high-value guests.

Vacation Rental Software

Digital solutions have made booking accommodation extremely convenient: travelers can find and book properties in just a few clicks via mobile apps and websites with interactive maps, filters, and reviews. At the same time, tools for owners offer centralized calendar management (with two-way synchronization), automated guest communication, dynamic pricing based on market data, and the ability to create their own website, and mobile apps for daily operations.

According to Credence Research, the global rental software market was valued at $328.22 million in 2024 and is projected to grow to $818.4 million by 2032, with a compound annual growth rate (CAGR) of 12.1%.

WiFi Marketing

Wi-Fi marketing has become a key tool for short-term rental companies looking to collect guest contact information and increase direct bookings. StayFi allows you to automatically capture the email addresses of all guests who connect to the Wi-Fi network, not just the person who made the booking.

This is done through a branded login page that displays your logo or website instead of redirecting to an OTA like Airbnb. StayFi integrates with popular PMS systems and email marketing platforms, supports automated email and SMS campaigns, and provides engagement analytics. It also allows you to create personalized offers for returning guests.

The system does not require guests to install any apps and works with compatible Wi-Fi equipment, giving property owners an easy way to manage networks while building a direct marketing channel.