Short-Term Vacation Rentals (STRs) 2025 to Grow at XX CAGR with XXX million Market Size: Analysis and Forecasts 2033

Key Insights

The global short-term vacation rental market size was valued at USD 54.7 billion in 2025 and is expected to expand at a compound annual growth rate (CAGR) of 9.4% from 2025 to 2033, reaching USD 104.9 billion by 2033. The market growth is attributed to factors such as increasing urbanization, rising disposable income, and growing popularity of alternative accommodation options among leisure and business travelers.

The urbanization trend has led to a surge in demand for short-term rentals in urban centers, as people seek convenient and affordable accommodation options in the heart of the city. The middle class and affluent population in urban areas often prefer short-term rentals over traditional hotels, as they offer more space, flexibility, and privacy at a lower cost. The market is also driven by the popularity of online booking platforms, such as Airbnb and Booking.com, which have made it easier for travelers to find and book short-term rentals.

Short-Term Vacation Rentals (STRs) Trends

The short-term vacation rental (STR) market is experiencing significant growth worldwide, driven by factors such as the rise of digital platforms, increased travel demand, and changing consumer preferences. According to industry experts, the global STR market is estimated to reach over $150 billion by 2028, with a compound annual growth rate (CAGR) of around 11%. This growth is being fueled by a growing number of travelers seeking unique and authentic experiences, flexibility, and affordability compared to traditional hotels.

Some of the key trends shaping the STR market include:

• Increased adoption of digital platforms: Online booking platforms like Airbnb, Vrbo, and Booking.com have made it easier for travelers to discover and book STRs, expanding the market reach and accessibility.
• Diversification of property types: STRs now include various property types, from apartments and houses to cabins, villas, and even treehouses, catering to diverse traveler needs and preferences.
• Rising popularity of rural destinations: Rural and off-the-beaten-path destinations are gaining popularity among STR travelers, who seek to escape urban crowds and immerse themselves in nature.
• Growing demand for extended stays: STRs are increasingly being used for longer-term stays, such as business travel, family vacations, or remote workcations, as they offer more space, privacy, and flexibility than traditional hotel rooms.

Driving Forces: What's Propelling the Short-Term Vacation Rentals (STRs)

Several factors are driving the growth of the STR market, including:

• Increasing travel demand: The rise in global travel, particularly in emerging markets, is fueling the demand for STRs as travelers seek alternative accommodation options.
• Changing consumer preferences: Travelers are increasingly seeking unique and authentic experiences, along with flexibility and affordability, which STRs can often provide compared to traditional hotels.
• Growth of digital platforms: Online booking platforms like Airbnb and Vrbo have made it easier for travelers to discover, book, and manage STRs, increasing their accessibility and visibility.
• Government regulations: Governments in some regions have implemented regulations to support the growth of the STR industry, such as clear licensing requirements and tax guidelines.
• Technological advancements: Mobile apps and automated systems have streamlined the STR booking and management process, making it more convenient for both travelers and property owners.

Challenges and Restraints in Short-Term Vacation Rentals (STRs)

Despite the growth opportunities, the STR market also faces some challenges and restraints:

• Regulatory restrictions: In some cities and jurisdictions, STRs face regulatory restrictions, such as zoning regulations, licensing requirements, and noise ordinances, which can limit their availability and profitability.
• Neighborhood concerns: STRs can sometimes raise concerns among neighbors regarding noise, traffic, and potential safety issues, leading to conflicts and local opposition.
• Competition from hotels: Traditional hotels continue to compete with STRs for market share, particularly in urban areas where both types of accommodation are available.
• Seasonality: STRs can be subject to seasonality, with demand fluctuating depending on the time of year and destination, impacting occupancy rates and revenue potential.
• Property damage and liability: Property owners need to manage potential risks associated with STRs, such as damage to the property or accidents involving guests, which can be costly and time-consuming to resolve.

Key Region or Country & Segment to Dominate the Market

Region

The Asia-Pacific region is projected to witness the fastest growth in the STR market due to factors such as rising disposable income, increasing travel demand, and the growing popularity of online booking platforms.

Segment

Longer-term stays for business travelers are expected to dominate the STR market as more people opt for flexible work arrangements and remote workcations. This segment offers stability and predictability in occupancy and revenue compared to short-term tourist rentals.

Urban vs. Rural Markets

Both urban and rural markets have their own strengths in the STR industry:

• Urban markets: High demand from tourists and business travelers, diverse property types, and a large pool of potential guests.
• Rural markets: Unique experiences, natural surroundings, and growing appeal to travelers seeking an escape from urban areas.

Growth Catalysts in Short-Term Vacation Rentals (STRs) Industry

• Technological advancements: Continued advancements in mobile apps, automation, and data analytics will enhance the convenience, efficiency, and personalization of the STR experience.
• Sustainability initiatives: The growing emphasis on sustainable practices in travel is creating opportunities for STRs to adopt eco-friendly policies and certifications, appealing to environmentally conscious travelers.
• Partnerships and collaborations: Strategic partnerships between STR platforms, property managers, and local businesses can create value-added services and enhance the overall guest experience.
• Government support: Continued government support through clear regulations and incentives can foster the growth and sustainability of the STR industry.
• Investment and funding: Increased investment in the STR sector, including funding for property development and technology innovation, will support its continued expansion and competitiveness.

Leading Players in the Short-Term Vacation Rentals (STRs)

• Airbnb
• Booking.com
• HomeAway/Vrbo
• TripAdvisor
• Expedia
• HomeToGo
• Tripping
• OYO (India)
• Sonder
• TurnKey
• FlipKey
• Hotels.com
• StayAlfred
• Atraveo
• Homestay.com
• OneFineStay
• Interhome
• 9flats
• Vacasa
• Marriott Homes & Villas
• Agoda
• Getaway
• Plum Guide

Significant Developments in Short-Term Vacation Rentals (STRs) Sector

• Airbnb's acquisition of HotelTonight in 2019, expanding its offerings to include last-minute hotel bookings.
• Expedia Group's launch of Vrbo Plus in 2021, a premium collection of vacation rentals meeting specific quality standards.
• Sonder's partnership with Marriott International in 2022 to offer branded and managed apartment-style accommodations.
• The rise of flexible lease models, allowing property owners to rent their STRs on a short-term basis while maintaining long-term tenancy agreements.
• Increased investment in technology solutions for STR management, including automated pricing, guest screening, and property maintenance.

Comprehensive Coverage Short-Term Vacation Rentals (STRs) Report

For a comprehensive and in-depth analysis of the Short-Term Vacation Rental (STR) market, including market size, growth forecasts, market segmentation, competitive landscape, and key industry trends, consider purchasing a detailed market research report from a reputable provider such as Grand View Research, Technavio, or Mordor Intelligence.

Short-Term Vacation Rentals (STRs) Segmentation

• 1. Type
  • 1.1. 1-3 Days Tourist Rentals
  • 1.2. 3-8 Days Tourist Rentals
  • 1.3. Longer Time Business Travellers
• 2. Application
  • 2.1. Urban Markets
  • 2.2. Rural Markets

Short-Term Vacation Rentals (STRs) Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific