Vacation Rental Statistics By Market Size, Demand and Facts

Introduction

Contents

Introduction
Editor’s Choice
What Is A Vacation Rental?
General Vacation Rental Statistics
Vacation Rental Market
Vacation Rental Industry Growth And Sustainability
Vacation Rental Users Statistics
Regional Vacation Rental Statistics
Vacation Rental Revenue Statistics
Guest Preferences And Behaviors In Vacation Rentals Statistics
Vacation Rental Statistics by Demographics
Vacation Rental Ownership and Host Statistics
Conclusion

Vacation Rental Statistics: Vacation rentals are a great way to relax and recharge during a trip. Each year, global tourists, especially millennials, spend around $180 billion on travel. As a result, the market is expected to grow at a rate of 5.3% per year from 2022 to 2030. Planning and booking vacations have become much easier today; you can ask ChatGPT for a trip itinerary and then book your stay at the best prices from websites that offer affordable accommodation options.

Vacation rentals have many perks compared to regular hotel rooms. They offer more space, extra amenities, and a more authentic travel experience. They can also save you money, especially for families or groups travelling together. These Vacation Rental Statistics include the latest data on both the global and U.S. holiday rental markets.

Editor’s Choice

The U.S. vacation rental market is projected to grow at 4.7% annually from 2023 to 2030.
In 2020, the global vacation rental market was valued at around $87.09 billion.
By 2027, the vacation rental market is predicted to grow at a rate of 4.6% each year.
The resort/condo sector is expected to grow by 6.1% annually from 2022 to 2030.
The global short-term vacation rental market was valued at $109.76 billion in 2022 and is expected to grow at 11.2% each year from 2023 to 2030.
The U.S. vacation rental market is expected to reach $20.57 billion by 2027.
The U.S. vacation rental industry is expected to make $19.3 billion in revenue in 2023.
In 2023, North America made up about 24% of the global vacation rental market revenue.
Europe is the biggest market for vacation rentals, holding 46% of the global market share.

What Is A Vacation Rental?

Vacation rentals are private places that travelers can rent for a short stay. These can be fully furnished apartments, houses, condos, cottages, or cabins, where guests can use the kitchen, amenities, and outdoor areas (if available). Vacation rentals are a popular choice over traditional hotels, offering more privacy, space, and often a chance to experience local life.

Some of the most popular vacation rental websites are Airbnb, Vrbo (formerly HomeAway), and Booking.com. Vacation rental software helps property owners manage their rentals. Similar to hotel management systems, it automates key tasks like scheduling bookings, processing reservations, and handling communication. It also helps sync availability across different booking platforms, manage income, promote the property, and create reports. Well-known software providers include Guesty, Hostaway, and Lodgify.

General Vacation Rental Statistics

The global vacation rental market is expected to grow to $119 billion by 2030.
Agoda and Vrbo have increased their maximum stay limit from 32 to 180 days.
By 2026, the number of people using vacation rentals is projected to reach 62.9 million.
There are 140,674 vacation rental businesses around the world.
Almost 31% of travelers say spending time with family is their main reason for travelling.
37% of people planned to book a vacation rental to work remotely.
Vrbo spent over 10 times more than Airbnb on advertising in the U.S.
The vacation rental market is growing at a rate of 6.9%.
Airbnb has 5 million rental properties available worldwide, operating in 191 countries and 81,000 cities.

(Reference: statista.com)

The average revenue per user is $110.40.
Around 81% of Gen Z have stayed in a vacation rental.
Over 260 million people around the world have used Airbnb.
Research shows that 80% of baby boomers have rented a vacation home through an online service.
In 2023, global vacation rental earnings are expected to reach $94.34 billion, up from $81.35 billion in the previous year.
The U.S. is expected to be the largest contributor to the global vacation rental market in 2023, with $19.39 billion, compared to $17.66 billion in 2022.
Airbnb currently has 7 million active rental listings.
Nearly 76% of vacation rental bookings in the U.S. are made online.
Vrbo saw an 85% increase in demand for chalets compared to last year.
6% of men use vacation rentals more frequently than women.
Only 29% of rental guests reported having a negative experience during their stay.

Vacation Rental Market

The global vacation rental market size is projected to increase from USD 89.4 billion in 2023 to USD 129.8 billion by 2033.
This market is growing at a CAGR of 3.8% during the forecast period from 2024 to 2033.

Approximately 700 million travelers utilized vacation rentals globally, with over 60 million Americans favoring this accommodation type in 2022.
In the U.S., the expected average daily rate (ADR) for vacation rentals is projected to be USD 326 in 2024.
The U.S. is expected to have around 62.57 million vacation rental users in 2024.
There are over 2.4 million vacation rental listings and 785,000 hosts worldwide as of 2023, highlighting the industry’s extensive diversity and global reach.
In the U.S., 31.3% of vacation rentals are privately owned, with about 600,000 Americans using online platforms to rent out their properties.
The average duration of vacations has increased by 68%, with travelers now opting for stays between 21 to 30 days.
In the U.S., there are approximately 9 million second homes, of which 44% are professionally managed and 25%-35% are rented out.
The expansion of remote work has significantly increased demand for vacation rental properties, offering ample space and amenities for extended stays.
Government investment and regulations are shaping the vacation rental market by enforcing policies related to zoning, taxation, and safety standards.

Vacation Rental Industry Growth And Sustainability

There are 9 million second homes in the U.S., with 44% professionally managed and 25%-35% of these rented out.
The U.S. has 23,000 vacation rental companies, which make up 20% of all vacation rental businesses worldwide.
45% of property investors bought homes to generate rental income instead of flipping or just seeking price appreciation.
Almost 49% of vacation home buyers plan to use their property for vacations or as a family retreat.
The number of vacation rental users is expected to reach 57 million by 2023.
User penetration was 9.7% in 2019 and is expected to grow to 11.4% by 2023.
The average revenue per user is $438.49.
Vacation rental income accounts for about 24% of the average owner’s total income.
Revenue in the vacation rental market is expected to grow at a 7.2% annual rate, reaching $18.5 billion by 2023.
Almost 29% of vacation properties are co-owned by more than one person.
42% of investors and 39% of vacation home buyers paid in full with cash for their property.
Rental income varies significantly based on home size, location, and amenities. For example, a 1-bedroom vacation rental in the middle of the market earns about $38,490 per year, while a 3-bedroom brings in $98,688.
34% of investors bought vacation homes in suburbs or subdivisions, 24% in small towns, and 19% in urban areas or city centers.
Nearly 33% of buyers purchased in beach areas, 21% near lakes, and 15% in rural areas.
63% of investors and 52% of vacation home buyers chose detached single-family homes.

(Reference: todayshomeowner.com)

The median size of an investment property is 1,500 square feet.
A report from the Hawaii Tourism Authority found that 15% of visitors would only have visited Hawaii if vacation rentals were available.
85% of vacation rental companies and hoteliers surveyed said automation is a priority.
Currently, 82% of vacation rental property managers plan to implement keyless entry technology.
34% of property managers are planning to increase their investment in technology by 11-25%.

Vacation Rental Users Statistics

(Reference: consumeraffairs.com)

Short-term rentals are a popular option for many travelers in the U.S.
In 2023, there were 2,459,260 vacation rental listings available and over 785,000 individual hosts.
Travelers stayed a total of 207 million nights in these rentals.
During the peak of the COVID-19 pandemic in 2020, the number of people using vacation rentals in the U.S. dropped by almost 20 million compared to the year before.
However, by 2022, the number of users had already grown beyond pre-pandemic levels, reaching 60.92 million.
Projections indicate that in the next five years, the U.S. short-term rental market will gain almost 8 million more users.

Regional Vacation Rental Statistics

The vacation rental market is expected to keep growing in the coming years, driven by factors like the increasing popularity of short-term rentals, a larger millennial population, and a higher demand for flexible travel options.
The leisure and hospitality industry, especially the vacation rental market, is bouncing back.
It is projected to grow at a rate of 4.7% each year from 2023 to 2030.
The global market was valued at $82.63 billion in 2022 and is expected to reach $119.01 billion by 2030.

(Reference: precedenceresearch.com)

In 2023, the expected annual revenue per vacation rental unit is about $1,550.
In 2022, the average monthly revenue per listing in the U.S. was $1,248.
Millennials are the biggest group of customers in the vacation rental market, spending approximately $180 billion on travel every year.
By 2023, it was estimated that the U.S. would have 1,450,325 short-term rental listings, up from 1,260,091 in 2022.
However, rental demand is expected to decrease slightly, with only 57.6% demand in 2023, compared to 59.5% in 2022.
The resort/condo market is expected to grow the fastest, with a 5.4% annual growth rate from 2023 to 2030.
Offline bookings currently bring in the highest revenue share, but online bookings are expected to grow at a 5.4% annual rate.

(Source: grandviewresearch.com)

In 2022, the biggest group of people renting vacation homes were those aged 25–34, making up 30.9% of the market. The second-largest group was people aged 35–44, who accounted for 25.5% of the market.
The user penetration rate for 2023 is expected to be 18.3%, but this is forecasted to drop slightly to 18.1% by 2027.
The countries with the highest user penetration in 2023 are expected to be Qatar, Spain, Estonia, France, and Italy.
In 2022, business travel was expected to stay down by over 20% for most of 2023, with only 58% of meetings and events taking place. This trend is still expected to continue.
Business travel is projected to struggle to reach even 80% of the levels seen in 2019 during 2022–2023.
In 2022, there were more than 2.9 million vacation rental hosts worldwide, and in 2021, there were about 100,000 rental listings.
Europe has the largest share of the vacation rental market, followed by Asia Pacific and North America. Australia is expected to have the fastest growth, with a 6.6% annual growth rate from 2023 to 2030, and China has the largest vacation rental revenue in Asia.

Vacation Rental Revenue Statistics

As we move through 2023, the vacation rental industry continues to show growth and strength, even with some challenges.
The Average Daily Rate (ADR), which tracks how much money is earned per rental unit each day, is expected to go up by 2% in 2023 compared to 2022. This small increase suggests the market is stable, with property values and rental prices continuing to rise at a steady pace.
Revenue Per Available Rental (RevPAR) is another key metric used to measure the financial success of the vacation rental market.
According to the 2023 US Mid-Year Short-Term Rental Outlook by AirDNA, both the ADR and occupancy rates are slightly improving. However, this doesn't lead to a big increase in RevPAR for 2023.
Still, the forecast shows some progress, with RevPAR expected to be -1.1%, an improvement from -1.6% the previous year.

(Reference: truelist.com)

In 2024, RevPAR is expected to stabilize, as small drops in occupancy will likely be offset by higher ADR.
The split between online and offline bookings reflects how travelers prefer to book their stays and how hosts need to adjust to these changes.
In 2023, the ratio of online to offline bookings is expected to be 78:22, showing that most people are booking through digital platforms. This is because online booking is easier, faster, and offers more options.
By 2027, 83% of all vacation rental market revenue is expected to come from online bookings.
This trend emphasizes the need for hosts and platforms to focus more on improving their online services to meet customer needs.
However, offline bookings still have their place for those who prefer to book the traditional way.
Several big platforms lead the vacation rental market, offering various properties and experiences to travelers worldwide.
In 2022, the most downloaded online travel agency (OTA) apps in the U.S. were:

1. com: 17.1%
2. VRBO: 16.8%
3. Expedia: 16.6%
4. Airbnb: 13.9%
5. Hopper: 12.8%

These platforms have shaped the vacation rental industry, helping hosts and guests connect for seamless bookings and travel experiences around the world.

Guest Preferences And Behaviors In Vacation Rentals Statistics

Nearly 45% of travelers choose vacation rentals instead of hotels for their trips.
82% of guests say cleanliness is the most important factor when picking a vacation rental.
Around 69% of guests prefer vacation homes that have a pool.
49% of guests like to book directly with the owner of the vacation rental.
25% of vacation rental managers use smart home technology to improve guest experiences.

(Source: doorloop.com)

Nearly 59% of guests think photos are the most important thing when booking a vacation rental.
48% of millennials and 30% of baby boomers have stayed in a vacation rental.
40% of guests want vacation rentals that allow pets.
Almost 52% of vacation rental guests prefer properties with Wi-Fi.
63% of guests check reviews before booking a vacation rental.
Roughly 28% of guests like to have a full kitchen in their rental.
36% of vacation rental guests choose their stay based on location.
Almost 57% of guests prefer vacation rentals with a washer and dryer.

Vacation Rental Statistics by Demographics

(Reference: enterpriseappstoday.com)

On average, 50.6% of people who rent vacation homes are men, while 49.4% are women.
The largest group of renters is between the ages of 25 to 34 years.
3% of renters are aged 18 to 24 years, and 25.5% are between 35 to 44 years.
Renters aged 45 to 54 years make up about 17%, and those aged 55 to 64 years make up 10.4%.

Vacation Rental Ownership and Host Statistics

Nearly 6% of vacation rental owners purchased their properties with the goal of earning income.
43% of vacation rental owners manage all their rentals themselves, and 38% of people who rent a second home do the same.
The U.S. has 9 million second homes, with 25% of them being professionally managed and used as rental properties.
6% of buyers and 33% of vacation homeowners bought properties to make income from rentals.

(Reference: doorloop.com)

Almost 33% of vacation rental owners bought homes in resort areas, 24% in rural areas, and 18% in small towns.
33% of vacation rental owners bought properties near the beach, 21% on lakefronts, and 15% in the countryside.
Generally, 34% of property investors purchased homes in suburban areas, 24% in small towns, and 19% in city centers.
Nearly 63% of investors and 52% of vacation rental owners bought single-family detached homes.
49% of vacation home buyers and property managers plan to use their second homes as family retreats.
45% of second-home buyers intend to rent out their property to earn money rather than to sell or appreciate.

Conclusion

Since the lockdown, the vacation rental industry has been growing and is expected to keep expanding from 2022 and beyond. People from all over the world are now booking their trips in advance, even with the ongoing pandemic. The industry has also seen a big rise in remote workers choosing vacation rentals. Pet-friendly vacation rentals are also in high demand.

For remote and hybrid workers, taking two vacations a year is important for their mental health and maintaining a good work-life balance. After reading these vacation rental facts, make sure to plan and book that long family vacation!

Vacation Rental Statistics By Growth, Sustainability, Users, Revenue, Demographics and Facts