Extended Stay Housing Rental Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Extended Stay Housing Rental Market is estimated to be valued at USD 95.4 billion in 2025 and is expected to reach USD 166.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.4% from 2025 to 2032. This significant growth highlights the increasing demand for flexible, longer-term accommodation options driven by evolving work patterns, increased travel for business, and a rise in remote work culture.

A key market trend is the growing preference for extended stay rentals among professionals and millennials seeking cost-effective and convenient housing solutions. Additionally, the integration of technology such as smart home features and streamlined booking platforms is enhancing customer experience. The market is also witnessing expansion in tier-2 and tier-3 cities, propelled by urbanization and the rise of gig economy workers, further driving the adoption of extended stay housing rentals globally.

Segmental Analysis:

By Property Type: Serviced Apartments Drive Market Leadership Through Flexibility and Amenities

In terms of By Property Type, Serviced Apartments contribute the highest share of the Extended Stay Housing Rental Market owing to their unique combination of residential comfort and hotel-like services. This segment appeals greatly to travelers seeking long-term accommodation with the convenience of fully furnished apartments, equipped kitchens, and housekeeping services, enabling guests to maintain a home-like environment while away. The flexibility offered by serviced apartments, such as various lease durations and customizable service packages, caters well to diverse customer needs, especially for stays extending beyond traditional hotel lengths. Additionally, the rise of remote work and digital nomadism has amplified demand for such spaces, where guests can comfortably live and work without compromising on amenities or location. The competitive pricing model, when compared to hotels, further enhances their attractiveness, especially in urban centers and business hubs. Moreover, with increasing urbanization and globalization, serviced apartments are strategically located in proximity to key commercial districts, making them a preferred choice for business travelers who prioritize ease of commute alongside space and privacy. The integration of advanced technology, such as contactless check-ins and smart home features, enhances guest experience, reinforcing the segment's dominance in the extended stay market.

By End User: Business Travelers Lead Growth Due to Increasing Corporate Mobility and Travel Needs

In terms of By End User, Business Travelers contribute the highest share of the Extended Stay Housing Rental Market, primarily driven by the ongoing globalization of businesses and the consequent rise in corporate travel. This user group often requires longer stay accommodations near business districts or corporate offices, making extended stay housing a practical solution that offers both comfort and utility. Business travelers value the privacy and amenities that come with extended stay rentals, such as kitchen facilities, workspaces, and reliable internet connectivity, which are critical for balancing work and personal life during extended assignments or projects. Additionally, as companies increasingly implement cost-efficient travel policies, extended stay rentals provide a more economical choice than hotels for long durations, balancing corporate budgets without sacrificing guest comfort. Corporate relocation, project-based assignments, and training programs further intensify demand from this segment, as these travelers seek stable accommodation solutions that offer a sense of normalcy away from home. The convenience of flexible booking options tailored to corporate requirements, alongside partnerships between extended stay providers and companies, supports the dominance of business travelers within this market. Employee wellness and productivity considerations prompt businesses to prefer accommodations that foster a comfortable living environment, thereby sustaining strong demand from this segment.

By Distribution Channel: Direct Booking Prevails Due to Cost Efficiency and Enhanced Customer Loyalty

In terms of By Distribution Channel, Direct Booking accounts for the largest share of the Extended Stay Housing Rental Market, propelled by the cost advantages and control it offers to both providers and customers. Direct booking channels eliminate intermediary fees typically associated with online travel agencies or travel agents, allowing property owners and managers to offer more competitive pricing, discounts, or customized packages to guests. This cost-effectiveness appeals to both leisure and business travelers, particularly those planning longer stays where overall savings accumulate significantly. Furthermore, direct engagement between providers and customers enables personalized communication, which enhances guest experience and builds stronger loyalty. Providers can tailor their offerings, respond swiftly to guest needs, and implement flexible cancellation or modification policies, factors that are particularly advantageous for extended stay clients requiring adaptability. The rise of digital platforms and mobile apps has made direct booking increasingly user-friendly, allowing travelers to seamlessly explore availability, compare options, and secure bookings without third-party reliance. In addition, direct communication facilitates the promotion of exclusive benefits such as loyalty programs, upgrades, or bundled services that incentivize repeat stays. The direct booking channel also supports better data collection and analytics for service providers, enabling continuous improvement and targeted marketing, which ultimately fuel market sustainability and growth.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Extended Stay Housing Rental Market is driven primarily by the mature real estate infrastructure, a well-established hospitality ecosystem, and high demand from corporate travelers, relocated employees, and long-term project teams. The region benefits from supportive government policies that encourage real estate development and investment, alongside a robust economy that drives mobility. Major industry players such as Marriott International, with its Residence Inn brand, and Extended Stay America have cemented their presence through extensive portfolios and strategic partnerships. The highly developed trade dynamics and connected urban centers contribute to sustained occupancy rates and a reliable demand pipeline. The integration of technology in booking platforms and customer management also enhances market efficiency and customer satisfaction.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the Extended Stay Housing Rental Market, fueled by rapid urbanization, increasing expatriate populations, and growing middle-class segments seeking affordable and flexible housing solutions. Emerging government initiatives to boost tourism, foreign direct investment, and smart city developments have led to favorable conditions for both domestic and international operators. Countries like India, China, and Southeast Asian nations offer vast opportunities supported by ongoing infrastructure developments and a young, mobile workforce. Notable companies such as Oakwood and Ascott Limited have expanded aggressively into Asia Pacific, leveraging local partnerships to scale quickly and cater to diverse market needs. The market ecosystem here is characterized by increasing demand from business travelers, digital nomads, and students, combined with evolving regulatory frameworks aimed at streamlining licensing and rental norms.

Extended Stay Housing Rental Market Outlook for Key Countries

United States

The United States leads the global extended stay market with a strong presence of major branded players such as Marriott's Residence Inn, Extended Stay America, and Hilton's Homewood Suites. The country's extensive corporate relocation market, technology-driven booking amenities, and a large volume of business travel considerably support market growth. Urban centers like New York, Los Angeles, and Houston present high demand fueled by diverse economic activities. Additionally, favorable zoning laws and government incentives on real estate investments stimulate new property developments and renovations in this segment.

India

India's extended stay market is rapidly evolving owing to accelerated urban migration and digital economy expansion. Government policies like the Smart Cities initiative and ease of doing business reforms have contributed to creating a more investor-friendly environment. Key players including Oakwood and local firms such as Zostel are capitalizing on opportunities by providing affordable, flexible, and tech-enabled accommodations catering to IT professionals, startups, and business travelers. The presence of numerous multinational corporations further augments demand, especially in tech hubs like Bangalore, Hyderabad, and Pune.

China

China continues to lead Asia Pacific's extended stay market with significant contributions from domestic giants and international operators like Ascott Limited and Frasers Hospitality. Government support through urban development plans and relaxed hospitality regulations enhances supply. The country's growing middle class and the rising trend of long-term business assignments drive demand, particularly in cities like Shanghai, Beijing, and Shenzhen. Integration of smart technology in operational management and guest services has become a distinguishing factor among leading providers.

Germany

Germany's extended stay market benefits from a strong industrial and manufacturing base that necessitates long-term housing for skilled workers and engineers. The government encourages rental housing investments through favorable tax regimes, while strict building codes ensure safety and quality standards. Key players such as Adina Apartment Hotels and Citadines operate with focus on business travelers and expatriates in cities like Berlin, Frankfurt, and Munich. Germany's central location in Europe also supports transnational corporate mobility, enhancing demand across the region.

Brazil

In Brazil, the extended stay market growth is propelled by increasing international business activities and infrastructure projects. Local companies, alongside international brands, are making inroads into urban areas such as São Paulo and Rio de Janeiro by offering cost-effective and service-rich extended stay options. Although faced with regulatory challenges, recent reforms aimed at simplifying permit processes have started to open up the market. Economic diversification and rising tourism are additional factors stimulating demand from both leisure and corporate travelers.

Market Report Scope

Market Segmentation

Property Type Insights (Revenue, USD, 2020 - 2032)

• Serviced Apartments
• Corporate Housing
• Aparthotels
• Extended Stay Suites
• Others

End User Insights (Revenue, USD, 2020 - 2032)

• Business Travelers
• Relocating Families
• Medical Tourists
• Leisure Travelers
• Others

Distribution Channel Insights (Revenue, USD, 2020 - 2032)

• Direct Booking
• Online Travel Agencies
• Corporate Agreements
• Travel Agents
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Oakwood Worldwide
• The Ascott Limited
• Aimbridge Hospitality
• Blueground
• Extended Stay America
• Sonder Corp
• BridgeStreet Global Hospitality
• Zeus Living
• Staybridge Suites
• Marquis
• Gables Residential
• Churchill Living
• Lyric Hospitality
• AKA Extended Stay
• Sonder Living
• Oakwood Premier
• Reside Developments
• The Guild