Short-Term Property Rental Services Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Short-Term Property Rental Services market is estimated to be valued at USD 218.7 billion in 2025 and is expected to reach USD 388.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.9% from 2025 to 2032. This robust growth reflects increasing consumer preference for flexible and convenient accommodation options, fueled by rising travel and tourism activities, as well as the expansion of digital platforms that facilitate short-term rental bookings worldwide.

Current market trends indicate a significant shift towards technology-driven solutions in the short-term rental space, including the integration of AI-powered pricing tools and seamless mobile booking experiences. Additionally, there is a growing emphasis on sustainability and eco-friendly accommodations, catering to the environmentally conscious traveler. The rise of remote work and digital nomadism also continues to boost demand, pushing property owners and platforms to adopt more flexible, long-term rental options alongside traditional short-term stays.

Segmental Analysis:

By Property Type: Dominance of Entire Home/Apartment Driven by Privacy and Flexibility

In terms of By Property Type, Entire Home/Apartment contributes the highest share of the market owing to travelers' increasing preference for privacy, space, and independence during short-term stays. Unlike private or shared rooms, entire homes or apartments offer a self-contained living environment that caters to diverse traveler needs, including families, groups, and long-stay guests. The rise in remote work culture and extended stays has further amplified demand for entire units, as travelers seek comfortable work-life balance setups with amenities like kitchens, dedicated workspaces, and multiple bedrooms. Additionally, the surge in health and safety concerns post-pandemic has shifted preferences toward entire properties where guests can minimize interactions with others, reducing exposure risk. The versatility of such properties also appeals to leisure and business travelers who value the ability to cook, entertain, or relax in a home-like atmosphere rather than confined hotel rooms or shared accommodations. The growth of platforms offering entire homes and apartments, along with easier access to verified and professionally managed listings, reinforces this segment's prominence. This segment benefits from increasing consumer awareness about the advantages of booking entire units over shared or private rooms, making it a favored choice within the short-term rental ecosystem.

By Booking Type: Online Booking Flourishes on Convenience and Digital Adoption

In terms of By Booking Type, Online Booking contributes the highest share of the market, primarily driven by enhanced digital accessibility and evolving consumer behavior favoring seamless, contactless transactions. The proliferation of mobile apps and websites dedicated to short-term rentals has revolutionized how travelers plan and secure accommodations, allowing instant browsing, secure payment, and immediate confirmation. Online booking platforms also provide comprehensive filtering options, user reviews, and transparent pricing, which significantly reduce friction and uncertainty for users. The convenience of comparing multiple properties and booking instantly while on the move has catalyzed the adoption of online channels over traditional offline methods such as travel agencies or walk-in rentals. Furthermore, integration of AI-based recommendation engines and personalized marketing on these online platforms has improved user experience, fostering higher conversion rates. Increasing trust in digital transactions backed by secure payment gateways has also mitigated concerns regarding fraud or cancellations, encouraging more users to rely on online bookings. Coupled with the global expansion of internet and smartphone penetration, especially in emerging markets, online booking has become the default choice for a wide demographic spectrum, making it the pivotal driver of short-term rental bookings.

By End User: Business Travelers Lead Demand Through Need for Flexible and Cost-Effective Lodging

In terms of By End User, Business Travelers contribute the highest share of the market due to their need for flexible, convenient, and cost-effective lodging during work-related trips. Unlike traditional hotels, short-term rental properties provide business travelers with additional space conducive to productivity, such as separate work areas, meeting room possibilities, and home-like comforts that hotels often lack. The ability to book entire apartments or homes also allows business travelers to host small team meetings or collaborate in a more relaxed environment, which enhances work efficiency and satisfaction. Cost considerations are also instrumental in this segment's growth; short-term rentals can offer competitive pricing with options for longer stays, directly matching the needs of extended business trips without compromising comfort. Moreover, the rise of remote work and hybrid working arrangements has blurred the lines between business travel and personal stay, making short-term rentals a preferred option for professionals seeking a balance between work and leisure. Platforms have also introduced business travel-specific services including streamlined billing, loyalty programs, and dedicated support, further attracting corporate clientele. Enhanced connectivity, easy access to key business hubs, and flexible cancellation policies cater perfectly to the dynamic schedules and requirements of business travelers, solidifying their dominant position within the short-term property rental market.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Short-Term Property Rental Services market is driven by a mature and well-established ecosystem, supported by advanced technology infrastructure and widespread adoption of digital booking platforms. The region benefits from a highly active travel and tourism industry, complemented by strong government support through flexible regulations encouraging short-term rentals, especially in urban and tourist-heavy areas. Key markets such as the U.S. and Canada house major industry players like Airbnb, Vrbo, and Booking Holdings, whose robust presence and continuous innovation in customer experience and property management technology have fortified the regional dominance. Moreover, the integration of smart home technologies and collaboration with local governments to regulate and sustain the rental market plays a crucial role in maintaining North America's leading position.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in Short-Term Property Rental Services, propelled by rapid urbanization, a burgeoning middle class with rising disposable incomes, and growing inbound tourism across emerging markets like Southeast Asia and parts of East Asia. Government initiatives to boost tourism infrastructure, paired with relatively less stringent or newly evolving regulatory frameworks, have opened fertile ground for market expansion. In countries such as China, Japan, and India, domestic platforms like Tujia and OYO Rooms complement global giants, catering to unique regional preferences and driving localized innovation. The expansion of internet penetration and smartphone usage also facilitates easy access to rental services, while investments in transportation and hospitality industries further enhance market uptake.

Short-Term Property Rental Services Market Outlook for Key Countries

United States

The United States' market is characterized by a highly competitive landscape dominated by Airbnb and Vrbo, both of which have revolutionized property rental through technology-enabled platforms and customer trust. Government policies vary by state and city but tend to support regulated growth, balancing homeowner interests and community concerns. The market benefits from a large inventory of properties in major urban centers and vacation spots, making it the world's most recognizable short-term rental market. Enhanced focus on data security, consumer protections, and sustainable tourism practices underscore ongoing industry efforts here.

China

China's short-term rental market continues to expand with the rise of local industry leaders such as Tujia and Xiaozhu, which have tailored services to Chinese consumer preferences and regulatory nuances. Increasing domestic travel, combined with digital payment platforms like Alipay and WeChat Pay integration, facilitates seamless user experiences. Government efforts to promote tourism in less urbanized areas also boost the appeal of property rentals beyond traditional hotspots. However, the sector navigates complex regulatory environments relating to property ownership and short-term lease laws, impacting market dynamics.

Japan

Japan's market is marked by unique cultural and regulatory characteristics, with companies like OYO Rooms and Rakuten Lifull Stay playing significant roles in bridging the gap between traditional hospitality and short-term property rentals. Government policies promoting inbound tourism ahead of major international events have enhanced infrastructure and eased some limitations on short-term renting. The market also benefits from high standards of service and safety, with technology adoption improving booking convenience. Challenges persist around compliance with stringent local regulations and maintaining harmony in residential neighborhoods.

India

India's market is experiencing robust expansion driven by increased domestic tourism and fast-growing digital platforms such as OYO and MakeMyTrip. The government's digital India initiatives and hospitality sector reforms encourage investment and infrastructure development, broadening opportunities for short-term rentals outside major metros. The fragmented market includes numerous smaller players catering to a diverse range of property types, from urban apartments to rural homestays. Regulatory clarity and consumer trust-building remain critical to unlocking further potential in this rapidly evolving market.

United Kingdom

The UK's market maintains steady growth supported by strong tourism in cities like London, Edinburgh, and Bath, with companies such as Airbnb and Booking.com leading the charge. Brexit-related trade dynamics have introduced some complexities around business operations and regulatory adjustments. Nonetheless, government policies have focused on balancing the interests of residents and short-term rental hosts, incorporating taxation and licensing rules to sustain market health. The UK market is characterized by high consumer awareness and demand for quality assurance, driving continuous innovation in service delivery and property management.

Market Report Scope

Market Segmentation

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

• Entire Home/Apartment
• Private Room
• Shared Room
• Vacation Homes
• Others

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

• Online Booking
• Offline Booking
• Others

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

• Business Travelers
• Leisure Travelers
• 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

• Airbnb Inc.
• Booking Holdings Inc.
• Expedia Group Inc.
• Vacasa LLC
• Sonder Corp.
• Tujia Holdings Limited
• OYO Rooms
• Trip.com Group Limited
• Agoda Company Pte. Ltd.
• RedAwning
• Plum Guide
• Expedia Local Expert
• HotelsCombined
• Casamundo
• StayAlfred Inc.
• TurnKey Vacation Rentals
• Wyndham Destinations
• VacayHome Connect
• Ctrip.com International Ltd.
• Novasol A/S