The vacation rental industry is booming.
In 2023, global revenues surpassed $19 billion, and by 2025 the market is projected to hit $20.6 billion.
Millions of travelers now choose vacation rentals for their affordability, privacy, and unique experiences, reshaping the entire hospitality landscape.
This report explores the most important statistics, trends, and insights driving the future of vacation rentals.
Top Vacation Rental Stats – Editor’s Picks
- The vacation rental industry is projected to reach $20.6 billion in 2025.
- Annual U.S. vacation rental revenue is expected to hit $20 billion by 2025.
- Revenue from vacation rentals topped $19 billion in 2023.
- 1 in 8 people stayed in a vacation rental in 2021.
- Average daily revenue for short-term rentals in the U.S. is $300.
- The average Airbnb host in the U.S. earns over $13,000 annually.
- 58% occupancy rates were recorded for vacation rentals in 2022.
- Around 70% of guests book vacation rentals online.
How Fast Is the Vacation Rental Market Growing?
The vacation rental sector has seen exponential growth over the past decade. Marketplaces like Airbnb, Vrbo, and Booking.com have made it easy for property owners to list accommodations and for travelers to book unique stays.
Bram Gallagher, Director of Economics and Forecasting at AirDNA, points to shifting demand:
Since February, demand for six‑plus bedroom properties has grown more than 13 times faster than for single‑bedroom listings, and about four times faster than for two‑bedroom homes.
- The industry was worth $15.3 billion in 2021, rising sharply in the post-pandemic years.
- Projections suggest the global market could surpass $87 billion by 2030.
- The short-term rental market in North America is expected to return to pre-pandemic levels by 2025.
- In Asia, vacation rentals grew by 22%, showing strong regional expansion.
- Globally, vacation rentals now make up 12% of all lodging revenue.
Global Vacation Rental Market Growth
| Year | Market Size (USD) | Growth vs Previous Year |
|---|---|---|
| 2021 | $15.3 billion | — |
| 2023 | $19.0 billion | +24% |
| 2025 | $20.6 billion | +8% |
| 2030 (forecast) | $87 billion | +322% |
Why Do Travelers Choose Vacation Rentals?
Travelers increasingly prefer vacation rentals for privacy, affordability, and unique experiences.
- Over 80% of guests consider vacation rentals safer and more private than hotels.
- 90% of vacation rental guests say they would recommend the experience to others.
- Roughly 25% of bookings come from repeat customers, showing strong loyalty.
- Around 60% of Airbnb bookings are for stays longer than a week.
Joel Berner, Senior Economist at Realtor.com, underscores the market’s strength:
STRs do not seem to be feeling this pinch this summer, with the number of nights stayed exceeding last year.
How Much Do Vacation Rental Hosts Earn?
Vacation rentals have become a major income stream for property owners.
- A 3-bedroom vacation rental can earn nearly $98,700 per year.
- The median monthly income for owners is about $659.
- More than 35% of property owners manage multiple rentals, building small portfolios.
- The industry includes over 1.3 million rental listings worldwide, with more than 4 million hosts active on Airbnb alone.
Host Earnings and Occupancy
| Metric | Value |
|---|---|
| Average U.S. host annual earnings | $13,000–$14,000 |
| Median monthly income | $659 |
| Average daily revenue per property | $300 |
| 3-bedroom annual revenue | $98,700 |
| Occupancy rate (2022) | 58% |
How Is Technology Shaping the Vacation Rental Industry?
Technology has played a vital role in shaping the vacation rental industry.
- Roughly 40% of property managers now run their own direct booking websites.
- 70% of bookings are made online, reinforcing the dominance of digital platforms.
- Guests increasingly expect seamless digital experiences, from instant booking to contactless check-ins.
Brian Chesky, CEO of Airbnb, reflects on the importance of staying connected with guests:
We went from us talking to customers, to hiring people to talk to customers, to people who manage people who manage people who talk to customers.
What Other Data Is Shaping the Industry?
Beyond the core growth and revenue figures, several additional insights highlight the changing face of vacation rentals worldwide:
- The global vacation rental market is expected to generate $105.7 billion in revenue by the end of 2025 (Stayfi).
- Other forecasts suggest the market is worth $97.85 billion in 2025, with potential to reach $134.26 billion by 2034 (Precedence Research).
- Weekly rentals accounted for $35.26 billion in 2025, representing 31.3% of the market, largely driven by family tourism.
- Nightly rentals dominate the market, valued at $56.18 billion (49.8%) in 2025, with steady growth projected.
- The largest markets by rental type in 2025 are the U.S. ($6.73 billion), the UK ($3.96 billion), and China ($3.25 billion).
- The average U.S. Airbnb host earns about $14,000 per year, with average monthly earnings around $4,300.
- Airbnb generated $11.1 billion in revenue in 2024, up from $9.92 billion in 2023.
- In 2023, Airbnb recorded 448 million nights and experiences booked, up ~14% from 2022.
- The average length of stay on Airbnb in the U.S. increased from 3.7 to 4.1–4.4 nights, while stays of 28+ nights nearly doubled.
- In July 2025, U.S. short-term rentals saw a record 26.4 million nights stayed, with an average daily rate of $351 and RevPAR up 5.7% year-over-year.
Regional Market Comparison (2025)
| Country | Market Size (USD) | Share of Global Market |
|---|---|---|
| United States | $6.73 billion | 33% |
| United Kingdom | $3.96 billion | 19% |
| China | $3.25 billion | 16% |
| Rest of World | $7.6 billion | 32% |
Frequently Asked Questions (FAQ)
Are vacation rentals safer than hotels?
Yes, over 80% of travelers believe vacation rentals are safer and more private compared to hotels.
How profitable are vacation rentals for hosts?
Hosts can earn anywhere from a few hundred dollars per month to nearly $100,000 annually depending on property size, location, and demand.
How do most guests book vacation rentals?
About 70% of vacation rental bookings are made online through platforms like Airbnb, Vrbo, or direct booking websites.
What is the future of the vacation rental industry?
The market is expected to reach $20.6 billion in 2025 and continue expanding toward $87 billion globally by 2030.
Why do travelers prefer vacation rentals over hotels?
Travelers cite affordability, unique experiences, privacy, and flexibility as the main reasons for choosing vacation rentals.
Conclusion
The vacation rental industry is not just a hospitality trend—it is a long-term transformation of how people travel. With billions in revenue, millions of listings, and strong traveler adoption, the sector is set to keep expanding. Looking ahead, vacation rentals are expected to play an even larger role in global tourism, offering travelers more personalized, affordable, and flexible accommodation options.
Sources
- StayFi – Vacation Rental Statistics 2025
- iGMS – Short-Term Rental Market Analysis
- Global Growth Insights – Vacation Rental Market Report
- Localbird – How Much Money Can You Make with Airbnb?
- AirDNA – How Much Can You Make on Airbnb?
- Airbnb Newsroom – Q4 2024 Financial Results
- Analyzify – Airbnb Statistics
- Backlinko – Airbnb Stats
- ArXiv – Airbnb Length of Stay Trends
- New York Post – High Demand for Short-Term Rentals Offers Big Return
- Safely – Expert Insights from Top Short-Term Rental Leaders
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