The vacation rental market is estimated to be valued at US$ 79.34 Bn in 2025 and is expected to reach US$ 117.03 Bn by 2032, growing at a compound annual growth rate (CAGR) of 5.7% from 2025 to 2032.
The vacation rental market has seen significant growth over the past few years. As remote working becomes more common, many people are choosing to work from various vacation destinations rather than being confined to one location. This has increased the demand for short-term and long-term vacation rental properties. Additionally, the sharing economy model adopted by major platforms like Airbnb have made it much easier for property owners to list and rent their spaces, driving the availability of vacation rentals. The pandemic further accelerated this trend as people sought temporary housing in less crowded areas to ride out lockdowns and restrictions. Going forward, developments like improved rural broadband connectivity and the flexibility of hybrid work models are expected to further support growth in the vacation rental market.
Market Dynamics:
The vacation rental market is driven by the rising popularity of the sharing economy and remote work culture. Platforms like Airbnb have greatly reduced transaction costs for property owners to participate in the short-term rental market. The pandemic boosted the demand as people looked for accommodations away from crowded cities during lockdowns. However, overregulation and strict laws in some locations pose challenges to growth. Opportunities lie in upgrading local properties to cater to changing traveler needs and integrating new amenities like high-speed internet. The market is also poised to benefit from the ongoing trend of distributed work which is expected to give a lasting boost to long-term stays beyond the pandemic.
Key Features of the Study:
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook