The short-term rental market is exploding into a global powerhouse, projected to surge from an $85 billion industry to nearly $200 billion by the end of the decade.
Key Takeaways
- The global short-term rental market was valued at $85.10 billion in 2022 and is projected to reach $196.94 billion by 2030, growing at a CAGR of 11.1%
- In the US, short-term rentals generated $22.5 billion in host income in 2023
- Europe's short-term rental supply grew by 12% year-over-year in Q4 2023, reaching 3.2 million listings
- US average annual host revenue per listing was $14,000 in 2023
- Global STR ADR (average daily rate) rose 8% to $132 in 2023
- Top 10% US STR hosts earned over $50,000 annually in 2023
- US short-term rental occupancy rate averaged 54% in 2023
- Global average STR length of stay was 4.2 nights in 2023
- Peak season US STR occupancy hit 75% in summer 2023
- 65% of US cities have STR regulations as of 2023
- New York City banned most STR under 30 days since 2011, impacting 80% listings
- Barcelona phased out all STR licenses by 2028, removing 10,000 listings
- 72% of travelers prefer STR over hotels for longer stays
- 45% of millennials book STR exclusively vs 25% hotels
- Average STR guest age 35-44 years, 40% families
The short-term rental market is booming globally with strong growth and high host revenues.
Consumer Behavior
172% of travelers prefer STR over hotels for longer stays
Verified245% of millennials book STR exclusively vs 25% hotels
Verified3Average STR guest age 35-44 years, 40% families
Verified460% choose STR for home-like amenities like kitchens
Directional5US domestic STR trips 85% of bookings in 2023
Single source670% of STR bookers use mobile apps primarily
Verified7Repeat guests make up 40% of STR bookings globally 2023
Verified855% prioritize location over price in STR selection
Verified9Group travel (4+ people) 35% of STR stays 2023
Directional10Pet-friendly STR demand up 25% post-pandemic 2023
Single source1150% of business travelers used STR in 2023 for bleisure
Verified12Eco-friendly STR listings booked 20% more in 2023
Verified13Reviews influence 90% of STR booking decisions 2023
Verified14Last-minute bookings (<7 days) 30% of STR volume 2023
Directional15Female solo travelers STR preference 65% vs hotels 2023
Single source1675% of Gen Z seek unique STR experiences 2023
Verified17STR for events/weddings 15% of bookings up 10% 2023
VerifiedConsumer Behavior Interpretation
Short-term rentals have clearly become the modern traveler's chameleon, effortlessly adapting from a family's kitchen-filled home base and a millennial's exclusive go-to, to a business traveler's bleisure pad and the trusted choice for solo female adventurers, all while being booked last-minute on a phone by guests who relentlessly read reviews and increasingly demand pet-friendly, eco-conscious, and uniquely Instagrammable experiences.
Financial Performance
1US average annual host revenue per listing was $14,000 in 2023
Verified2Global STR ADR (average daily rate) rose 8% to $132 in 2023
Verified3Top 10% US STR hosts earned over $50,000 annually in 2023
Verified4European STR RevPAR increased 12% YoY to €110 in Q4 2023
Directional5US STR market share of lodging revenue hit 15% in 2023
Single source6Average Canadian STR nightly rate was CAD 200 in 2023, up 10%
Verified7Mexico City STR ADR reached $150 USD in 2023 peak season
Verified8London UK STR average revenue per listing $25,000 in 2023
Verified9Barcelona STR hosts earned €18,000 avg annually pre-regulation 2023
Directional10Australian Sydney STR RevPAR $250 AUD in 2023
Single source11Bali Indonesia STR ADR $120 USD, generating $40k avg revenue
Verified12Tokyo Japan STR nightly rate ¥20,000 avg in 2023
Verified13Dubai UAE STR revenue per listing $35,000 in 2023
Verified14New York City STR illegal revenue estimated $1.2B in 2023
Directional15Paris France STR ADR €180 during Olympics prep 2023
Single source16Miami US STR hosts avg $28,000 revenue 2023
Verified17Lisbon Portugal STR RevPAR €100 in 2023
Verified18Cape Town SA STR avg nightly $150 USD 2023
Verified19Rio Brazil STR revenue $15,000 avg per listing 2023
Directional20Bangkok Thailand STR ADR 2,500 THB in 2023
Single source21Global STR hosts number reached 5 million in 2023
Verified22US STR platform fees avg 14% of booking value 2023
Verified23Top markets saw 20% profit margins for STR in 2023
Verified24Nashville US STR avg revenue $40,000 in 2023
DirectionalFinancial Performance Interpretation
In a world where the average short-term rental host is making a solid $14,000, the game is clearly to aim for the top tier in a hot market, dodge regulators, and hope your city doesn't get picked for the Olympics before you've cashed in.
Market Growth
1The global short-term rental market was valued at $85.10 billion in 2022 and is projected to reach $196.94 billion by 2030, growing at a CAGR of 11.1%
Verified2In the US, short-term rentals generated $22.5 billion in host income in 2023
Verified3Europe's short-term rental supply grew by 12% year-over-year in Q4 2023, reaching 3.2 million listings
Verified4Asia-Pacific short-term rental market is expected to grow at the highest CAGR of 13.5% from 2023 to 2030
Directional5The number of active short-term rental listings worldwide reached 7.5 million in 2023
Single source6US short-term rental revenue increased by 18% YoY to $18.9 billion in 2022
Verified7Short-term rentals in Canada saw a 15% supply increase in 2023, totaling 250,000 listings
Verified8Latin America's STR market expanded by 20% in active listings from 2022 to 2023
Verified9Australia's short-term rental market grew to AUD 4.5 billion in 2023, up 14% YoY
Directional10UK short-term rentals increased by 10% in supply to 350,000 listings in 2023
Single source11Global STR occupancy rates averaged 52% in 2023, up from 48% in 2022
Verified12Mexico's STR market saw 25% YoY growth in revenue to $2.1 billion in 2023
Verified13Brazil STR listings grew 22% to 180,000 in 2023
Verified14Japan's inbound tourism drove 30% STR supply growth post-2022
Directional15Middle East STR market projected to grow at 12% CAGR to 2028
Single source16South Africa's STR revenue hit ZAR 5 billion in 2023, up 16%
Verified17New Zealand STR market rebounded with 18% growth in 2023
Verified18Turkey's STR listings doubled to 100,000 since 2020
Verified19India's STR market expected to reach $2 billion by 2025, CAGR 15%
Directional20Thailand STR supply grew 28% in 2023 to 120,000 listings
Single source21Vietnam's STR market expanded 35% YoY in 2023
Verified22Indonesia STR revenue up 40% to IDR 10 trillion in 2023
Verified23Philippines STR listings reached 50,000 in 2023, +25% YoY
Verified24Singapore STR market stabilized at 5,000 listings in 2023 after regulations
Directional25Malaysia STR growth at 20% to MYR 2 billion revenue 2023
Single sourceMarket Growth Interpretation
Despite a dizzying global surge that's turning spare rooms into cash cows and entire cities into hotel lobbies, the short-term rental market's explosive growth is a serious economic force, proving that the world's appetite for a 'local' experience is now an $85 billion industry hurtling toward $200 billion.
Operational Metrics
1US short-term rental occupancy rate averaged 54% in 2023
Verified2Global average STR length of stay was 4.2 nights in 2023
Verified3Peak season US STR occupancy hit 75% in summer 2023
Verified4Europe urban STR occupancy 48% vs rural 62% in 2023
Directional5Mexico Cancun STR avg occupancy 68% in 2023
Single source6London STR occupancy dropped to 55% post-Brexit trends 2023
Verified7Barcelona STR utilization 50% avg before 2023 ban
Verified8Australian Gold Coast STR occupancy 70% in 2023
Verified9Bali STR avg occupancy 65%, peaking at 85% high season 2023
Directional10Tokyo STR occupancy 60% with tourism rebound 2023
Single source11Dubai STR avg 72% occupancy in 2023
Verified12NYC legal STR occupancy under 40% due to regs 2023
Verified13Paris STR occupancy 58% avg 2023
Verified14Miami Beach STR peak occupancy 80% spring break 2023
Directional15Amsterdam STR occupancy fell to 45% after 30% cap 2023
Single source16Cape Town STR occupancy 62% in 2023
Verified17Rio STR avg 55% occupancy 2023
Verified18Bangkok STR occupancy 67% post reopening 2023
Verified19Nashville STR avg occupancy 65% music festival boosted 2023
Directional20Global STR booking lead time avg 28 days in 2023
Single source21US STR cancellation rate 15% in 2023
Verified22Average STR cleaning turnover time 2.5 hours per stay 2023
VerifiedOperational Metrics Interpretation
Despite local regulations, cancellations, and cleaning marathons, the global urge to flee home averaged out to a polite but firm half-occupancy, proving the short-term rental market is a resilient, sunburnt chameleon forever adapting to the whims of tourists and mayors alike.
Regulatory Impacts
165% of US cities have STR regulations as of 2023
Verified2New York City banned most STR under 30 days since 2011, impacting 80% listings
Verified3Barcelona phased out all STR licenses by 2028, removing 10,000 listings
Verified4Amsterdam capped STR at 30 nights/year per property since 2023
Directional5Paris limited STR to 120 days/year for primary residences 2023
Single source6London requires planning permission for STR over 90 days 2023
Verified7California AB-1036 requires STR registry statewide 2023
Verified8Florida banned local STR bans in 2023, affecting 20 counties
Verified9Hawaii Big Island set 60-day min stay for non-owner occupied 2023
Directional10San Francisco STR permits limited to 2016 levels ~5,000 in 2023
Single source11Berlin lifted STR ban in 2023 but requires registration
Verified12Lisbon capped new STR licenses in historic center 2023
Verified13Sydney NSW requires DA approval for STR >60 nights/year 2023
Verified14Bali Indonesia mandated local management for STR 2023
Directional15Dubai allows STR with DTCM license, 50,000+ registered 2023
Single source16Mexico CDMX limits STR to 180 days/year 2023
Verified17Rio banned STR in residential zones 2023
VerifiedRegulatory Impacts Interpretation
The global experiment in letting your home be a hotel has officially ended, with cities from New York to Bali now ruling that your guest room is not, in fact, a multinational corporation.
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