Short-term rental statistics 2024
Short-term rentals, also known as vacation rentals, have gained a lot of attention and popularity through high-profile platforms like Airbnb and Vrbo. Most short-term rentals provide temporary, overnight accommodations lasting less than 30 days. They may consist of a private room in a dwelling or an entire home or property.
In many states and cities, short-term rentals are increasingly becoming subject to rules and regulations, including penalties for operating without a short-term rental permit.
The U.S. short-term rental market is projected to grow to about $81.63 billion by 2033.
Jump to insightNearly 2.5 million rental listings and over 785,000 individual hosts facilitated 207 million nights spent in U.S. short-term rentals in 2023.
Jump to insightShort-term vacation rentals will likely add about 8 million users within the next five years as demand and accessibility grow.
Jump to insightThe average cost per night for a U.S. short-term rental was over $300 in 2023. However, prices can be lower for smaller accommodations, such as a single room.
Jump to insightPeople ages 25 to 34 (30%) and 35 to 44 (27.6%) were the most likely to rent a U.S. short-term listing in 2023.
Jump to insightShort-term rental statistics
Short-term rentals have seen incredible growth in the last few years, boosted by post-pandemic demand. Reduced inflation and higher wages in the coming years will allow more consumers to choose a vacation rental.
- In 2023, Americans showed a lot of interest in international short-term rentals. Demand for international locations increased by 17% that year, whereas domestic short-term rentals increased by only 4.5%.
- The most popular sales channel for short-term rentals is online. Only around 21% of short-term rental transactions occur offline.
- Though urban short-term rental locations experienced strong demand growth in 2023, that growth is expected to slow in 2024. Meanwhile, short-term rentals in coastal, mountain, suburban and other locations are expected to see an uptick in demand this year.
- Some of the biggest companies in the short-term rental market include Airbnb, Vacasa, Sonder and Lyric.
Short-term rental market size by year
In the U.S., the market size for short-term rentals was valued at $29.09 billion in 2023. Between 2023 and 2024, the market is estimated to grow by over $3 billion, reaching a projected $32.25 billion.
In 2023, North America dominated the global short-term rental market with a 37% market share. North America, specifically the U.S., owes this in large part to the success of businesses like Airbnb and HomeAway.
By 2033, the size of the short-term rental market in the U.S. is projected to reach $81.63 billion, a significant rise from 2024 estimates with a compound annual growth rate of 11%.
What are the key services of short-term rentals?
A 2021 survey conducted by Cinch Home Services revealed several interesting insights into short-term rental customers’ service preferences.
For example, the average guest who books a short-term rental values price, location and cleanliness over amenities and decor. Short-term rental landlords cited enhanced cleaning and lenient cancellation policies as features that are most likely to attract guests to short-term rentals, with 70% and 49% of landlords citing those two features, respectively.
When it comes to common issues with short-term rentals, guests reported five main problems with bookings. Poor internet connections were reported by 39% of short-term rental guests, while poor property maintenance (38%), lack of cleanliness (33%), poor parking (23%) and difficult landlords (23%) rounded out the top five complaints cited. For a successful listing, it is therefore particularly important for hosts to pay attention to these areas:
- Internet connectivity
- Maintenance
- Cleanliness and hygiene
- Parking options and availability
- Customer service
Potential guests at short-term vacation rentals also appreciate price comparison tools, like Google’s travel comparison feature. Although not all short-term rental platforms integrate their properties into the Google vacation rental comparison tool, it’s nonetheless a useful way to quickly compare prices for multiple listings in the same area.
How many people participate in short-term rentals?
Short-term rentals are popular accommodation options for many people in the U.S. In 2023, there were 2,459,260 available vacation rental listings and over 785,000 individual U.S. hosts. Travelers stayed a total of 207 million nights in 2023 across all of these listings.
In the U.S., the total number of vacation rental users plummeted in 2020 during the height of the COVID-19 pandemic and its associated restrictions, down almost 20 million from the year prior. However, by 2022, the number of users had already grown past pre-pandemic levels to 60.92 million. Projections show that short-term rentals in the U.S. will see nearly 8 million more users added within the next five years.
How much does a short-term rental cost?
Short-term vacation rentals vary in price depending on their location and size. Other considerations, including events or attractions in a rental’s vicinity, could also bump up pricing.
On average, a guest at a short-term rental in the U.S. will pay a little over $300 a night. However, a single- or shared-room rental offers more affordability, averaging less than $100 per night. Costs typically increase with the size of the property.
Short-term renter demographics
Consumers between the ages of 25 and 34 form a plurality of short-term rental customers, making up 30% of those who patronize short-term rentals in the U.S. Just behind the 25-to-34 age group were 35- to 44-year-olds, with 27.6% of bookings.
The gender of short-term renters in the U.S. in 2023 was fairly evenly split, at 55% men and 45% women. However, a 57% majority of short-term rental guests in 2023 had high incomes. The share of high-income guests in the short-term rental market exceeded the combined shares of low- and medium-income guests.
FAQ
Why are short-term rentals popular?
Short-term rentals are popular for a few reasons. Many short-term rentals offer amenities that are uncommon in hotels, like fully stocked kitchens, which appeal to travelers who prefer preparing their food instead of dining out.
Furthermore, short-term rentals may be suitable for traveling families looking for more space and privacy than a hotel can provide. They can also serve as interim accommodation for migrating families that are searching for long-term rentals or waiting for a moving company to deliver their furniture and appliances.
Are short-term rentals still profitable?
Profitability for short-term rentals depends a lot on location. Consumers may be more drawn to rentals in prime urban locations, especially those close to nightlife and cultural events. Property managers can expect to charge more for these types of locations, whereas suburban or rural listings outside of major urban networks will likely command lower rental rates.
Short-term rentals also have unpredictable occupancy, which may not make them a good investment for those seeking a steady income stream. Short-term rental occupancy rates may reliably fluctuate by season, but they can also change dramatically from year to year.
Is the short-term rental industry affected by recessions?
Based on historical trends, the short-term rental industry has shown resilience during recessions. Many consumers view short-term vacation rentals as being more affordable than hotels. They also might focus on domestic travel locations during a recession as opposed to international destinations.
Why are short-term rentals regulated?
As rent prices continue to increase in the U.S., regulation of short-term rentals helps prevent the reduction of long-term housing. A lower supply of long-term housing can push rents even higher for residents of a city. Regulation also promotes safety and health for guests and the surrounding communities.
Are short-term rentals good for the economy?
Despite assumptions about the impact of short-term rental properties on rent costs, they actually might have a minimal effect on rent increases, according to the Harvard Business Review. And short-term vacation rentals provide financial benefits for both travelers and hosts. Travelers can take advantage of more lodging choices and reduced lodging prices, while hosts’ property values tend to increase due to the greater investment required to maintain and upgrade short-term rental properties. Finally, short-term rentals also increase tax revenue.
References
- “Short-Term Vacation Rentals.” City of Hermosa Beach. Evaluated on July 21, 2024.Link Here
- “2024 U.S. Short-Term Rental Outlook Report.” AirDNA. Evaluated July 21, 2024.Link Here
- “Vacation Rentals - United States.” Statista. Evaluated July 20, 2024.Link Here
- "What are the Biggest Short-Term Rental Property Management Companies?" HelloData. Evaluated July 20, 2024.Link Here
- "Short-term Rental Market Size, Share, and Trends 2024 to 2033." Precedence Research. Evaluated July 20, 2024.Link Here
- “Survey: Short-term rental dreams and nightmares.” Cinch Home Services. Evaluated July 21, 2024.Link Here
- "Short-Term Rental Statistics You Need to Know." AirDNA. Evaluated July 20, 2024.Link Here
- Miller, K. "3 Pieces of Advice You Can Give Short-Term Rental Investors." National Association of Realtors. Evaluated July 20, 2024.Link Here
- Hernandez, A. "STRs: How Short-Term Rentals Can Handle a Recession." REIA of Oakland. Evaluated July 20, 2024.Link Here
- Calder-Wang, S., Farronato, C., & Fradkin, A. “What Does Banning Short-Term Rentals Really Accomplish?” Harvard Business Review. Evaluated July 21, 2024.Link Here
- “Economic Impact of Short Term Rental Restrictions.” Isle of Palms Chamber of Commerce. Evaluated July 21, 2024.Link Here
- “Friend or Foe? Understanding Short-Term Rental Regulations.” AirDNA. Evaluated July 21, 2024.Link Here
- “Airbnb vs Hotels: What’s the difference and which is better.” Skyscanner. Evaluated July 24, 2024.Link Here
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