The united states short-term vacation rental market size is expected to grow from USD 68.75 billion in 2025 to USD 71.73 billion in 2026 and is forecast to reach USD 101.59 billion by 2031 at 7.21% CAGR over 2026-2031. This report is Segmented by Accommodation Type (Homes, Apartments, and More) by Booking Channel (OTAs, Direct Booking Websites, and More), by Traveler Type (Leisure, and More), by Stay Duration (Short, Medium, and Extended), by Management Type (Individual, and Professional), and by Geography (South, West, Northeast, and Midwest). The Market Forecasts are Provided in Terms of Value (USD).
Other drivers and restraints analyzed in the detailed report include:
Condominiums and Resort Condominiums are forecast to grow at a 7.9% CAGR through 2031, the fastest rate among accommodation formats. AvantStay’s Nexo Residences partnership in North Miami Beach aligns with this direction by combining flexible short-term occupancy with purpose-built operations, smart key access, strong connectivity, and resort-style amenities. This format gives professional managers more scalable operations than scattered single-asset homes while still preserving the home-like flexibility guests want. Apartments continue to serve urban and bleisure travelers, cabins and cottages remain tied to nature-driven demand, and villas and luxury homes cater to the highest-spending travelers. The United States vacation rental market is therefore broadening its supply mix, but homes still account for current revenue, while condominiums are becoming the more scalable growth path.
OTAs and platform-based bookings held 81.4% of the United States vacation rental market share in 2025, underscoring the continued concentration of guest acquisition at the platform layer. This dominance reflects the continued ability of large booking apps to capture first-time demand, support last-minute travel, and hold user attention through strong mobile booking flows. Airbnb alone accounted for 50% of United States short-term rental reservations in Q1 2026, up from 46% a year earlier. With 63% of total nights booked through the mobile app in Q1 2026, Airbnb is also reinforcing the app-based booking habit that supports repeat use and greater platform stickiness. That makes distribution in the United States vacation rental market increasingly dependent on visibility inside platform search systems rather than only on property-level brand building.
Direct Booking Websites are projected to grow at a 8.5% CAGR through 2031, making them the fastest-growing channel, though they still trail OTAs by a large margin. This reflects a split market in which OTAs continue to dominate acquisition while repeat guests increasingly move to direct channels to avoid fees and secure loyalty benefits. Property Management Company portals are also becoming more important as larger operators invest in owned customer relationships after building brand recognition through marketplace platforms. Offline travel agents remain smaller, but they still have a role in luxury and corporate-related bookings where itinerary support matters more than pure self-service booking. The United States vacation rental market is therefore not moving away from OTAs. Still, it is gradually adding more channel diversity as professional managers and repeat guests build alternatives to platform-only dependence.
United States Short-term Vacation Rental Market Trends and Insights
Domestic Short-Getaway Resilience Fuels Baseline Demand
Domestic travel remains the main demand base for the United States vacation rental market, and the U.S. Travel Association forecasts total travel spending to reach USD 1.37 trillion in 2026, with domestic travel accounting for 87% of that total (approximately USD 1.20 trillion). This domestic weighting provides the United States vacation rental market with better protection from the weaker inbound travel environment, which is affecting gateway city demand more directly. Stay length also improved, with average United States vacation rental stays increasing from 4.0 nights to 4.42 nights in 2025, strengthening booking economics without requiring the same degree of occupancy growth. Listings that can attract medium- and extended-stay guests are therefore capturing more guest spending, especially from travelers who value privacy, kitchen access, and flexible trip patterns. This pattern supports steadier demand throughout the year and gives the United States vacation rental market a broader base than a model built solely on peak-season leisure trips.Online Booking Platform Dominance Redefines Distribution Power
Online channels are shaping how demand is captured in the United States vacation rental market, and OTAs accounted for 81.4% of booking revenue in 2025. Airbnb reported Q1 2026 revenue of USD 2.7 billion, up 18% year over year, and Gross Booking Value of USD 29.9 billion, up 19% year over year, showing how large platforms continue to deepen their transactional role. Airbnb also disclosed that 63% of total nights booked in Q1 2026 came through the mobile app, indicating stronger app-based repeat behavior and lower friction in the booking flow. As platforms expand their role from listing distribution to trip planning and in-app services, direct channels face a tougher environment for first-time acquisition, even as repeat guest migration remains possible. This leaves the United States vacation rental market more dependent on platform visibility, ranking systems, and app-led customer retention than it was only a few years ago.City-Level Permit Caps Constrain Compliant Supply
Municipal regulation remains one of the strongest restraints on the United States vacation rental market, with more cities adopting permit caps, primary-residency rules, and density controls after 2024. Newberg, Oregon, set its 2026 vacation rental home cap at 187 units, equal to 2% of city households, under Ordinance No. 2025-2935 that took effect in September 2025. South Lake Tahoe also enacted a 45-day moratorium on vacation home rental permits in April 2025 while it finalized longer-term restrictions. These measures reduce compliant supply growth, raise entry barriers, and increase the operating value of already permitted inventory. The United States vacation rental market, therefore, faces a more uneven expansion path because locations with tighter rules can support higher pricing while simultaneously limiting the number of legally available listings.Other drivers and restraints analyzed in the detailed report include:
- Group-Friendly Larger Homes Outperform Across All Rate Tiers
- Premiumization Upgrades Yield Across the Inventory Pyramid
- Supply Growth Outpacing Demand Compresses Per-Listing Economics
Segment Analysis
Homes accounted for 40.2% of the United States vacation rental market size in 2025, making them the largest accommodation category. That lead reflects the strength of group travel, where multi-bedroom layouts, full kitchens, and private outdoor space remain difficult for hotel formats to replicate at comparable trip economics. The average party size of 4 to 6 travelers also supports homes, as the cost can compare favorably with two adjacent hotel rooms, while still offering more usable shared space, according to the draft. This gives homes a durable demand base across family trips, reunion travel, and leisure groups in beach and mountain destinations. In the United States vacation rental industry, this segment remains the core revenue anchor because it aligns closely with the way domestic travelers organize shared leisure trips.Condominiums and Resort Condominiums are forecast to grow at a 7.9% CAGR through 2031, the fastest rate among accommodation formats. AvantStay’s Nexo Residences partnership in North Miami Beach aligns with this direction by combining flexible short-term occupancy with purpose-built operations, smart key access, strong connectivity, and resort-style amenities. This format gives professional managers more scalable operations than scattered single-asset homes while still preserving the home-like flexibility guests want. Apartments continue to serve urban and bleisure travelers, cabins and cottages remain tied to nature-driven demand, and villas and luxury homes cater to the highest-spending travelers. The United States vacation rental market is therefore broadening its supply mix, but homes still account for current revenue, while condominiums are becoming the more scalable growth path.
OTAs and platform-based bookings held 81.4% of the United States vacation rental market share in 2025, underscoring the continued concentration of guest acquisition at the platform layer. This dominance reflects the continued ability of large booking apps to capture first-time demand, support last-minute travel, and hold user attention through strong mobile booking flows. Airbnb alone accounted for 50% of United States short-term rental reservations in Q1 2026, up from 46% a year earlier. With 63% of total nights booked through the mobile app in Q1 2026, Airbnb is also reinforcing the app-based booking habit that supports repeat use and greater platform stickiness. That makes distribution in the United States vacation rental market increasingly dependent on visibility inside platform search systems rather than only on property-level brand building.
Direct Booking Websites are projected to grow at a 8.5% CAGR through 2031, making them the fastest-growing channel, though they still trail OTAs by a large margin. This reflects a split market in which OTAs continue to dominate acquisition while repeat guests increasingly move to direct channels to avoid fees and secure loyalty benefits. Property Management Company portals are also becoming more important as larger operators invest in owned customer relationships after building brand recognition through marketplace platforms. Offline travel agents remain smaller, but they still have a role in luxury and corporate-related bookings where itinerary support matters more than pure self-service booking. The United States vacation rental market is therefore not moving away from OTAs. Still, it is gradually adding more channel diversity as professional managers and repeat guests build alternatives to platform-only dependence.
Complete Report Scope:
- By Accommodation Type
- Homes
- Apartments
- Condominiums
- Cabins and Cottages
- Villas and Luxury Homes
- By Booking Channel
- Online Travel Agencies
- Direct Booking Websites
- Property Management Company Portals
- Offline Travel Agents
- By Traveler Type
- Leisure Travelers
- Family and Group Travelers
- Digital Nomads and Remote Workers
- Business and Bleisure Travelers
- By Stay Duration
- Short Stay
- Medium Stay
- Extended Short-Term Stay
- By Management Type
- Individually Managed Properties
- Professionally Managed Properties
- By Region
- South
- West
- Northeast
- Midwest
List of Companies Covered in this Report:
- Airbnb, Inc.
- Vrbo
- Booking.com
- Expedia Group, Inc.
- Vacasa
- Evolve
- AvantStay
- Casago
- RedAwning
- HomeToGo
- Homes & Villas by Marriott Bonvoy
- Marriott International, Inc.
- Sonder
- Wander
- Natural Retreats
- 360 Blue
- iTrip Vacations
- SkyRun Vacation Rentals
- Inspirato
- VTrips
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 Introduction
4 Market Landscape
5 Market Size & Growth Forecasts (Value, USD Billion)
6 Competitive Landscape
7 Market Opportunities & Future Outlook
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Airbnb, Inc.
- Vrbo
- Booking.com
- Expedia Group, Inc.
- Vacasa
- Evolve
- AvantStay
- Casago
- RedAwning
- HomeToGo
- Homes & Villas by Marriott Bonvoy
- Marriott International, Inc.
- Sonder
- Wander
- Natural Retreats
- 360 Blue
- iTrip Vacations
- SkyRun Vacation Rentals
- Inspirato
- VTrips
