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    US Vacation Rental Market

    ID: MRFR/CR/19387-HCR
    128 Pages
    Garvit Vyas
    October 2025

    US Vacation Rental Market Research Report: By Accommodation Type (Home, Apartments, Resort/Condominium, Others) and By Booking Mode (Online, Offline) - Forecast to 2035

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    US Vacation Rental Market Infographic
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    US Vacation Rental Market Summary

    As per MRFR analysis, the US vacation rental market size was estimated at 20.08 USD Billion in 2024.. The US vacation rental market is projected to grow from 21.18 USD Billion in 2025 to 36.19 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.5% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US vacation rental market is experiencing a dynamic shift towards unique and flexible accommodation options.

    • The demand for unique experiences in vacation rentals continues to rise, appealing to travelers seeking personalized stays.
    • Remote work has led to an increase in longer rental durations, particularly among digital nomads and families.
    • Technological integration in vacation rentals is enhancing guest experiences through smart home features and seamless booking processes.
    • The growing preference for alternative accommodations and the expansion of online booking platforms are key drivers of market growth.

    Market Size & Forecast

    2024 Market Size 20.08 (USD Billion)
    2035 Market Size 36.19 (USD Billion)

    Major Players

    Airbnb (US), Vrbo (US), Booking.com (NL), Tripadvisor (US), HomeAway (US), FlipKey (US), Vacasa (US), Sonder (US), OYO Rooms (IN)

    US Vacation Rental Market Trends

    the vacation rental market is currently experiencing a dynamic shift, driven by changing consumer preferences and technological advancements. Travelers increasingly seek unique and personalized experiences, which vacation rentals can provide. This shift is evident as more individuals opt for accommodations that offer local flavor and amenities not typically found in traditional hotels. Additionally, the rise of remote work has led to longer stays, with many individuals choosing to work from vacation rentals, thereby blurring the lines between leisure and business travel. This trend appears to be reshaping the landscape of the market, as property owners adapt to meet the demands of this new clientele. Moreover, the integration of technology into the vacation rental market is noteworthy. Platforms facilitating bookings have enhanced user experiences, making it easier for guests to find and reserve properties. The use of smart home technology within rentals is also on the rise, providing added convenience and security for guests. As the market continues to evolve, it seems likely that these technological advancements will play a crucial role in shaping future offerings, ensuring that property owners remain competitive and responsive to consumer needs. Overall, the vacation rental market is expected to continue growing, driven by innovation and changing traveler expectations.

    Increased Demand for Unique Experiences

    Travelers are increasingly seeking distinctive accommodations that reflect local culture and provide personalized experiences. This trend indicates a shift away from conventional lodging options, as guests prioritize authenticity and local engagement during their stays.

    Rise of Remote Work Stays

    The blending of work and leisure travel is becoming more prevalent, with many individuals opting for extended stays in vacation rentals. This trend suggests that property owners may need to cater to remote workers by offering amenities conducive to productivity.

    Technological Integration in Rentals

    The incorporation of smart technology in vacation rentals is gaining traction, enhancing guest convenience and security. This trend highlights the importance of adapting to technological advancements to meet evolving consumer expectations.

    US Vacation Rental Market Drivers

    Expansion of Online Booking Platforms

    The proliferation of online booking platforms has revolutionized the vacation rental market, making it easier for consumers to find and book accommodations. These platforms provide a user-friendly interface, allowing travelers to compare options, read reviews, and secure reservations with ease. Recent figures show that over 60% of vacation rentals in the US are booked through online platforms, highlighting their significance in the market. This expansion has also led to increased competition among property owners, driving innovation and improvements in service quality within the vacation rental market.

    Impact of Economic Factors on Travel Spending

    Economic conditions play a crucial role in shaping the vacation rental market. As disposable income levels rise, consumers are more inclined to allocate funds towards travel and leisure activities. Recent statistics indicate that travel spending in the US has increased by 5% year-over-year, with a significant portion directed towards vacation rentals. This trend suggests that as the economy strengthens, the vacation rental market may continue to flourish, attracting a diverse range of travelers. Additionally, fluctuations in fuel prices and inflation can influence travel decisions, potentially impacting the demand for vacation rentals in various regions.

    Increased Focus on Health and Safety Standards

    In the wake of heightened awareness regarding health and safety, the vacation rental market is adapting to meet new consumer expectations. Property owners are implementing rigorous cleaning protocols and safety measures to ensure guest confidence. Data indicates that 70% of travelers prioritize cleanliness when selecting accommodations, which has prompted many vacation rental operators to enhance their hygiene practices. This focus on health and safety not only addresses consumer concerns but also positions the vacation rental market as a responsible choice for travelers seeking peace of mind during their stays.

    Rising Popularity of Sustainable Travel Options

    Sustainability is becoming an increasingly important consideration for travelers, influencing their choices in the vacation rental market. Many consumers are actively seeking eco-friendly accommodations that align with their values. Recent surveys indicate that approximately 40% of travelers are willing to pay a premium for sustainable lodging options. This trend is prompting property owners to adopt environmentally friendly practices, such as energy-efficient appliances and waste reduction strategies. As awareness of sustainability grows, the vacation rental market is likely to see a surge in demand for properties that prioritize eco-consciousness.

    Growing Preference for Alternative Accommodations

    The vacation rental market is experiencing a notable shift as travelers increasingly favor alternative accommodations over traditional hotels. This trend is driven by a desire for unique and personalized experiences, which vacation rentals can provide. According to recent data, approximately 30% of travelers in the US now prefer vacation rentals for their flexibility and home-like amenities. This growing preference is reshaping the vacation rental market, as property owners adapt to meet the evolving demands of consumers seeking distinctive lodging options. The ability to offer tailored experiences, such as local insights and personalized services, positions vacation rentals as a compelling choice for modern travelers.

    Market Segment Insights

    Vacation Rental Market Accommodation Type Insights

    The Accommodation Type segment within the US Vacation Rental Market has seen substantial evolution, driven by changing consumer preferences and technological advancements. The segment includes various categories such as Home, Apartments, Resort/Condominium, and Others, each contributing distinctly to the overall market dynamics. Homes are increasingly popular among families and large groups, providing privacy, space, and a home-like experience; they have become significant in attracting travelers seeking longer stays for vacations or working remotely.Apartments cater primarily to urban destinations, appealing to younger travelers and those looking for convenience and proximity to city attractions.

    They cater well to the millennial demographic, who prefer trendy, localized experiences over traditional hotel stays. Meanwhile, resort and condominium rentals hold a strong position due to their ability to offer a range of amenities, including pools, spas, and recreational activities, making them highly attractive to vacationers who are looking for a full-service experience in desirable locations.The growing preference for unique, personalized accommodations over standardized hotel rooms has raised the profile of alternatives collectively categorized as "Others," which often include boutique rentals, cabins, and specialty lodging options that deliver distinct experiences.

    The interplay of affordability, increasing online booking capabilities, and growing options in the Vacation Rental Market have encouraged consumers to explore diverse accommodation types, aligning perfectly with the trends toward experiential travel. The significance of each category reflects the larger trend in the US towards localized, authentic experiences, and the ongoing demand for flexibility in travel arrangements contributes to the growth observed in the Accommodation Type segment.The segmentation showcases the diversity within the US Vacation Rental Market, indicating robust consumer interest and numerous options to fulfill varying needs.

    Market growth is anticipated as more property owners explore the rental potential of their homes, apartments, and unique lodgings, while travelers increasingly look for cost-effective and novel alternatives to traditional lodging, shaping the tourism landscape in the US. As consumer behaviors continue to evolve, the Accommodation Type segment remains a critical area of focus, presenting ongoing opportunities for innovation and expansion within the industry.With enhanced flexibility and evolving consumer expectations regarding accommodation, this segment’s adaptability will likely play a crucial role in driving future growth in the US Vacation Rental Market revenue.

    Overall, the Accommodation Type segment stands poised for progression, illustrating the broader shifts in travel behaviors and the expanding landscape of rental options available across the United States.

    Vacation Rental Market Booking Mode Insights

    The Booking Mode segment within the US Vacation Rental Market serves as a critical component in shaping consumer behavior and operational practices. As the overall market grows, the trend towards Online booking continues to dominate, driven by technological advancements and shifting consumer preferences towards convenience and accessibility. This mode allows travelers to browse extensive listings, compare properties, and secure accommodation effortlessly from any location, which has become a significant factor in its widespread adoption.

    In contrast, Offline booking, though less prevalent, retains importance due to its ability to cater to specific demographics seeking personalized service and direct interaction, often appreciated by older travelers or those unfamiliar with digital platforms.The US Vacation Rental Market segmentation highlights these diverse modes, showcasing how they cater to various consumer needs and preferences. With an increasing reliance on digital solutions, opportunities for growth in this segment are significant, driven by ongoing developments in online platforms and mobile technology, which reshape market dynamics and enhance the overall user experience.

    Furthermore, the continuous rise in travel and the evolving lifestyle choices of consumers contributes to shifting patterns in booking preferences, making this segment a focal point for both market growth and competition.

    Get more detailed insights about US Vacation Rental Market

    Key Players and Competitive Insights

    The vacation rental market in the US is characterized by a dynamic competitive landscape, driven by evolving consumer preferences and technological advancements. Major players such as Airbnb (US), Vrbo (US), and Vacasa (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Airbnb (US) continues to innovate its platform, focusing on user experience and expanding its offerings to include unique stays and experiences. Vrbo (US), on the other hand, emphasizes family-oriented vacation rentals, leveraging its brand heritage to attract a specific demographic. Vacasa (US) is increasingly investing in technology to streamline property management, indicating a trend towards operational efficiency that is reshaping the competitive environment.

    The business tactics employed by these companies reflect a moderately fragmented market structure, where localized strategies and supply chain optimization play crucial roles. Companies are increasingly localizing their offerings to cater to regional preferences, which enhances customer satisfaction and loyalty. The collective influence of key players is significant, as they not only compete for market share but also set industry standards that smaller operators often follow.

    In October 2025, Airbnb (US) announced a partnership with a leading travel technology firm to enhance its AI-driven customer service capabilities. This strategic move is likely to improve user engagement and streamline booking processes, positioning Airbnb (US) as a leader in customer experience within the vacation rental sector. The integration of advanced AI tools may also provide insights into consumer behavior, allowing for more personalized marketing strategies.

    In September 2025, Vrbo (US) launched a new marketing campaign targeting multi-generational families, highlighting properties that accommodate larger groups. This initiative appears to be a strategic response to the growing trend of family travel, suggesting that Vrbo (US) is keen on solidifying its niche in the market. By focusing on family-friendly features, Vrbo (US) may enhance its appeal and drive bookings during peak travel seasons.

    In August 2025, Vacasa (US) expanded its portfolio by acquiring a regional property management company, which is indicative of its aggressive growth strategy. This acquisition not only increases Vacasa's inventory but also enhances its operational capabilities in key markets. Such strategic actions may allow Vacasa (US) to leverage economies of scale and improve service delivery, thereby strengthening its competitive position.

    As of November 2025, the vacation rental market is witnessing trends such as digitalization, sustainability, and the integration of AI technologies. Companies are increasingly forming strategic alliances to enhance their service offerings and operational efficiencies. The competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and reliability in supply chains. This shift suggests that companies that prioritize technological advancements and sustainable practices may gain a competitive edge in the future.

    Key Companies in the US Vacation Rental Market market include

    Industry Developments

    Recent developments in the US Vacation Rental Market have seen significant shifts, particularly in the realms of growth and competition among key players like Airbnb, Vrbo, and Expedia Group. Airbnb has continued to expand its offerings and introduce new features to enhance user experience, while Vrbo is focusing on family-oriented vacation options to capture a wider market. In September 2023, OYO Rooms announced a strategic partnership with TurnKey Vacation Rentals to expand its footprint in the US, aiming to augment its portfolio of vacation rental properties.

    In addition, Plum Guide has been gaining traction, emphasizing high-quality listings and a rigorous vetting process to attract discerning travelers. The market valuation of companies such as Vacasa and Sonder has shown upward momentum, driven by increased travel demand post-pandemic. Notably, the US vacation rental sector has experienced substantial growth over the past few years, with reported revenue leaps in 2022 and 2023 as travel restrictions lifted. The Federal Reserve's interest rate decisions also play a role in shaping the market dynamics, influencing consumer spending on travel and accommodations.

    As competition intensifies, businesses in the US vacation rental market are strategizing to enhance their offerings in this expanding landscape.

    Future Outlook

    US Vacation Rental Market Future Outlook

    The vacation rental market is projected to grow at a 5.5% CAGR from 2024 to 2035, driven by increased travel demand, technological advancements, and evolving consumer preferences.

    New opportunities lie in:

    • Integration of AI-driven pricing algorithms for dynamic revenue management.
    • Development of eco-friendly rental properties to attract sustainability-focused travelers.
    • Partnerships with local businesses for exclusive guest experiences and promotions.

    By 2035, the vacation rental market is expected to be robust, reflecting strong growth and innovation.

    Market Segmentation

    US Vacation Rental Market Customer Type Outlook

    • Leisure Travelers
    • Business Travelers
    • Family Groups
    • Couples

    US Vacation Rental Market Property Type Outlook

    • House
    • Apartment
    • Villa
    • Cabin
    • Condominium

    US Vacation Rental Market Booking Platform Outlook

    • Online Travel Agencies
    • Direct Booking Websites
    • Property Management Systems
    • Mobile Apps

    US Vacation Rental Market Duration of Stay Outlook

    • Short-term
    • Mid-term
    • Long-term

    Report Scope

    MARKET SIZE 2024 20.08(USD Billion)
    MARKET SIZE 2025 21.18(USD Billion)
    MARKET SIZE 2035 36.19(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 5.5% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled Airbnb (US), Vrbo (US), Booking.com (NL), Tripadvisor (US), HomeAway (US), FlipKey (US), Vacasa (US), Sonder (US), OYO Rooms (IN)
    Segments Covered Property Type, Booking Platform, Customer Type, Duration of Stay
    Key Market Opportunities Integration of smart home technology enhances guest experience in the vacation rental market.
    Key Market Dynamics Rising consumer preference for unique accommodations drives competition and innovation in the vacation rental market.
    Countries Covered US

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    FAQs

    What is the expected market size of the US Vacation Rental Market in 2024?

    The US Vacation Rental Market is expected to be valued at 25.5 billion USD in 2024.

    What will be the expected market size of the US Vacation Rental Market by 2035?

    By 2035, the market is projected to reach a value of 39.6 billion USD.

    What is the expected CAGR for the US Vacation Rental Market from 2025 to 2035?

    The market is expected to grow at a CAGR of 4.082% during the forecast period from 2025 to 2035.

    Which accommodation type holds the largest market share in the US Vacation Rental Market?

    In 2024, homes are expected to lead the market with a valuation of 10.5 billion USD.

    What are the projected valuations for apartments in the US Vacation Rental Market by 2035?

    The market for apartments is projected to reach 12.1 billion USD by 2035.

    Which key players are dominating the US Vacation Rental Market?

    Major players in the market include Airbnb, Vrbo, and Expedia Group among others.

    What is the expected market size for resort/condominiums in 2024?

    The market for resort/condominiums is expected to be valued at 5.0 billion USD in 2024.

    How much is the US Vacation Rental Market expected to be valued at for 'others' accommodation type in 2035?

    The 'others' accommodation type is expected to reach a valuation of 3.5 billion USD by 2035.

    What trends and growth drivers are impacting the US Vacation Rental Market?

    Emerging trends include increased demand for flexible lodging options and personalization in services.

    How do seasonal trends affect the US Vacation Rental Market?

    Seasonal trends significantly impact booking rates and occupancy levels across different accommodation types.

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