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

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

US Vacation Rental Market Overview:

As per MRFR analysis, the US Vacation Rental Market Size was estimated at 24.5 (USD Billion) in 2023. The US Vacation Rental Market Industry is expected to grow from 25.5(USD Billion) in 2024 to 39.6 (USD Billion) by 2035. The US Vacation Rental Market CAGR (growth rate) is expected to be around 4.082% during the forecast period (2025 - 2035).

Key US Vacation Rental Market Trends Highlighted

The US Vacation Rental Market is experiencing significant growth driven by several key market drivers. The increasing popularity of travel, particularly during and post-pandemic, has resulted in more consumers opting for home-sharing and vacation rentals as a preferred lodging option. This shift can be attributed to the desire for more space, privacy, and unique local experiences that traditional hotels may not offer. Furthermore, technological advancements in booking platforms have made it easier for travelers to find and reserve vacation rentals, significantly enhancing customer convenience. Opportunities to be explored in the US Vacation Rental Market lie in leveraging the rise of remote work.Many professionals are now looking for extended stays in vacation rentals to combine work and leisure. This trend opens up growth channels for property owners to cater to business travelers seeking longer accommodations. Additionally, eco-friendly and socially responsible travel options are gaining popularity, which presents an avenue for rental properties that emphasize sustainability and community engagement. Trends in recent times indicate that travelers are increasingly prioritizing health and safety when selecting vacation rentals. Enhanced cleaning practices and flexible cancellation policies have become critical factors that influence booking decisions.Furthermore, there is a growing trend of personalization in travel experiences, as consumers seek tailored vacation packages that align with their interests, such as outdoor activities or local cultural experiences. These market trends suggest that the US Vacation Rental Market will continue to evolve, responding to changing consumer preferences and external factors that shape travel behavior.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Vacation Rental Market Drivers

Rise in Domestic Travel Post-Pandemic

The US Vacation Rental Market Industry has seen a significant uptick in domestic travel as the nation recovers from the COVID-19 pandemic. According to the US Travel Association, domestic travel spending is projected to substantially increase, with expectations of reaching approximately 1.1 trillion USD in 2023, growing by 30% compared to 2021 levels. This surge in domestic travel has propelled more travelers towards vacation rentals, as they seek out unique and safer accommodation options instead of traditional hotels.The preference for vacation rentals is driven by factors such as enhanced privacy, more space, and the ability to cook meal options, which are especially attractive to families and groups. Regional governments have also been supporting tourism recovery initiatives, further fueling growth in the US Vacation Rental Market Industry.

Increased Consumer Preference for Remote Work Arrangements

The rise of remote work has transformed the way Americans approach travel and vacations. A recent survey conducted by FlexJobs indicated that over 25% of remote workers have expressed interest in vacationing in vacation rentals while continuing to work. This trend is prompting a significant demand for vacation rentals that provide both leisure and workspace. As more companies transition to flexible work arrangements, employees are looking to blend work and vacation, resulting in a growing reliance on vacation rentals for extended stays.The US Vacation Rental Market Industry is thus benefiting from this cultural shift, as these accommodations cater specifically to the needs of remote workers.

Growing Popularity of Online Booking Platforms

The rise of innovative online booking platforms has dramatically changed consumer behavior in the US Vacation Rental Market Industry. Platforms such as Airbnb and Vrbo have expanded their user base significantly, reporting millions of listings and increased user engagement year-over-year. According to Hostfully, 78% of travelers used an online travel agency to book their vacation rental in 2022. These platforms make it easier for property owners to reach potential guests and provide travelers with a wide range of options at competitive prices, driving the overall growth of the market.As technology continues to enhance the booking experience, the US Vacation Rental Market Industry is poised for further expansion.

US Vacation Rental 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.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

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.

US Vacation Rental Market Key Players and Competitive Insights:

The US Vacation Rental Market is a dynamic and rapidly evolving segment of the travel and hospitality industry, characterized by a wide array of offerings ranging from cozy cottages to luxurious villas. Competition in this market is intensifying as consumers turn increasingly to alternative accommodation options, seeking authentic experiences and value for their money. Various players operate within this landscape, including established online travel agencies, niche platforms, and peer-to-peer rental services. The competition is driven by factors such as pricing, property availability, quality of listings, user experience, and customer service. As a result, companies must continually innovate and adapt to consumer preferences to maintain and enhance their market position. The rise of mobile technology and personalized services further complicates the competitive environment, making customer engagement and retention paramount.Tripadvisor has established a strong presence in the US Vacation Rental Market, leveraging its extensive user-generated content and review platform to provide travelers with insights into properties and experiences. Known for its comprehensive database of listings, Tripadvisor combines vacation rentals with traditional lodging options, allowing users to compare prices and book their accommodations seamlessly. The company's strengths lie in its vast community of users who contribute reviews and ratings, enhancing the credibility of listings and helping prospective guests make informed decisions. By providing a user-friendly interface and robust search capabilities, Tripadvisor has optimized the booking process, facilitating a positive experience for customers. The brand's reputation and marketing power also contribute to its competitive advantage, as it capitalizes on trust and recognition built over the years.Plum Guide stands out in the US Vacation Rental Market by focusing on a curated selection of high-quality properties that undergo a rigorous vetting process. The company specializes in luxury vacation rentals, ensuring that each listing meets specific standards of design, service, and amenities. Plum Guide's unique selling proposition lies in its meticulous quality control, which enhances customer confidence in choosing accommodations that meet their expectations. The brand has gained traction by creating a niche within the luxury segment, appealing to discerning travelers looking for extraordinary experiences. Moreover, Plum Guide has been proactive in expanding its market presence, investing in marketing strategies and partnerships to amplify its visibility. While there has been limited public information on recent mergers and acquisitions in this specific market segment, Plum Guide has continuously looked for opportunities to enhance its portfolio and strengthen its position in the competitive landscape, reflecting a commitment to innovation and customer satisfaction.

Key Companies in the US Vacation Rental Market Include:

Tripadvisor

Plum Guide

OYO Rooms

FlipKey

Rental Scale

Vrbo

Airbnb

Sonder

Vacasa

Expedia Group

TurnKey Vacation Rentals

HomeAway

Booking Holdings

RedAwning

US Vacation Rental Market 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.

US Vacation Rental Market Segmentation Insights

Vacation Rental Market Accommodation Type Outlook

Home

Apartments

Resort/Condominium

Others

Vacation Rental Market Booking Mode Outlook

Online

Offline

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	24.5(USD Billion)
MARKET SIZE 2024	25.5(USD Billion)
MARKET SIZE 2035	39.6(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.082% (2025 - 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	Tripadvisor, Plum Guide, OYO Rooms, FlipKey, Rental Scale, Vrbo, Airbnb, Sonder, Vacasa, Expedia Group, TurnKey Vacation Rentals, HomeAway, Booking Holdings, RedAwning
SEGMENTS COVERED	Accommodation Type, Booking Mode
KEY MARKET OPPORTUNITIES	Increased remote work flexibility, Sustainable vacation rental options, Tech integration for guest experience, Enhanced property management solutions, Growing demand for family-friendly accommodations.
KEY MARKET DYNAMICS	growing demand for unique experiences, increase in remote work trends, shifting consumer preferences towards flexibility, rise of technology-driven platforms, regulatory challenges and compliance risks
COUNTRIES COVERED	US