2023 Short Term Rental Statistics & Market Growth
Key statistics at a glance
| Statistic | Figure | Source |
|---|---|---|
| Global STR market size (2021) | $87.09 billion | Statista, 2023 |
| Expected STR market size (2028) | $119.0 billion | Statista, 2023 |
| Average U.S. occupancy rate for STRs (2022) | 62.6% | AirDNA, 2023 |
| Average nightly rate for U.S. STRs (2022) | $202 | AirDNA, 2023 |
| Growth of MTR from 2019 to 2022 | 26% | Transpar Travel Data, 2023 |
| Percentage of STRs operated by hosts with 1 property (2022) | 36% | iPropertyManagement, 2023 |
| Number of Airbnb listings worldwide (2022) | 7 million+ | Airbnb, 2023 |
| Average U.S. rental yield for LTRs (2022) | 7.4% | NAR, 2023 |
| STR booking window (average days in advance) | 35 days | Statista, 2023 |
Understanding the STR Market Landscape
The short-term rental (STR) industry has seen significant growth, highlighted by the market's valuation at $87.09 billion in 2021 and a forecast to reach $119 billion by 2028, according to Statista. This expansion is fueled by increasing consumer preference for flexible travel options and the rise of platforms like Airbnb.
Occupancy rates, a crucial metric for property managers, averaged 62.6% in the U.S. in 2022, as reported by AirDNA. This figure underscores the importance of strategic location and seasonality in maximizing occupancy. Operators can leverage platforms like Rentology to optimize pricing models and booking schedules efficiently.
Mid-Term Rentals: A Growing Segment
Mid-term rentals (MTRs), which grew by 26% from 2019 to 2022 (Transpar Travel Data), represent a burgeoning sector within the rental market. This trend is largely driven by remote workers and those seeking flexible living arrangements without the long-term commitment. Property managers can capitalize on this by offering flexible leasing terms and leveraging AI solutions such as Rentology to balance between short and mid-term offerings.
Operational Insights: Host Dynamics
A striking 36% of short-term rentals in 2022 were managed by hosts owning a single property, as per iPropertyManagement. This statistic reflects the democratization of the STR market, enabling smaller property managers to compete effectively on a global scale. Sophisticated tools like those offered by Rentology can streamline tasks for both novice and seasoned operators.
Economic Impact and Revenue Considerations
The average nightly rate for short-term rentals in the U.S. stood at $202 in 2022, per AirDNA data, indicating a lucrative pricing point for managers who fine-tune their offerings. When compared to long-term rentals, which had a yield of 7.4% in 2022 according to the NAR, STRs can offer higher revenue potentials, albeit with more active management requirements.
Sources
- Statista, 2023
- AirDNA, 2023
- Transpar Travel Data, 2023
- iPropertyManagement, 2023
- Airbnb, 2023
- NAR, 2023
FAQ
What are the current short term rental occupancy rates? Average U.S. occupancy rates for STRs were 62.6% in 2022, showcasing the balance of supply and demand in various regions as reported by AirDNA.
How large is the short term rental market? The global STR market size was $87.09 billion in 2021 and is expected to reach $119 billion by 2028, as estimated by Statista.
What factors influence short term rental pricing? Key factors include location, seasonality, local demand, and competing property offerings. Tools like Rentology can aid in efficiently adjusting rates based on market conditions.
How has the STR booking trend changed post-pandemic? The average booking window for STRs in 2022 was 35 days in advance, indicating a stable post-pandemic recovery phase in traveler confidence according to Statista.