Vacation rental market seen hitting $180.7 billion by 2035

The global vacation rental market is projected to grow from $112.0 billion in 2025 to $180.7 billion by 2035, driven by remote work, digital booking habits and demand for more flexible stays. The shift is pushing vacation rentals deeper into the mainstream travel market across North America, Europe and Asia-Pacific.

Why it matters: - Vacation rentals are moving from a niche option to a mainstream lodging category as travelers prioritize privacy, space, flexibility and local experiences. - The market’s projected growth points to more demand for short stays, extended bleisure trips and work-friendly accommodations. - Property owners and managers stand to gain from steadier occupancy as longer stays and year-round demand reduce reliance on seasonal travel.

What happened: - The global vacation rental market was valued at USD 112.0 billion in 2025 and is projected to reach USD 180.7 billion by 2035. - The market is expected to expand at a 4.9% CAGR from 2026 through 2035. - The forecast reflects rising demand for flexible travel experiences, digital booking confidence and premium stay options.

The details: - Vacation rentals include apartments, villas, houses, cabins, cottages and specialty stays. - The format appeals to families, groups, digital nomads, long-stay guests and premium leisure travelers. - Digital-first travelers are shaping the market by expecting instant confirmation, transparent reviews, dynamic pricing and personalized recommendations. - Operators and online travel platforms are investing in stronger host verification, better customer support and AI-enabled pricing tools. - Bleisure travel and remote-work flexibility are lifting demand for properties with reliable internet, dedicated workspaces and comfortable living environments. - Online travel marketplaces are expanding access to vacation rentals by making discovery and booking easier for consumers. - AI-enabled dynamic pricing is helping managers respond to seasonality, local events, booking lead times and competitive supply. - Luxury demand is rising for beachfront villas, mountain chalets, heritage homes, designer apartments and wellness retreats.

Between the lines: - The market’s growth is being driven less by one travel segment and more by a broad change in how people want to use lodging. - Vacation rentals now compete on both utility and experience, which raises the bar for hosts and professional managers. - The shift toward professionalization suggests that scale, consistency and technology will matter more as competition increases. - Emerging-market supply gaps could make vacation rentals especially important where hotel development is slower or constrained.

What's next: - Mid-term stays for digital nomads remain one of the clearest growth opportunities, especially for furnished units with flexible lease terms. - Regional growth is expected to remain broad-based, with North America, Europe and Asia-Pacific each offering strong demand drivers. - Latin America and the Middle East & Africa may see further gains as tourism recovers and booking technology improves. - Competition is likely to intensify among platforms, hosts and hospitality brands as they compete on visibility, trust and guest satisfaction.

The bottom line: - Vacation rentals are on track to become a larger and more sophisticated part of global travel, with technology and flexible living needs powering the next phase of growth. - Major platforms and operators including Airbnb, Booking Holdings, Expedia Group, TripAdvisor, Vacasa and Marriott are positioned to shape how that market develops. - More information is available in the report sample.