95+ Vacation Rental Statistics (2023)
A lot of people are choosing to stay in vacation rentals over hotels because they are more cost-efficient and situated in convenient locations. Rentals include household amenities that can help travelers save money as well as having the option to cook food from the comfort of a flat/house. It is interesting to delve deeper into vacation rentals to fully comprehend its increase in popularity both within the tourist industry as well as for property owners. Our vacation rental statistics explore the impact of Covid-19 on the rental industry, the different demographics that are staying in vacation rentals, Airbnb statistics, top destinations, rental occupancy rates as well as statistics on vacation rental ownership.
Explore our Top Vacation Rental Statistics below…
Top Vacation Rental Statistics
- Vacation rental revenue reached $87.09 billion in 2019.
- The market growth rate for vacation rentals is 6.9%.
- Airbnb has 5 million places to rent around the world, operating in 191 countries and 81,000 cities.
- $110.40 is the average revenue per user.
- Coronavirus massively impacted vacation rentals as bookings fell by 47% from 2.3 million to 1.2 million in April 2020.
- Millennials are more likely to choose rentals over hotels and are predicted to spend $1.4 trillion on travel each year by 2020.
- 81% of Gen Z have stayed in a vacation rental.
- Around the world, more than 260 million people have stayed in an Airbnb.
- By the end of 2020, Airbnb will net around $3.5 billion. Whereas in 2017 they generated $93 million in profit out of $2.6 billion in revenue.
- Research shows that 80% of baby boomers have rented a vacation rental from an online marketplace.
What do you want to know?
Coronavirus has unfortunately had a huge impact on the vacation rental market, bookings fell by 47% since the previous year. The short-term rental industry has been one of the hardest-hit businesses, as there has been a huge amount of canceled bookings as well as unpredictable booking seasons. Whereas in 2019, the vacation rental revenue reached a mammoth $87.09 billion. Once the pandemic ends we can only imagine that the market will skyrocket because tourists more than ever will want to go on vacation. To find out more interesting statistics on vacation rentals, read our editor’s statistics below
TOP VACATION RENTAL INDUSTRY STATISTICS
By 2027 the vacation rental market size is estimated to be worth around $113.9 billion. In 2019, the global vacation rental industry saw a revenue of $87.09 billion, and the growth rate for the market is 6.9%. Most of the revenue is generated in the U.S. when compared to the rest of the world.
- The average vacation rental revenue was $110.40
- By 2023, the total revenue from vacation rentals is expected to exceed $88 billion.
- By 2025, vacation rental statistics show that millennials and the younger generation will account for 75% of all consumers and travelers.
- 60% of vacation rentals are in Europe and 21% are in the U.S.
2020 Vacation Rental Statistics:
- Around the world, there are 115,000 vacation rental companies in 2020 and there are 23,000 in the U.S
- In 2020 the vacation rental market size is expected to reach $9,564 million. This is down 45%.
- In 2020, 75% of rental bookings in the U.S were booked online and 25% were booked offline.
- The annual growth rate for vacation rentals is 15.8%, with a projected market volume of $19,904 by 2025.
- COVID-19 has caused a 46.5% decrease in bookings.
Total Vacation Rental Users in the U.S. (by year):
2020 Total United States # of Vacation Rentals Users (Bookers): 35.2 million
The Top 5 Countries in the 2020 Vacation Rental Market by Revenue:
- The United States- $10,335 billion
- China- $5,400 billion
- Japan- $2,982 billion
- The United Kingdom- $2,616 billion
- Germany- $2,495
The Top 5 Countries by Penetration (% of the population)- 2020 Vacation Rental Market:
- Spain- 24%
- Qatar- 22.4%
- Kuwait- 21.7%
- Italy- 21.6%
- France- 21.6%
VACATION RENTAL STATISTICS - IMPACT OF COVID - 19
The Coronavirus pandemic has massively impacted the global travel industry as well as the vacation rental industry. According to recent vacation rental statistics, bookings fell 47%, from 2.3 million in April 2019 to 1.2 million in April 2020.
New Bookings by Week 2020 – CHART :
Occupancy Rates in 2020 – CHART :
- Global vacation rental occupancy reached 36.4% at its lowest this dropped by 45.1% from the previous year. Whereas hotel occupancy reached only 17.4%.
- According to vacation rental trends, global vacation rental and occupancy has increased by 60% and the average daily rate has increased by 23.2%.
- Global vacation rental revenue per available room has decreased (4.5%), however, the average daily rate has slightly increased.
- Vacation rental industry statistics show that it was Illinois that fell the most, 41% in 2020 compared to 2019.
- Whereas in West Virginia, new vacation rental bookings increased by 103% in 2020 compared to 2019.
VACATION RENTAL CUSTOMER DEMOGRAPHICS
Vacation rental industry statistics by the demographic reveal that millennials have accounted for over 77 million guest arrivals at Airbnb listings overall, this includes 44 million in the past year. This demographic is expected to spend around $1.4 trillion on travel every year.
- Millennials are less likely to choose hotels over short-term rentals.
- Millennials typically have an expensive taste like 12% plan to stay in a villa within the next year compared to 6% of baby boomers and 9% of Gen Xers.
- Vacation rental industry statistics show that 40% of leisure travelers who book online are millennials.
- Gen Z is a common vacation rental customer as 81% have stayed in either a home or condo vacation rental.
- According to vacation rental guests, 71% choose to stay in a rental because they can cook their meals.
- Gen Z is catching up with millennials as being the main users of vacation rentals.
- 35% of Gen Z are more likely to travel with friends over family or for a solo trip.
- 60% of Gen Z book their vacation rental in cities, surpassing suburban and rural destinations.
- Research shows that 81% of Gen Z travelers have already stayed in a vacation rental, showing that this will only continue to grow.
- In 2018, there was a 325% increase in growth among travelers with children (Vrbo).
- 25% of Americans stated that they have stayed in a short-term rental platform, this is up 277%.
- 33% of Americans used private accommodation in 2015, compared to 10% in 2010.
AIR BNB STATISTICS
According to Airbnb growth statistics, 150 million users cover over 65,000 cities. Around 260 million guests have booked properties with Airbnb across the globe. Research also shows that guests can choose from 1.9 million listings at any given time.
- Airbnb user statistics show that around the world, 260 million people have stayed in an Airbnb.
- Airbnb was worth $38 billion in 2019, they intended to go public in 2020 but this was delayed by the coronavirus pandemic.
- In 2017, Airbnb generated a profit of around $93 out of $2.6 billion in revenue. The net worth is expected to be around $3.5 billion by the end of 2020.
- Airbnb’s growth rate was 40% in 2018.
- Every month, 14,000 new hosts are joining the platform in 2020.
- Airbnb statistics show that there are now 7 million listings on Airbnb worldwide.
- $160.47 is the average cost of an Airbnb rental.
- In 2020, there are 220 countries/regions with active Airbnb listings.
- In the U.S. there are 660,000 listings.
- The price is an important factor as 53% choose Airbnb because of value for money.
- 30% use Airbnb for location, 33% use it so that they can have an authentic experience and 28% use it because of how convenient their site is.
- $20,619 is the average profit for someone to rent out a two-bedroom apartment for a year.
- During an average night, 2 million people stayed in an Airbnb rental around the world in 2018.
- Airbnb user demographics show that 54% of Airbnb guests are female and 46% are male.
- 88% of bookings are for 2-4 people.
- Airbnb demographics show that 74% of millennials have rented from an online marketplace.
- 60% of those who have booked on Airbnb are millennials.
- 38% of Gen X have used an online marketplace for rentals compared to 20% of Baby Boomers.
- 7% of Airbnb reservations are for single guests.
- There has been a 120% increase in senior hosts (over 60) since 2017.
- 250,000 Americans stayed in an Airbnb listing in 2015.
VACATION RENTAL OWNERSHIP & HOST STATISTICS
- In 2018, 30% of vacation rental owners will rent them as short-term rentals.
- In 2018, 32% of investment homeowners will rent them as short-term rentals.
- 6% of vacation rental owners bought their property to generate an income.
- 43% of vacation rental owners manage all aspects of the rental and 38% who lease a secondary residence also do the same.
- There are 9 million second homes in the U.S.
- 25% of second homes are professionally managed and used as rental property.
- 6% of vacation home buyers and 33% of vacation homeowners bought their property to generate an income.
- 33% of vacation rental owners bought their property in a resort area, 24% bought theirs in a rural area and 18% bought theirs in a small town.
- 33% of vacation rental owners bought their property in a beach area, 21% bought theirs on a lakefront and 15% purchased theirs in the country.
- 34% of investors bought their property in a suburb/subdivision, 24% in a small town, and 19% in an urban area/city center.
- 63% of investors and 52% of vacation rental owners bought a detached single-family home.
- 49% of property managers and vacation home buyers intend to use their second home as a family retreat.
- 45% of people who purchase a second home do this to generate an income through renting rather than seeking price appreciation or flipping it.
TOP VACATION RENTAL DESTINATIONS
The Top 15 Vacation Rental Destinations:
- North Carolina
- South Carolina
- New Jersey
- New York
- The beach is a top vacation rental destination as 74% prefer a vacation by the coast.
- 83% of travelers like to be by a lake or ocean and is one of the best vacation rental destinations.
- 51% of people prefer mountainous vacations and 35% prefer city vacations.
- 71% of people like to cook their meals when on a vacation.
- The most expensive places to rent for a vacation in the U.S. are:
⦁ East Hampton in NY
⦁ Truckee in CA
⦁Tahoe City in CA
⦁ Keystone in CO
⦁ Annapolis in MD
- Mountainous vacations are the most memorable vacations (12% more than other destinations).
- Florida is the most popular state for vacation rentals, more popular than the next three states combined. It is one of the best years-round vacation rental destinations.
The Top 5 Vacation Rental Destinations in the U.S. in Order of Increasing Average Investment Property Returns.
- The median sale price is $484,154
- The average nightly rate is around $324
- The total number of annual guests is 16,526
Cocoa Beach, Florida:
- The median sale price is $370,406
- The average nightly rate is around $298
- The total number of annual guests is 2,012
- The median sale price is $575,422
- The average nightly rate is around $336
- The total number of annual guests is 2,359
- The median sale price is $373,258
- The average nightly rate is around $245
- The total number of annual guests is 18,859
- The median sale price is $230,418
- The average nightly rate is around $212
- The total number of annual guests is 4,489
VACATION RENTAL OCCUPANCY RATES BY CITY
The average vacation rental occupancy both full-time and part-time is 48%. However, if full-time properties have an occupancy level of less than 50% they are seen as being on the lower end of the spectrum. The average occupancy rate for some cities can be around 10-20%.
- 5.6 nights are the average length a traveler will stay in a vacation rental.
- The average vacation rental occupancy rate by nights booked is 170 nights a year.
- com is the most popular for rentals, with 27.1% of bookings per year.
- 5% is the average annual occupancy of vacation rentals.
Vacation Rental Occupancy Rates by City– TABLE:
Staying in a vacation rental allows travelers to live like a local, from unique house amenities to interesting interior aesthetics. It also gives tourists the chance to shop at the local grocery store for necessities as well as interact with the locals. This is particularly popular amongst the younger generation as 60% of those who have booked on Airbnb are millennials. Tourists have complete control over everything when staying in a vacation rental and it is shocking to discover that there are now an incredible 7 million listings on Airbnb alone.
Sources: IProperty Management, PR News Wire, Statista, Stayfi, Grand View Research, Statista, Iddy, Stayfi, Global Resort Homes, IProperty Management, Grand View Research, Condor Ferries, National Geographic, Key Data Dashboard, Stayfi, IProperty Management, Verbo, Build Up Bookings, Hostfully, Air BNB Citizen, Much Needed, Stratos Jets, Stayfi, Much Needed, Statista, Stayfi, IProperty Management, Stratos Jets, Real Wealth Network, Vrbo, Fool, IProperty Management, General ITravel Insurance, Business Insider, CNBC, Sync BNB, All The Rooms