In September 2025, Europe’s short-term rental market remained steady, with demand up 3.6% year-over-year and listings reaching 4 million. Regulatory pressures tightened supply but boosted occupancy and pricing power across key southern markets.

European Review September 2025: Market Holds Steady as Regulations Tighten and Growth Slows

Regulatory pressure led to a second month in which available listings grew only by 1.6% year-over-year, with Spain and Italy among the countries where supply declined.

The RRI (Repeat Rent Index) grew by 4.6% year-over-year as ADR declined by -2.1%, suggesting higher pricing power among seasoned operators.

The increase in shoulder season demand is evident in Greek markets, with Athens and Rhodes experiencing a greater portion of their annual demand during this period.

After the record highs seen during the summer, Europe’s short-term rental market continued to show stable growth in September. Available listings increased 1.6% year-over-year, reaching 4 million units. Demand growth declined slightly at -0.9% after a flat August with 0.3% growth, bringing total demand nights to 45.5 million.

As supply growth slows and regulatory pressures increase, barriers to entry across several European markets are pushing occupancy higher. Italy stands out as a key example where supply contraction has led to occupancy gains, with rates increasing by 2.5% YoY.

At a Glance: September 2025 STR Performance in Europe

Available listings reached 4 million, an increase of 1.6% YOY

Demand Nights declined by -0.9% YOY to 45.5 million

Average daily rates (ADR) decreased slightly by -2.1% YOY to 128 €

Average occupancy rate reached 55%, down -1.3% YOY

Revenue per Available Rental Night (RevPAR) declined 3.4% at 70.47 €

Inflation is steady at the European Central Bank’s (ECB) medium-term target of 2% and unemployment in the Euro Area at 6.3% over the past year. With that context, the ECB decided to keep interest rates unchanged at its September monetary policy meeting, with the deposit facility rate remaining at 2%.

Following a period of trade-related uncertainty earlier in 2025, stable inflation and employment have supported a modestly improved economic outlook. The ECB raised its 2025 GDP growth projection from 0.9% (in June) to 1.2%, though forecasts for 2026 were revised downward to 1%, while 2027 projections held steady at 1.3%.

According to McKinsey’s latest ConsumerWise data, European consumers remain more willing to spend on travel than those in the United States. In the EU-5, 34–37% of respondents plan to increase travel spending, compared with only 29% in the U.S. 

Spain shows the strongest intention to splurge, followed by Germany, Italy, and France. The UK trails slightly behind. This suggests European households remain relatively optimistic about discretionary leisure spending, even as the broader economy cools.

The data also shows that willingness to spend on travel rises with age. Baby Boomers report the greatest intent to spend more, followed by Gen X, while fewer than one-third of Millennials and Gen Z respondents plan to boost travel budgets. This generational divide reflects the differing economic realities across age groups: older consumers, typically with higher savings and stable incomes, continue to prioritize experiential travel, while younger travelers remain more constrained by cost-of-living pressures.

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Listing Growth Decelerates as Regulation Tightens

As summer comes to an end, available short-term rental listings across Europe totalled 4 million units in September. That’s a decrease of 150,000 listings from the previous month, when supply hit a record high. 

This represents a 1.6% year-over-year increase and marks the fourth consecutive month with growth below 3%, a trend not seen since early 2022. The slowdown highlights how rising regulatory pressure continues to weigh on supply expansion across major European markets, but also suggests the maturity of the European market.

Looking at year-over-year listing growth by country, southern European nations are falling furthest behind:

France remained nearly flat at +0.6%. To put this into perspective, Spain’s total listings have grown by just 4% since 2019, Croatia’s have fallen by 19.8%, and Italy’s have remained flat (+0.1%) compared with an average European increase of 21.2% over the same period.

Italy and Spain exemplify the wider market impact of regulation. In Spain, more than 65,000 listings are currently at risk of delisting due to tightening compliance rules. Cities such as Barcelona, Palma, and Lloret de Mar have introduced stricter zoning laws, licence caps, and enforcement measures that have constrained new supply. Despite these pressures, both Barcelona and Lloret de Mar have seen small year-over-year increases, suggesting some stabilization as hosts adapt to new rules.

In Italy, the situation differs slightly. Markets including Cortona in Tuscany, Castellammare del Golfo in Sicily, and San Teodoro in Sardinia continue to operate below 2019 supply levels. Fragmented local policies, higher taxation, and rising operational costs have discouraged new entrants, keeping supply stagnant. Collectively, these patterns illustrate how regulatory frameworks are reshaping Europe’s STR landscape by constraining growth in key Mediterranean destinations.

Demand Growth Slows as Nights Booked Stabilize

With regulatory pressures and slower supply growth, demand across Europe’s short-term rental market declined slightly in September. Year-over-year growth declined slightly from 0.3% in August to -0.9%, with the extension of summer travel and a stronger shoulder season helping September secure its place as the fourth-highest month for nominal demand this year with 45.5 million demand nights in total.

By contrast, nights booked (reservations made during the month for current or future stays) declined for the third consecutive month. August saw a -4% decline with the trend continuing in September with a year-over-year decline in nights booked of -5.3%. 

Several factors may be behind this leveling off: booking windows across Europe continue to shorten as travelers book closer to their stays, while broader economic uncertainty could be prompting more cautious or last-minute decisions.

Regulatory Pressure Leads to Occupancy Gains Among Southern Markets

In September 2025, occupancy trends across Europe showed a mixed picture. Most markets recorded only minor year-over-year changes with Occupancy remaining flat or declining in 16 of Europe’s top 20 Nations. 

Northern and Central European countries (including Germany, Switzerland, and Finland) saw steady increases in  supply with  demand remaining largely flat leading to declining occupancy rates. Similarly, Norway and Poland experienced growth above 5% in both demand and listings, balancing one another and preventing significant occupancy gains.

Southern Europe, however, told a different story. Spain and Italy were the only major markets to have flat or slightly growing occupancy, driven by sharp supply reductions amid intensifying regulatory pressure. 

In Spain, stricter enforcement measures and the removal of tens of thousands of listings created a supply squeeze that lifted occupancy despite modest year-over-year demand declines. Italy followed a similar pattern: fragmented regulations and limited new supply supported higher occupancy levels even as demand grew more slowly than in the north.

Elsewhere, market performance remained largely stable. France, Ireland, and Denmark experienced slight declines in occupancy, while Croatian occupancy dropped significantly as demand decreased. Overall, the data highlight a clear regional divide where regulation-induced supply constraints in southern Europe are pushing occupancy higher, while other markets continue to grow through supply expansion.

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RRI Surpasses ADR for the First Time Since January 2025

Average daily rates (ADR) declined further in September, down -2.1% year-over-year compared to a -1.6% decline in August. In contrast, the Repeat Rent Index (RRI), which tracks pricing changes among existing operators, remained resilient with a 4.6% YoY increase, up from 4.2% in August. 

This marks the strongest RRI growth since December 2024 (+4.8%) and is well above the 12-month average of 3.2%. The divergence between ADR and RRI indicates stronger pricing power among established hosts, as limited new supply and high entry barriers continue to shape rate dynamics.

Spain remained one of Europe’s strongest performers. Despite continued regulatory pressures and widespread delistings, the supply squeeze improved occupancy and enabled hosts to raise prices. In September, Spain’s ADR rose 1.3% as occupancy decreases slightly by -0.1%, leading to a 1.1% growth in RevPAR. This demonstrates that tighter inventory can sustain higher revenue even amid softer demand.

Italy followed a similar trend. Occupancy was up 2.5% year-over-year despite a -0.7% drop in ADR, suggesting volume-driven rather than rate-driven growth. Denmark, Ireland, and the Czech Republic also posted solid results, with RevPAR increasing between 3.6% and 8.6%. 

By contrast, Switzerland, Belgium, and the Netherlands saw occupancy declines despite rising or flat ADRs, reflecting a more competitive pricing environment and greater supply. Overall, Spain’s September results underscore a broader European pattern. When regulation limits supply, remaining operators benefit from stronger occupancy and pricing resilience, driving RevPAR gains even as demand slows.

Spotlight on Greece and the Impact of Shoulder-Season Travel

As Greece’s high season draws to a close, September data shows a -5.2% year-over-year decline in ADR to €145 and a -5.4% drop in RevPAR to €85. Occupancy remained flat at  -0.2% compared to last year, reaching 58%.

In recent years, visitor behavior has begun to shift, with more travellers choosing to visit during the shoulder seasons. The shoulder season in this case falls in March to May and September to October. 

Several factors explain this trend. Rising temperatures and frequent summer heatwaves are encouraging travelers to seek cooler months, while lower prices outside the high season add appeal. Growing concerns about overtourism are also prompting many to avoid the crowded summer period in favour of a more relaxed experience.

The data highlights this gradual seasonal flattening. In Athens, the share of annual demand during the shoulder months increased from 42% in 2019 to 46% in 2024, while summer’s share fell from 31% to 29%. Winter demand declined from 27% to 25%, reinforcing the city’s strength as a year-round destination.

Rhodes, traditionally reliant on summer travel, shows a similar pattern. Shoulder-season demand rose from 37% in 2019 to 41% in 2024, while summer’s share dipped from 51% to 49%. Although winter still accounts for just 10% of annual stays, the trend suggests visitors are extending trips beyond the peak months.

Overall, the data points to a structural broadening of Greece’s tourism calendar. Milder weather, lower prices, and fewer crowds are helping spread demand more evenly across the year. This shift benefits both urban and leisure destinations.

Gain insights into the revenue and occupancy trends in your market.

Europe’s short-term rental market in September 2025 saw steady demand, rising occupancy, and tighter supply driven by new regulations.

Airbnb Occupancy Rate: Insights and Tips

Key Takeaways
The Airbnb occupancy rate is a vital metric for success and is calculated by dividing the number of booked nights by the available nights. The occupancy rate reflects how often your property is rented out compared to its availability.
Understanding and monitoring your occupancy rate is key to maximizing earnings, as it indicates property performance and influences pricing and marketing strategies.
How you interpret your occupancy rate is essential; high and low occupancy rates don’t always mean what you think.

Successful Airbnb hosts are obsessed with bookings, and for good reason—it’s the name of the vacation rental game.

When hosts talk about Airbnb bookings, they're really talking about occupancy rate: the percentage of available nights that guests book. Monitoring your occupancy rate is important because it shows how well your Airbnb stacks up against the competition. The occupancy rate can also indicate whether you need to switch up your strategy or pricing to boost your rental income.

Whether you’re new to short-term vacation rentals or an industry expert, it’s important to understand the methodology and best practices behind your occupancy rate. 

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What is Airbnb Occupancy Rate?

In its simplest form, the occupancy rate is the percentage of time a vacation rental property is booked compared to the time it is available for bookings. 

To make understanding occupancy rate easier, let's use a straightforward example.

Imagine you own a cabin that's available for guests all year. That means it could potentially be booked for 365 nights. Throughout the year, guests book your cabin for 90 of those nights. We can use that number to calculate the occupancy rate and see how often your property was rented out compared to its availability. 

By dividing the booked nights (90) by the total available nights (365) and multiplying by 100 to get a percentage, we find an occupancy rate of approximately 25%. This means your cabin was rented out for about a quarter of the year.

Reasons Why Your Occupancy Rate Matters
Maximize Revenue Potential: Physical products can be sold at any time if they’re not immediately purchased. However, a vacant vacation rental represents a unique challenge. If a property goes unbooked for a night, it's impossible to "sell" that night again. Each unbooked night directly translates into a tangible loss of potential income. That’s why the occupancy rate is crucial for owners looking to maximize their earnings. 
Reveal Property Performance Insights: Consider two similar properties in the same location. Property A consistently achieves an 80% occupancy rate, while Property B struggles to reach 50%. This stark difference signals that Property A might be better aligned with guest preferences or have better marketing. Analyzing occupancy rates helps identify performance gaps and areas for improvement, whether that's improving your listing or adjusting pricing strategies to meet market demand.
Determine Market Demand and Inform Pricing Strategies: High Airbnb occupancy rates indicate strong market demand, while low occupancy rates can reflect lower demand. This information informs your pricing strategy. Let’s consider an apartment near a convention center that has high occupancy during events but low occupancy rates otherwise. This trend suggests that you may want to consider adjusting your rates in relation to the convention center’s event calendar. Dynamic pricing takes into consideration trends like this and uses them to optimize revenue during peak and off-peak times.
Guide Investment and Enhancement Decisions: Evaluate occupancy rates before and after making upgrades, like installing high-speed internet or renovating the kitchen, to assess the return on investment (ROI). This analysis is crucial for prioritizing property improvements that make your listing more appealing and, subsequently, improve the occupancy rate.

Learn about Dynamic Pricing

How to Calculate the Airbnb Occupancy Rate

Understanding the occupancy rate of your Airbnb property is pivotal for optimizing your rental strategy. Yet, it all comes down to a single equation.

Airbnb Occupancy Rate Calculation

Reserved Days / Available Days x 100 = Occupancy Rate

With that in mind, here's a simple guide on how to find Airbnb occupancy rates:

Step-by-Step Calculation
Determine the Total Number of Reserved Days: Start by counting how many days guests booked your property over a specific period of time, usually 12 months. 
Identify the Total Number of Available Days: Calculate the total days your property was available for booking over the same time period, excluding any days you blocked off for personal use.
Calculate the Occupancy Rate: Divide the total number of reserved days by the total number of available days, then multiply the result by 100 to convert it into a percentage. These steps represent AirDNA’s version of an Airbnb occupancy rate calculator.

Example Calculation:

Imagine you own a house on the water in North Carolina and you're evaluating its performance on Airbnb over the last 12 months. The property was available for 340 days and booked for 240 days within this timeframe.

Reserved Days: 240

Available Days: 340

Occupancy Rate Calculation: 240/340 x 100 = 70.58%

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Interpreting Your Occupancy Rate

While a 70% occupancy rate may seem ideal, signaling guest satisfaction and consistent revenue, it's essential to delve deeper. High occupancy could indicate underpricing, meaning you might be missing out on potential income. It's crucial to balance occupancy with your average daily rates (ADRs) to maximize revenue. 

Think about it: A property with a 50% or 60% occupancy rate could earn more revenue than one that’s booked 70% of the time. It’s all relative to pricing. A property booked more often at $100 per night may not outearn a property that’s booked less often at $300 per night.

It’s important to ask yourself: Do I want higher occupancy or higher average daily rates (ADRs)? An accurate data tool can help you sort out which strategy is best for your bottom line. (Why guess when you can know exactly what you should be charging guests?)

What is a Good Airbnb Occupancy Rate?

Average Airbnb occupancy rates vary from market to market and year to year. You can see how the national average occupancy rate has fluctuated:

Trailing twelve months (TTM), March 2023 to February 2024: 55.1%
2023: 55.4%
2022: 58.6%
2021: 60.3%

The occupancy rate in 2022 reflects a recovery trend in the industry after the pandemic brought the average occupancy rate into the low fifties in 2020.

Determining a "good" rate is less about finding a universal number and more about understanding local market conditions, historical performance, and your personal goals for the property. Knowing your market's average helps inform decisions on pricing, marketing, and operations.

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Average Airbnb Occupancy Rates by City: Top 10 Highest Occupancy Rates

If you’re new to the short-term rental market, understanding the average airbnb occupancy rates by city can help you choose a location that’s likely to generate a healthy revenue.

These markets had the highest trailing twelve-month short-term occupancy rates (March 2023 to February 2024):

Kauai, Hawaii: 74.4%
Oahu, Hawaii: 73.4%
Maui, Hawaii: 72.4%
Maine DownEast/Acadia Coastal: 67.7%
Big Island, Hawaii: 67.1%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
 Outer Banks, North Carolina: 64.3%

Many of the markets with the highest occupancy rates are located in Hawaii. However, seeing as the vacation rental market in Hawaii is subject to fairly heavy restrictions, let’s consider the markets with the highest occupancy rates in the contiguous U.S.

Maine DownEast/Acadia Coastal: 67.7%
New York City: 65.5%
Denver: 65.3%
Anaheim, California: 65.2%
Boulder, Colorado: 64.3%
Outer Banks, North Carolina: 64.3%
San Diego: 64.2%
Sarasota, Florida: 64.1%
Lincoln City/Newport, Oregon: 64%
Gatlinburg/Pigeon Forge, Tennessee: 63.9%

Average Occupancy Rates by City: Top 10 Lowest Occupancy Rates

The average Airbnb occupancy rates by city in the following areas leave hosts wanting more. These markets currently have the lowest trailing twelve-month occupancy rates:

Oxford, MS: 34.9%
Big Bear, CA: 39.6%
Southbend, Indiana: 40.4%
Texas East Area: 41.4%
College Station, Texas: 41.8%
Mississippi area: 42.1%
Augusta, Georgia/South Carolina: 42.8%
Pocono Mountains, Pennsylvania: 43.2%
California South area: 43.7%
 Louisiana area: 43.9%

If you’re looking to invest in vacation properties, avoid these markets because you likely won't get a good ROI. Property managers and hosts in these markets may need to lower their rates to encourage guests to book with them rather than other Airbnbs.

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Why Airbnb Occupancy Rates Differ from Hotels 

Hotels offer a consistent product and pricing strategy, but STRs vary widely in terms of property type, location, amenities, and host engagement. It’s crucial to assess STR occupancy differently than traditional hotel occupancy in order to accurately reflect performance in the vacation rental market.

AirDNA only considers active listings in its occupancy rate calculations, whether it’s for a specific market or when someone uses our Airbnb calculator. We define active as having at least one calendar day classified as reserved or available during the reporting period. If we included every available night from every available listing in our occupancy calculation, it would return a falsely low occupancy rate. This is due to variations in vacation rental host behaviors and motivations. We’re talking about host attentiveness in managing listing calendars and their responsiveness to reservation requests.

Here are three host cases that would falsely skew occupancy downward if we included them in the occupancy rate calculation: 

Event-Based Hosts: Hosts who list properties temporarily to take advantage of specific events, causing temporary market fluctuations that don’t reflect regular hosting activity.

"Make Me Move" Hosts: Hosts who set their prices significantly above the market rate, using Airbnb as an opportunistic platform rather than a committed hosting venue.

Dormant Listings: Properties that appear available but haven't seen a booking for months, often due to a shift in host priorities or property usage.

AirDNA ensures that its occupancy rate calculations reflect genuine market activity and trends by focusing on active listings. We stand by the accuracy of our data and use this methodology to help stakeholders understand the true dynamics of the STR market. Our insights are distinct from those that can be gleaned from hotel occupancy data.

How to Get High Occupancy on Airbnb

Occupancy rate may not be a complete picture of your property’s performance, but it’s still important. After all, you’re only making money if guests are staying at your property. If your occupancy rate is falling short of expectations, take these data-driven steps to learn how to increase occupancy rate on Airbnb. 

Increase Your Airbnb Occupancy Rate

Occupancy Rate is Just the Beginning  

According to ou annual best places to invest report, most of the destinations at the top of the list have occupancy rates of 60-70%. If you're interested to learn more about a market's occupancy rate, visit the AirDNA app.

While Airbnb occupancy rates are important, you need to track a range of metrics to assess how your Airbnb is performing overall. Our insights can help you optimize your properties for the best possible occupancy rate, average daily rate (ADR), revenue per available rental (RevPAR), and overall profitability.

Frequently Asked Questions:
What is a good occupancy rate for an Airbnb?

There is no universal “good" occupancy rate. Determining whether your occupancy rate is optimized requires understanding local market conditions, historical performance, and your personal goals for the property. Keep in mind that lower occupancy rates don’t necessarily indicate lost revenue. If you are charging a higher average daily rate, you might not need as many bookings to make as much money as a competitor with higher occupancy but a lower nightly rate.

Where can you see Airbnb occupancy rates?

You can see the occupancy rate for your listing as well as that of competitors in the area on your AirDNA dashboard. 

Find out what “Airbnb occupancy rate” refers to, how to calculate it, and tips for improving your occupancy rate and increasing your STR income.

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European Review September 2025: Market Holds Steady as Regulations Tighten and Growth Slows

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