A new report from AirDNA and hotel data provider STR reveals that short-term rentals are closing the gap with hotels, especially in less populated U.S. areas. While hotels dominate with 85% market share, short-term rentals have nearly doubled their share from 8% in 2018 to 15% now. The report notes that demand for rentals was up 24% year-over-year in rural areas, while urban growth lagged due to tighter regulations. Analysts also see a rise in "bleisure" stays and the popularity of three-bedroom units in driving rental growth.

"While hotels still account for 85% of the U.S. market, short-term rentals’ 15% share is nearly double the 8% it held in 2018, said Jamie Lane, chief economist at AirDNA.

“This industry is growing more and more,” he said. “People are trying it for the first time, and seeing that for certain types of travel, it is a much better fit for how you want to interact and have accommodation when you go on vacation.”

Short-term rentals may still be riding a wave of interest stirred by the COVID-19 pandemic, as a new report shows them closing the gap with hotels in the United States, especially in less populated areas.

New report shows short-term rentals gaining ground on hotels

New Report Shows Short-Term Rentals Gaining Ground on Hotels (Phocuswire)