Enjoy complimentary customisation on priority with our Enterprise License!
The online home rental services market size is projected to increase by USD 28.01 billion at a CAGR of 14.72% between 2023 and 2028. The growth of the market depends on several factors, including high real estate prices that make homeownership unaffordable, growth in demand for rented homes, and reduction in housing space due to an increase in urban population density. The population growth in metropolitan cities, driven by economic activities like manufacturing, trade, and employment, has led to an increase in migration across countries worldwide. Consequently, the demand for rented homes has risen due to the influx of migrants into these cities. In 2022, the demand for rental apartments in and around US cities grew by 11% compared to the previous year. According to a survey conducted by Freddie Mac, a mortgage company, consumers now prefer renting to buying a house.
For More Highlights About this Report, Download Free Sample in a Minute
The market in urban areas has experienced significant growth, with an increasing number of single family residences and vacation homes being listed for rent on E-commerce platforms. Virtual economies and digital innovations have transformed the Real Estate Industry, enabling landowners and hospitality chains to reach potential tenants through Online house rental services. Technological infrastructure has become essential for businesses and brokers to effectively manage apartment listings and cater to the budget-conscious millennial consumers. Renters can now easily browse and compare rental basis options from various landlords, making the process more convenient and efficient. Overall, the market presents a lucrative business opportunity for all stakeholders involved. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The real estate industry in countries such as the US, France, the UK, Germany, Sweden, Spain, Australia, China, and India has experienced a significant upswing in prices following the economic crisis. In the aftermath of the economic crisis, urban areas worldwide have experienced a significant increase in real estate prices, particularly for single family residences and flats. This trend is observable in metropolitan regions of countries like the US, France, the UK, Germany, Sweden, Spain, Australia, China, and India. The real estate industry's inability to cater to the escalating demand from consumers has led to an annual growth of over 13% in housing prices in the US, as of July 2021.
Further, cities such as San Francisco, Oakland, Los Angeles, New York, and Seattle exhibit price-to-rent ratios exceeding 35. E-commerce and digital innovations have revolutionized the housing sector, enabling online home rental services. Millennial consumers increasingly prefer this option due to its convenience and affordability. Landowners, hospitality chains, and businesses have capitalized on this technological infrastructure, offering apartment listings on web portals accessible via smart phones and an internet connection. Online platforms have streamlined the renter-landlord process, providing potential tenants with a vast array of options. Policymakers, builders, lenders, estate agencies, and brokerages have adapted to this business opportunity, offering online property viewings and tenant processes. The economic growth spurred by these digital advancements has attracted migration to cities, further fueling the demand for online home rental services. Consequently, the demand for rental properties has exceeded supply, with a 33% drop in available rental properties in the country.
Growth in demand for tiny home structures is the primary trend in the online home rental services market. In metropolitan areas like New York, Beijing, Shanghai, Hong Kong, and Tokyo, the escalating prices of single family residences and vacation homes have driven urban people towards alternative housing solutions, such as capsule apartments, box apartments, and micro-apartments. In 2020, the average cost of a house in Hong Kong reached approximately USD 1.2 million, according to real estate industry estimates. The scarcity of housing in these areas has made it an unattainable luxury for many consumers.
Also, E-commerce, digital innovations, and technological infrastructure have transformed the rental market, enabling online platforms for apartment listings and rentals on a rental basis. Millennial consumers, families, and renters on a budget can now easily search for and secure housing through these online services. Brokerages and estate agencies have also embraced this technological shift, streamlining tenant processes and facilitating online property viewings. Such innovative ideas and business models will drive the growth of the online home rental services market industry during the forecast period.
Competition due to fragmented markets and low penetration in emerging markets is the major challenge impeding the market growth. In metropolitan areas, the rise of affordable housing initiatives by various governments, including India's Housing for All and Australia's National Affordable Housing Agreement, is influencing the urban housing market. This trend is expected to increase the number of homebuyers, potentially restricting the demand for rented properties. Single family residences, flats, and vacation homes are increasingly being listed on e-commerce platforms, creating a digital economy for real estate. Millennial consumers, families, and potential tenants are utilizing online platforms, smart phones, and an internet connection to search for apartment listings on web portals.
Businesses, including landlords, hospitality chains, agents, and brokerages, are leveraging technological infrastructure to streamline tenant processes and facilitate online property viewings. The real estate industry is adapting to these digital innovations, presenting a significant business opportunity for those involved in the housing sector, including builders, lenders, estate agencies, and online property marketplaces. Economic growth and migration continue to fuel the demand for housing solutions, making this an exciting time for innovation in the rental market. Thus, the low returns from the emerging market are restricting the growth of the market during the forecast period.
The market share growth of the flats segment will be significant during the forecast period. The urban population's increasing preference for flats over single family residences, coupled with the trend of Vacation home homes, is driving the growth of the online home rental services market.
Get a glance at the market contribution of various segments Download the PDF Sample
The flats segment was valued at USD 9.86 billion in 2018. This market is being fueled by e-commerce, virtual economies, and digital innovations, which provide technological resources for millennial consumers in metropolitan areas. Real estate industry players, including landowners and hospitality chains, are leveraging online platforms to reach potential tenants on a rental basis. Business opportunities exist for agents, brokers, and web portals, as renters use smart phones and internet connections to search for apartment listings that fit their budgets. The housing sector is experiencing economic growth through these technological advancements, influencing policies and attracting the attention of builders, lenders, estate agencies, and tenant processes. Online property viewings are becoming the norm, making the market a significant business opportunity for all involved.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
The market in North America is predominantly shaped by population growth and urbanization, particularly in the US and Canada. Migrants moving to metropolitan cities for employment opportunities in manufacturing, trade, and other industries fuel the demand for residential development. Government laws, home ownership trends, and the involvement of corporate developers with financial backing contribute to the market's expansion. Customer centricity, trust, and the IT/ITeS industry play crucial roles in the sector's growth. Real estate and property developers, architects, and 3D design firms collaborate to create innovative solutions for potential investors. Connectivity, digital transformation, big data, and IT solutions are essential components of the market's development. Staffing and human resources management are also significant aspects to ensure efficient operations.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
9flats PTE Ltd. - The company offers online home rental services in top cities like Berlin, London, Dubai, and Paris as its key offerings. This segment focuses on providing a platform for renting a spare room, apartment, or house from a local or renting out place.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
You may also interested in below market reports:
Short Term Vacation Rental Market: Short Term Vacation Rental Market Analysis Europe, North America, APAC, Middle East and Africa, South America - US, China, UK, France, Italy - Size and Forecast
Vacation Rental Market: Vacation Rental Market Analysis Europe, North America, APAC, Middle East and Africa, South America - US, China, UK, France, Italy - Size and Forecast
Europe - Vacation Rental Market: Europe - Vacation Rental Market by Mode Of Booking, Management and Geography - Forecast and Analysis
Online home rental services have gained significant popularity in recent times, with more and more people opting for flexible and convenient housing solutions. Singleness, tech-savvy consumers, and the rise of the sharing economy are key factors driving the growth of this market. Homes, properties, and landlords are leveraging technology to offer a wide range of options, from apartments to entire homes, to tenants. The platform allows tenants to search, compare, and book properties online, making the process more efficient and convenient. Companies such as Airbnb and Vrbo have revolutionized the industry by providing a marketplace for property owners to rent out their homes to travelers. The trend is expected to continue, with more consumers turning to online rental services for their housing needs. Properties, tenants, and technologies play a crucial role in the online home rental services market.
Industry Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.72% |
Market growth 2024-2028 |
USD 28.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.52 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, UK, China, Canada, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
9flats.com PTE Ltd., Airbnb Inc., Avail, BoutiqueHomes, CoStar Group Inc., Elite Destination Homes, Expedia Group Inc., HomeToGo GmbH, Lodgis, LVH Global Inc., MakeMyTrip Ltd., NestAway Technologies Pvt Ltd., Oravel Stays Ltd., Rentberry Inc., Rentalo.com Inc., Upad Ltd., Wyndham Destinations Inc., Zillow Group Inc., and Zumper Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Rental Category
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.