Online Home Rental Services Market size is set to grow by USD 28.01 billion from 2024-2028, High real estate prices make homeownership unaffordable boost the market, Technavio

NEW YORK, July 3, 2024 /PRNewswire/ -- The global online home rental services market size is estimated to grow by USD 28.01 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 14.72% during the forecast period. High real estate prices make homeownership unaffordable is driving market growth, with a trend towards growth in demand for small innovative home structures. However, government policies for promoting housing poses a challenge. Key market players include 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..

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Market Driver

The global online home rental services market is experiencing significant growth due to the increasing demand for alternative housing solutions in densely populated cities. With the affordability of traditional housing becoming a challenge in metropolitan areas like New York, Beijing, Shanghai, Hong Kong, and Tokyo, small home structures such as capsule apartments, box apartments, and micro-apartments are gaining popularity. The vacation rental marketplace is also contributing to this growth, as platforms like Airbnb, HomeAway, and VRBO provide homeowners with an opportunity to rent out their properties when they are away. These innovative business models are driving the expansion of the online home rental services market.

The online home rental services market is experiencing significant growth, with an increasing number of consumers turning to digital platforms for finding and booking properties. Corporate and temporary residents, in particular, are driving this trend, seeking convenience and flexibility in their housing solutions. Customers value the ability to search for properties based on location, price, and amenities, and to make secure payments online. The use of technology, such as virtual tours and instant messaging, is also enhancing the user experience. Additionally, the integration of artificial intelligence and machine learning algorithms is enabling more personalized and efficient services. The market is expected to continue expanding, with digital solutions becoming the norm in the home rental industry.

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Market Challenges

• Government initiatives promoting affordable housing in countries like China, India, Australia, and others are increasing the number of homebuyers, thereby limiting the demand for rented houses. This includes schemes like India's Housing for All and Australia's National Affordable Housing Agreement. In July 2022, India's Union Budget introduced a new rental housing policy, offering tax benefits for first-time buyers, expected to boost sales of new homes and increase housing availability in both small cities and metro areas. These policies are restricting the expansion of the global online home rental services market.

• The online home rental services market is experiencing significant growth, with an increasing number of people turning to digital platforms to find and book their accommodations. However, this market also faces several challenges. One major challenge is ensuring the security and trust of transactions, as consumers require a safe and reliable way to pay for their rentals. Another challenge is managing the large inventory of properties available, making it essential for platforms to implement effective search and filtering tools. Additionally, maintaining accurate and up-to-date property listings is crucial to attracting and retaining customers. Furthermore, regulatory compliance and competition from other marketplaces pose additional challenges for players in this industry.

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Segment Overview 

This online home rental services market report extensively covers market segmentation by

1. Type

• 1.1 Flats

• 1.2 Semi-detached houses

• 1.3 Detached houses

Rental Category

• 2.1 Monthly

• 2.2 Weekly

• 2.3 Daily

• 2.4 Yearly

Geography

• 3.1 North America

• 3.2 Europe

• 3.3 APAC

• 3.4 South America

• 3.5 Middle East and Africa

1.1 Flats- The increasing preference for flats among the growing millennial population and urban population expansion will fuel the demand for online home rental services. This trend is driven by the high density of cities, limiting available land for new construction. Various flat types, such as studio apartments and service flats, cater to diverse customer needs, boosting the market's growth. For example, the rising demand for studio apartments among single individuals and small families in the 25-34 age group will significantly contribute to the online home rental services sector. These demographic shifts and customer preferences are anticipated to drive the growth of the flats segment in the forecast period.

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Research Analysis

In the rapidly evolving urban landscape, the Online Home Rental Services Market has emerged as a significant business opportunity for landowners, millennial consumers, and hospitality chains alike. Single family residences and flats in metropolitan areas are increasingly being listed on online platforms, transforming the real estate industry on a rental basis. E-commerce and digital innovations have revolutionized the way potential tenants search for and secure their new homes. Virtual economies and technological infrastructure have streamlined the rental process, enabling agents and brokers to efficiently connect businesses with renters. Budget-conscious consumers can now easily browse apartment listings and compare prices, making the rental market more accessible and competitive. Overall, the Online Home Rental Services Market represents a dynamic and exciting space for innovation and growth.

Market Research Overview

The Online Home Rental Services market is a significant segment of the real estate industry, offering a platform for property owners to rent out their properties to tenants. This market has gained immense popularity due to its convenience and accessibility. With the use of technology, potential renters can easily browse through various listings, compare prices, and make bookings online. The market caters to different types of properties, including apartments, houses, and vacation rentals. The demand for online home rental services is driven by factors such as increasing urbanization, the need for flexible living arrangements, and the growing preference for contactless transactions. The market is expected to continue its growth trajectory in the coming years, offering numerous opportunities for investors and entrepreneurs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type

• Rental Category

• Geography

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio