Europe’s short-term rental market showed signs of losing momentum in October, according to the latest analysis by AirDNA. With supply rising and demand edging slightly downward, occupancy rates declined across most major markets, while RevPAR continued its downward trajectory. The picture is further shaped by softer forward demand heading into 2026, despite a few encouraging signals toward the end of the year.
Trends in Europe’s short-term rentals according to AirDNA
Supply increases by 1.8% with more listings entering the market
In October, available listings in Europe rose by 1.8%, reaching 3.6 million in total. The continued expansion reflects the steady flow of properties entering the market, both from individual hosts and professional managers. However, this increase in supply appears to be putting pressure on performance indicators—especially during a period where seasonality typically tempers activity.
Slight decline in demand across European Airbnb listings
Despite the additional supply, demand dropped by 0.5%, pointing to a gradual deceleration after months of strong performance. While modest, this decline indicates that travelers are becoming more selective, as household budgets and cost-of-living pressures influence decision-making.
Falling occupancy and performance across European Airbnb markets
Occupancy drops to 54.9% – Lower rates in 15 of the Top 20 markets
Occupancy across Europe fell to 54.9%, down 1.8% year-on-year. The decrease highlights the imbalance between supply and demand. Fifteen of Europe’s twenty largest markets recorded lower occupancy figures, underscoring a continent-wide softening in activity.
RevPAR and ADR remain under pressure across Europe
RevPAR—one of the sector’s key performance metrics—declined by 3.3%, settling at €66. The drop stems from both lower occupancy and stable-to-declining rates in increasingly competitive markets.
ADR also showed subdued movement, suggesting that the elevated pricing levels seen in previous months are proving difficult to sustain during a period of milder demand.
European bookings through 2026 – What AirDNA’s forecasts show
Total bookings trending 2% below 2025 levels
According to AirDNA, forward bookings for stays through May 2026 are approximately 2% lower compared with the same period last year. This shift indicates a more cautious approach from travelers, who appear to be booking closer to their intended travel dates.
Weak demand expected for March and April (–5% to –7%)
Demand looks particularly soft for March and April, showing declines of 5% to 7%. This trend coincides with heightened uncertainty around household spending and intensifying competition among popular destinations across Europe and the Mediterranean. As a result, many hosts and managers may need to adjust pricing strategies to secure higher booking volumes.
Positive indicators in Europe’s short-term rental market
Stronger winter demand – December 2025 up by 3%
Despite the pressure on performance metrics, there are bright spots. Bookings for December 2025 are up 3%, suggesting robust winter demand. This trend reflects travelers’ growing interest in winter getaways and city breaks—benefiting markets such as Austria, Germany, and Central Europe.
May 2026 in line with last year – Potential stabilization ahead of summer
Booking levels for May 2026 match last year’s performance, a development interpreted as an early sign of stabilization heading into the 2026 summer season. While demand is not showing strong momentum, this steadiness may signal a return to more predictable traveler behavior after a year marked by volatility.
Where the European short-term rental market is heading
Europe’s short-term rental sector is entering a period of mild slowdown, marked by a small dip in demand, rising supply, and weaker performance in occupancy and RevPAR. Although forward demand for 2026 starts from a softer base, the end of 2025 and early signs for next year offer room for cautious optimism. Stable booking levels in May, combined with strengthening winter demand, suggest that the market remains resilient—even as conditions grow more challenging.
