European short-term rental rates rose 6.8% in May 2026

Updated 15 October 2026. After a source check by the standards desk, 3 sentences were removed because no source confirmed their specifics. Corrections log.

On June 12, 2026, AirDNA reported that average daily rates for short-term rentals in Europe rose 6.8% year-over-year in May 2026 to €140. This pricing recovery occurred even as demand nights fell 1.1% year-over-year to 39 million nights, marking the ninth consecutive month of demand declines across the continent.

The report showed signs of stabilization in the European short-term rental market after a softer spring. While supply growth slowed to 2.6% year-over-year, the market absorbed the additional inventory more effectively than in the earlier months of 2026, allowing the average occupancy rate to rise to 58.3%.

What the data shows

According to the figures published by AirDNA, Europe had 3.86 million available short-term rental listings in May 2026, representing a 2.6% increase compared to May 2025. This pace of expansion was closely aligned with the 2026 average growth rate of 2.7%. In absolute terms, the European market added approximately 99,000 listings since May 2025 and more than 265,000 listings since May 2024.

Demand nights in Europe fell 1.1% year-over-year to 39 million nights. AirDNA reported that this was the ninth consecutive month of declining demand, though the pace of the decline moderated. The drop in May 2026 was the third-smallest during this nine-month period, showing a notable recovery from the declines of 6.2% recorded in April 2026 and 5.6% recorded in February 2026. Nights booked, which measures reservations made during the reporting month for current and future stays, fell 2.9% year-over-year, following a decline of 2.6% in April 2026.

Despite the slight drop in demand nights, the average occupancy rate grew to 58.3%, an increase of 1.1% year-over-year. This growth was supported by a decline in available listing nights across much of the continent, including 12 of Europe's top 20 national markets. Revenue per Available Rental Night (RevPAR) rose 8% year-over-year to €81.6.

Average daily rates (ADR) rose 6.8% year-over-year to €140, marking the third consecutive month of rate recovery. This was the first time since late 2024 that ADR increased for three consecutive months. However, the Repeat Rent Index (RRI), which tracks pricing changes among existing operators and excludes the impact of new listings, increased by a more modest 2.2% year-over-year. This represented a deceleration from the 6.1% RRI growth recorded in April 2026.

Performance at the national level varied significantly. Among Europe's top 20 markets, 19 recorded ADR growth and 17 posted year-over-year gains in RRI. In Spain, available listings fell 14% year-over-year. In Greece, supply fell as a result of regulations introduced in October 2025, and in Croatia, supply fell in May 2026, marking the tenth consecutive month of declining supply. Conversely, Germany recorded a supply increase of 6.3% year-over-year. The five largest European markets grew by an average of 1.9% in supply, which was below the wider European average of 2.6%.

How it was measured

The performance figures were measured and analyzed by AirDNA, a short-term rental data and analytics provider. The data was published on June 12, 2026, and updated on June 16, 2026, covering the performance period of May 2026. AirDNA tracked active listings, demand nights, occupancy rates, ADR, and RevPAR across European countries and specific city markets.

To isolate pricing trends, AirDNA utilized the Repeat Rent Index (RRI). This index tracks price changes solely among existing operators who were active in both comparison periods, thereby excluding the pricing influence of newly listed properties. The report also incorporated macroeconomic indicators from the European Central Bank (ECB) and European sentiment surveys, alongside forward-looking booking data for the summer months of June, July, August, and September 2026. Event-specific demand was calculated by isolating performance during the specific dates of the Avignon festival and Bad Bunny's European tour concert dates compared to baseline periods.

What moved these numbers

The figures in May 2026 were moved by a combination of macroeconomic pressures, regulatory interventions, and major localized cultural events. On the macroeconomic front, inflation in the Euro Area remained above the European Central Bank's 2% medium-term target for the third consecutive month, rising to 3.2% in May 2026, its highest level since September 2023. Core inflation, which excludes energy and food, rose to 2.5%, driven in part by the economic impacts of the conflict in Iran feeding through to consumer prices. Consequently, the European Central Bank was widely expected to raise its deposit rate to 2.25% at its June 11, 2026 meeting, with further hikes anticipated later in the year. Economic growth forecasts were also revised downward for the third consecutive time since March 2026, with GDP growth expected to reach 0.7% for the year.

Regulatory actions in key Mediterranean markets significantly altered supply dynamics. In Spain, available listings fell 14% following delisting efforts introduced at the beginning of the third quarter of 2025. In Greece, supply fell as a result of regulations introduced in October 2025. In Croatia, supply fell in May 2026, marking the tenth consecutive month of declining supply.

Major events also drove localized demand spikes. Bad Bunny's European tour, named the Debí Tirar Más Fotos tour, generated approximately 28,000 incremental demand nights and nearly €20 million in additional short-term rental revenue during the concert dates alone, representing a 35.9% increase in revenue compared to the same period in 2025. London and Paris generated absolute revenue gains of €6.3 million and €3.2 million, respectively. In contrast, Barcelona recorded a 14.4% decline in demand and Madrid recorded a 2.3% decline in demand during the tour dates, though Madrid's ten-show residency still increased revenue by 37.5%, adding €4.8 million as hosts captured premium rates, while Barcelona's revenue remained flat, declining 0.7%.

Who was affected

The trends in May 2026 affected short-term rental hosts, property managers, and investors differently depending on their tier and location. Operators of higher-priced properties experienced the strongest performance. Growth remained positive across all price tiers, led by the upper segments, with Midscale, Upscale, and Luxury segments outperforming Economy and Budget segments. May 2026 was the first month of the year in which occupancy increased across all price tiers, supported by stronger post-Easter travel activity. This K-shaped trend, where higher-priced properties outperformed more affordable segments, continued a pattern observed throughout the first quarter of 2026.

By property size, hosts of mid-sized listings were the primary beneficiaries. Two- and three-bedroom properties recorded the strongest year-over-year occupancy growth. These mid-sized listings also maintained higher occupancy rates than larger properties with four or more bedrooms, while remaining close to the performance of studios and one-bedroom rentals.

Hosts in regulated markets with declining supply, such as Spain, Greece, and Croatia, experienced increased pricing power. In Spain, demand declined at a slower rate than supply, concentrating bookings among fewer active hosts and supporting stronger pricing. Furthermore, new supply entering these markets was skewed toward higher-priced inventory, which helped explain the gap between ADR and RRI growth and suggested that regulations designed to improve market quality by reducing lower-quality listings were having a tangible effect on active inventory.

In France, short-term rental hosts in Avignon faced an extreme concentration of seasonal demand. The Avignon summer festival, running from July 4 to 26, accounted for more than half of the city's total summer demand. Daily demand in Avignon was projected to nearly triple during those 23 days, climbing from roughly 730 nights per day across the rest of the summer to around 2,290 nights at the festival's peak. Operators who prepared months in advance by setting minimum length-of-stay requirements and maintaining premium pricing were best positioned to capture this concentrated demand.

What the figures do not tell you

While the figures indicate a recovery in average daily rates, they do not provide a complete picture of host profitability. The report noted that the 6.8% increase in ADR was largely driven by a mix shift toward higher-priced inventory rather than stronger pricing power among existing hosts, as evidenced by the much lower 2.2% increase in the Repeat Rent Index. Therefore, individual hosts who did not upgrade their properties may not have experienced the rate increases suggested by the headline average daily rate of €140.

Additionally, the data on event-driven demand, such as the impact of Bad Bunny's tour, only captured the concert dates themselves. AirDNA noted that these figures likely understated the tour's true economic impact, as many fans extended their trips beyond the concert dates, creating additional demand before and after the events that was not isolated in the incremental demand night calculations.

The figures also do not reveal the long-term impact of the regulatory changes in Spain, Greece, and Croatia. While the immediate effect was a reduction in active listings and an increase in average daily rates, the data does not show whether these regulations succeeded in their broader goals of improving market quality or housing availability, nor does it show the financial impact on hosts who were forced to delist.

What to take from it

The performance metrics from May 2026 provide several key lessons for short-term rental operators, managers, and investors looking to navigate shifting demand and regulatory environments:

• Compare headline ADR growth against Repeat Rent Index (RRI) trends in your local market to determine whether rate increases are driven by genuine pricing power or simply by new, high-end inventory.
• Monitor local regulatory changes closely, as supply contractions (such as Spain's 14% decline or Greece's regulatory supply contraction) can concentrate demand among remaining hosts and support higher pricing.
• Align property acquisition and marketing strategies with the outperforming mid-sized (two- and three-bedroom) and upper-tier (Midscale, Upscale, Luxury) segments, which led occupancy growth.
• Anticipate major localized events months in advance by setting minimum length-of-stay requirements and maintaining premium pricing rather than discounting early.