European short-term rental occupancy fell to 60.3% in June 2026 as supply outpaced demand

Updated 15 October 2026. After a source check by the standards desk, 1 sentence was removed because no source confirmed its specifics. Corrections log.

On July 14, 2026, AirDNA reported that average occupancy in the European short-term rental market fell to 60.3% in June 2026, representing a decline of 1.6% compared to June 2025. This downward movement occurred as the growth of available listings outpaced traveler demand during the month.

Despite the softer occupancy figures, the broader European short-term rental market showed underlying resilience. Hosts maintained pricing power, pushing average daily rates up by 7.5% to €150.05, while forward-looking booking data indicated that travelers were shifting their trips later into the summer season rather than canceling them.

What the data shows

According to the report published by AirDNA, the European short-term rental market in June 2026 experienced a cooling trend in demand alongside strengthening prices. Available listings across the continent reached 4.07 million, which was an increase of 1.3% compared to the 4.02 million listings available in June 2025. However, demand nights fell by 3.3% year over year, dropping from 47.71 million in June 2025 to 46.13 million in June 2026. This imbalance between supply growth and demand contraction led to the average occupancy rate falling to 60.3%, down from 61.9% in June 2025.

Despite fewer booked nights, hosts successfully raised rates. The average daily rate (ADR) rose 7.5% year over year, climbing from €139.51 in June 2025 to €150.05 in June 2026. This pricing strength supported a 4.8% increase in revenue per available rental night (RevPAR), which rose from €86.37 in June 2025 to €90.52 in June 2026.

AirDNA reported that the softer performance in June 2026 did not signal a broader decline in summer travel. Instead, forward pacing data showed that July bookings were pacing 5.3% ahead of the previous year, August bookings were up 5.4%, and September bookings led the summer season with a 9.6% increase. This indicated that travelers were shifting their departures out of June and into the peak and shoulder months of the third quarter.

How it was measured

The performance metrics were compiled and analyzed by AirDNA, which tracks short-term rental data across major booking platforms. The figures compare the performance of the European short-term rental market in June 2026 against historical data from June 2025, June 2024, and June 2023. To analyze pricing trends among established operators, AirDNA utilized its Repeat Rent Index (RRI), which measures pricing changes specifically among existing hosts and excludes the impact of new listings entering the market.

The report also integrated climate data from Copernicus, the European Union's climate monitoring service, to analyze how summer temperatures influenced travel patterns. Economic indicators, including inflation rates and growth forecasts, were sourced from the European Central Bank (ECB) to contextualize consumer spending behavior.

Supply dynamics and regulatory impacts

The growth of available listings in Europe continued to decelerate in June 2026. The 1.3% year-over-year increase in listings was down from the 2.1% growth rate recorded in May 2026, marking the slowest pace of supply expansion since April 2022. This deceleration brought European supply growth closer to mature markets like the United States, which recorded a 2% supply expansion in June 2026.

A key factor in this slowing growth was a reduction in new inventory. Europe recorded 140,000 new listings in June 2026, representing its lowest volume of new June listings in four years. This compared to 150,000 new listings in June 2025, 178,000 in June 2024, and 182,000 in June 2023. The three-month moving average for new listings also slowed to 7.1%.

Supply trends varied significantly across the continent's top 20 markets. The five largest nations grew by an average of just 0.7% year over year, heavily influenced by a 12.5% drop in available listings in Spain. This contraction in Spain followed regulatory delisting efforts that commenced in the second half of 2025. Excluding Spain, the largest European markets grew steadily: the United Kingdom rose 3.6% to 404,000 listings, Italy increased 3.4% to 556,000 listings, France grew 2.9% to 1.06 million listings, and Germany expanded 2.7% to 363,000 listings.

Among countries with more than 75,000 listings, supply contracted in Croatia by 3.4% to 176,000 listings and in Greece by 2.5% to 156,000 listings. The decline in Greece followed the implementation of regulations in October 2025 that removed lower-quality listings. Conversely, Portugal's supply grew 3.9% to 121,000 listings, Denmark rose 6.2% to 78,000 listings, and Poland led this tier with a 7.2% increase to 87,000 listings.

Mid-sized markets with more than 50,000 listings expanded by 4.6% year over year. This tier was led by Sweden, which grew 8.3% to 65,000 listings, and Norway, which increased 8.0% to 72,000 listings. Switzerland grew 2.8% to 53,000 listings, Austria rose 1.9% to 63,000 listings, and the Netherlands grew 0.8% to 53,000 listings.

In smaller markets with fewer than 50,000 listings, Finland led supply growth with an 11.3% increase to 29,000 listings, followed by the Czech Republic at 8.9% with 26,000 listings, and Ireland at 4.1% with 29,000 listings. In contrast, supply fell in Belgium by 3.3% to 40,000 listings and in Hungary by 2.1% to 22,000 listings.

Demand shifts and the coolcation trend

The 3.3% decline in June demand nights to 46 million nights was a slight improvement over the year-to-date demand decline of 4%. Nights Booked—measuring reservations made during June for current and future stays—declined 1.6% year over year, marking the eleventh consecutive month of contraction.

Despite the overall decline, several northern European countries recorded positive booking activity. Nights Booked rose 10.3% in Finland, 3.7% in the Czech Republic, 3.0% in Denmark, 2.9% in Portugal, and 2.9% in Poland. In contrast, booking activity fell in Spain by 9.4%, Germany by 5.6%, France by 3.2%, and the United Kingdom by 1.0%, while Italy recorded a 4.4% increase in Nights Booked.

This geographic divergence was driven in part by extreme summer heat. Copernicus reported that June was one of the hottest months on record, with Spain and Greece experiencing severe heat waves, while France and the United Kingdom recorded temperatures approximately 3°C warmer than their long-term averages. This weather pattern supported the coolcation trend, where travelers shifted demand toward northern and Nordic destinations.

This shift is reflected in third-quarter demand pacing. Denmark led Q3 pacing with a 30.2% increase, followed by Finland at 21.0%, Sweden at 14.3%, and Poland at 12.2%. Larger northern markets also showed strong pacing, with the United Kingdom up 9.1% and Germany up 1.0%. In southern Europe, Italy paced 10.7% ahead of the previous year, and Greece was up 6.4%, while Spain and Croatia saw pacing declines of 3.7% and 2.8%, respectively.

Travelers also showed a preference for non-city destinations during the hottest peak summer months. Pacing was expected to return to cities in September as temperatures cooled.

Occupancy pressures and pricing power

With supply growing by 1.3% and demand nights falling by 3.3%, occupancy fell across 18 of Europe's top 20 markets. The decline was felt across all price tiers, though luxury properties proved the most resilient. Occupancy for luxury listings slipped 0.9% year over year, compared to a 2.2% drop for economy listings and a 3.1% decline for budget listings. Larger properties with six or more bedrooms saw the sharpest occupancy drop, falling 6.9%, while smaller properties fell 2.3%.

The sharpest occupancy declines occurred in smaller, fast-growing markets where supply expansion outpaced demand. The Czech Republic recorded the largest occupancy drop, falling 5.3 percentage points, followed by Austria at 4.4 percentage points, Portugal at 4.2 percentage points, and Finland at 3.4 percentage points.

Larger markets demonstrated greater stability. Occupancy in the five largest European nations fell by an average of 1.4 percentage points. This compared to a 2.5 percentage point drop in markets with more than 75,000 listings, a 2.2 percentage point drop in the 50,000-to-75,000 listing tier, and a 2.9 percentage point drop in the smallest markets.

Spain was a notable exception among the major markets, posting an occupancy gain of 0.4 percentage points, aided by the 12.5% contraction in available listings. Denmark was the only other top-20 market to see occupancy rise, edging up 1.2% as available listing nights grew more slowly than available listings.

Despite occupancy pressures, hosts maintained pricing power. The 7.5% increase in ADR to €150 outpaced the Repeat Rent Index (RRI), which rose 6.0%. The gap between the two indices indicates a shift in the booked mix toward higher-priced inventory. In Denmark, ADR rose 16.2% while the RRI increased 5.7%. Greece showed a similar trend, with ADR rising 12.2% and the RRI up 7.2%, suggesting that the removal of lower-quality listings under the October 2025 regulations helped lift average market rates.

Conversely, in Finland, ADR fell 1.5% while the RRI rose 8.2%. This divergence occurred as an 11.3% increase in available listings introduced lower-priced supply that pulled down the market average, even as established hosts successfully raised their rates.

Economic factors and consumer spending

The shifting travel patterns occurred against a mixed macroeconomic backdrop in the Euro area. Inflation eased to 2.8% in June 2026, down from 3.2% in May, but remained above the European Central Bank's 2% target. In response, the ECB raised interest rates by 25 basis points on June 17, ending a year of stable rates. Energy prices, pressured by conflict in the Middle East, added to inflationary concerns.

The ECB forecast headline inflation to average 3.0% in 2026 before easing to 2.3% in 2027. Economic growth was projected to improve modestly from 0.8% in 2026 to 1.2% in 2027. While economic sentiment reached its highest level since the Middle East conflict began, hiring expectations fell to their lowest point since November 2020, pointing to a softening labor market.

Despite these economic pressures, travel demand remained intact, with consumers adjusting when and where they traveled rather than canceling trips. This behavior was reflected in Q3 pacing by price tier. In July, luxury properties led pacing with a 1.9 percentage point increase over the prior year, while budget properties lagged. By August, pacing gains became more evenly distributed, with all price tiers pacing between 0.7 and 1.1 percentage points ahead of the previous year. In September, momentum shifted toward the midscale and economy segments, pacing ahead of luxury as price-conscious travelers booked shoulder-season trips.

What the figures did not tell you

While the data from AirDNA provided a detailed overview of supply, demand, and pricing trends, it left several key questions unanswered. The report did not disclose the cancellation rates associated with the forward bookings for July, August, and September, leaving it unclear how many of those reservations would ultimately result in completed stays.

Additionally, the figures did not break down performance by individual booking platform, such as Airbnb, Vrbo, or Booking.com, making it impossible to determine if one platform outperformed the others during this transitional month. The report also lacked localized data on the specific compliance costs incurred by hosts in Spain and Greece following regulatory changes, or the exact temperature thresholds that triggered the coolcation demand shifts in individual microclimates.

What to take from it

For short-term rental operators, property managers, and investors, the June 2026 data highlights several structural changes in the European market that require careful monitoring.

• Compare local supply growth against regional averages to identify if regulatory actions, such as those in Spain and Greece, are artificially depressing supply and creating localized occupancy opportunities.
• Monitor the gap between average daily rates and the Repeat Rent Index in your specific market to understand whether pricing growth is driven by genuine host pricing power or merely shifts in the inventory mix.
• Track climate trends and seasonal demand pacing to adjust marketing and pricing strategies, particularly if your properties are located in traditional southern European hotspots or emerging northern coolcation destinations.
• Evaluate shoulder-season demand pacing, especially in September, to capture price-sensitive and off-peak travelers who are increasingly delaying their trips to avoid high summer costs and extreme heat.