European short-term rental rates rose 8.2% in July 2026 as occupancy steadied

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 August 14, 2026, AirDNA reported that average daily rates for European short-term rentals rose 8.2% year over year in July 2026 to €159.2, driving revenue growth even as occupancy levels stabilized across the continent. According to the report, revenue per available rental night increased 7.7% to €110.1, while the average occupancy rate fell 0.3 percentage points to 69.2%.

The performance highlighted a market where pricing gains, rather than occupancy growth, did the heavy lifting. Available listings across Europe reached 4.18 million, representing a 1.9% increase compared to July 2025, while demand nights edged 0.8% higher to 61.68 million.

What the data shows

In July 2026, the European short-term rental sector experienced a period of stabilization, characterized by closely matched growth in supply and demand. AirDNA reported that available listings increased 1.9% year over year to 4.18 million, while demand nights grew 0.8% to 61.68 million. This narrow gap between supply expansion and demand growth kept the average occupancy rate nearly level, falling slightly by 0.3 percentage points to 69.2% from the 69.5% recorded in July 2025.

Despite the flat occupancy, average daily rates rose 8.2% to €159.2, up from €147.2 in July 2025. This rate discipline allowed hosts to achieve a 7.7% increase in revenue per available rental night, which reached €110.1 compared to €102.3 in July 2025.

However, a divergence emerged between realized stays and new booking activity. While travelers consumed 61,684,501 demand nights in July 2026, the number of nights booked during the month for current and future stays fell 3.9% to 42,019,081, down from 43,725,725 in July 2025. AirDNA noted that this was a decline compared to July 2024, when bookings reached 43,509,674. In contrast, demand nights remained higher than in any previous July, rising 8.6% compared to July 2024, when demand nights were 56,779,957, and 15.9% compared to July 2023, when demand nights were 53,229,733.

How it was measured

The data tracks performance metrics across major short-term rental platforms, including Airbnb and Vrbo, for the period of July 2026. To analyze pricing trends without the distorting effects of new properties entering or old properties leaving the market, AirDNA utilized its Repeat Rent Index. This index measures pricing changes among identical listings over time. The report also incorporated macroeconomic data from the European Central Bank regarding interest rates and inflation, alongside sentiment indexes tracking economic activity and employment expectations across the Euro Area. AirDNA did not publish the exact proprietary algorithms used to clean the raw platform data or the specific filtering criteria for active listings.

Supply trends by property size

The modest 1.9% increase in available listings across Europe masked a significant structural shift in the types of properties entering the market. AirDNA reported that supply growth was heavily concentrated in larger homes, with the rate of expansion rising steadily alongside bedroom counts.

Specifically, listings for homes with six or more bedrooms rose 5.1% year over year, while five-bedroom listings grew 4.5%, four-bedroom listings rose 3.7%, and three-bedroom listings increased 2.6%. In contrast, smaller properties saw much slower growth. Studios and one-bedroom listings grew 1.4% year over year, while two-bedroom listings rose 1.3%. Because studios, one-bedroom, and two-bedroom properties represented 76% of all European short-term rental supply, their slow growth held down the aggregate continental average.

This distribution represents a major change from July 2025, when supply growth was evenly spread between 1.9% and 3.9% across all bedroom counts. AirDNA’s demand data showed that operators were responding to shifting traveler habits, as demand nights for homes with six or more bedrooms rose 4.3% and five-bedroom demand rose 3.8%, while demand for two-bedroom properties fell 0.6%.

Geographic shifts and regulatory impacts

The aggregate European supply growth of 1.9% was also heavily influenced by regulatory actions in Spain. AirDNA reported that available listings in Spain fell 12.48% year over year to 365 Thousand, representing a loss of approximately 52,000 listings. This contraction, driven by regulatory delisting momentum that began in mid-2025, exceeded the total supply gains recorded in France over the same period.

Excluding Spain, the remaining top four European markets outpaced the continental average with a combined supply growth of 3.6%. France led the expansion with listings rising 3.96% to reach 1.11 million, followed by Italy, which grew 3.59% to 563 Thousand listings. The United Kingdom saw supply rise 3.44% to 416 Thousand listings, while Germany recorded a 2.99% increase to 367 Thousand listings.

In the mid-sized tier of nations with over 80,000 listings, supply grew by a muted 1.5% due to corrections in Mediterranean markets. Croatia and Greece recorded listing declines of 2.14% and 1.99% respectively, ending the month with 179 Thousand and 162 Thousand listings. Conversely, Poland saw supply rise 7.67% to 91 Thousand listings, and Denmark grew 6.87% to 83 Thousand listings.

The fastest-growing region in Europe was the Nordic market. Finland led the continent with supply growth of 11.09%, reaching 30 Thousand listings. Sweden grew 9.33% to 69 Thousand listings, while Norway rose 7.88% to 77 Thousand listings.

Demand patterns and booking timing

The divergence between the 0.8% increase in demand nights and the 3.9% decline in nights booked suggested a shift in booking behavior rather than a drop in overall travel interest. AirDNA reported that from January through July 2026, European demand nights totaled 257.4 million, while nights booked reached 293.1 million, representing declines of 3.0% and 3.6% respectively compared to the same period in 2025.

However, July accounted for 24.0% of the total demand nights consumed between January and July 2026. This was the highest July share recorded in the data series, up 0.9 percentage points from 2025 and ahead of the 23.5% recorded in 2022 and 2024. This concentration of travel into the peak month meant that a larger share of stays was booked earlier in the year, leaving fewer bookings to be made during July itself.

This trend was supported by a slight increase in the median lead time for July stays, which rose to 39 days in 2026 from 38 days in 2025. At the market level, demand nights rose in 14 of the top 20 European markets, but nights booked fell in almost every cluster. For example, Sweden recorded an 11.9% increase in demand nights but a 0.9% decline in nights booked. Norway saw demand nights rise 8.0% while nights booked fell 6.1%.

Macroeconomic factors and shoulder season pacing

The broader economic climate in Europe presented mixed signals for the short-term rental market. The European Central Bank held its three key interest rates steady at its July 23 meeting, following a 25 basis point increase on June 17, as it pursued its medium-term inflation target of 2%. Euro Area inflation rose slightly to 2.9% in July, up from 2.8% in June but below the May high of 3.2%.

Despite higher travel costs and inflation, forward-looking bookings as of August 2026 indicated strong interest in the shoulder season. AirDNA reported that September demand nights were pacing 6.9% ahead of 2025, while October paced 6.0% ahead. In contrast, August demand nights paced just 1.6% higher.

Travelers booking these shoulder-season stays were also paying premium rates. September’s on-the-books average daily rate stood at €152, which was higher than the €150 realized in June 2026. Furthermore, occupancy gains for September were strongest in higher price tiers, climbing 2.3 percentage points for luxury listings compared to 1.1 percentage points for budget properties. This indicated that travelers were shifting to the edges of the high season to avoid crowds and high temperatures without demanding deep discounts.

What to take from it

The performance of the European short-term rental market in July 2026 offers several critical lessons for hosts, property managers, and investors looking to optimize their portfolios.

• Monitor local regulatory environments: The dramatic decline in Spanish listings demonstrates how quickly regulatory changes can reshape a market, making it essential to diversify geographic risk.
• Focus on property size and configuration: With supply and demand growth concentrated in larger homes, investors should consider properties with four or more bedrooms to capture the growing group travel segment.
• Capitalize on shoulder-season demand: The strong forward pacing and high average daily rates for September and October suggest that marketing and pricing strategies should be adjusted to target high-value shoulder-season travelers.
• Track booking lead times: As travelers commit to stays earlier in the year, hosts must adjust their booking windows and pricing algorithms further in advance to avoid missing out on early-season demand.