Prior to the COVID-19 crisis, global mobility was at its peak, driven by the increasing influx of international students, and by mobile and online technologies enabling people to work remotely and collaborate across multiple countries and timezones.
For most of these globally mobile students, workers, retired or other expatriates, mid term rental markets present an advantage vs. traditional long term rentals: Online book-ability, reduced language barrier, simplified contracts, furnished and equipped properties.
The pandemic put a sudden halt to global mobility and for that reason temporarily shrunk the total addressable market for mid term rentals.
We believe however that this halt is temporary and that in a post pandemic world, mid term rental players will see their total addressable market explode, driven by the following factors:
- Increased work mobility in a world where more and more companies are opting for full remote work.
- Increasing demand for flexible housing contract, allowing workers who may fear new lock down periods to relocate should the situation necessitate it.
- Shift of demand from short-term rentals to mid term rentals driven by a sustained willingness to travel combined to new logistical hassles for travelers to move to their destinations.
In this context, we forecast that dedicated mid term platforms and marketplaces will benefit from a growth of the category in the coming years.
As part of our mission to cover short to mid term rentals globally, Transparent has partnered with leading rental platforms Nestpick, HousingAnywhere and Spotahome to produce this first report on mid term rentals, aiming at providing additional context around the growth and future of the mid term rental market.
A few take aways:
Online mid term rental supply has grown exponentially over the past years:
While lead time has increased due to Covid-19:
Length of stay has also gone up from 4 to 5 months globally:
And site visits on major mid-term rental platforms have resisted better than short-term rental platforms:
The mid to long term rental arbitrage is significant in most of the markets that we have analysed:
Find more in the full report in the button below:
For more information on how Transparent’s data insights can help you, visit our website seetransparent.com or book a personal demo: