Rental market growth phase globally, fueled by urbanization, high home prices, lifestyle shifts, and demand for flexibility—even as rent growth cools and vacancies edge up in some regions. Forecasts show the real estate rental market more than doubling by the mid‑2030s, with housing rentals, multifamily, and platform‑based rentals leading expansion.
Rental Market Growth Size and Outlook
The global real estate rental market is set for strong long‑term growth.
Research and Markets values the real estate rental market at around USD 2.5 trillion in 2025, with projections reaching USD 5.2 trillion by 2034, an 8.4% CAGR from 2025 to 2034. Their report, Real Estate Rental Market Outlook 2025–2034, notes that both residential and commercial rentals benefit from demand for flexibility and hybrid‑work‑oriented space.
DataIntelo estimates the global housing rental service market at about USD 1.56 trillion in 2023, forecast to grow to USD 2.56 trillion by 2032 at a 5.6% CAGR. The Housing Rental Service Market Report attributes this to urbanization, rising household formation, and a structural shift toward renting instead of owning.
JLL’s Global Real Estate Perspective, November 2025 highlights the living sector (multifamily, student housing, single‑family rentals) as a key growth area, with investment volumes returning to pre‑pandemic norms and the US leading the rebound.
A LinkedIn analysis, Market Demand and Revenue for International Housing Rental Platforms, projects revenues for cross‑border housing rental platforms to grow at about 5.9% annually from 2025 to 2032, driven by students, expats, and digital nomads.
Demand Drivers Behind Rental Market Growth
Several structural factors underpin rental market growth worldwide.
- Affordability pressures and high home prices
Many households—especially younger adults—are priced out of homeownership, making renting the default. Research and Markets expects continued demand for rentals in urban and suburban markets as ownership costs stay elevated. - Urbanization and demographic change
Ongoing migration to cities, smaller household sizes, and delayed family formation all boost urban rental demand. - Lifestyle shifts and flexibility
Hybrid work and increased mobility have increased demand for flexible leases, furnished apartments, co‑living, and short‑term rentals. - Platformization and short‑term rentals
The rise of Airbnb and similar platforms expands the short‑term rental segment and introduces new revenue models, which Research and Markets’ outlook identifies as a key trend.
Lodgerin’s article “Rental market outlook: where is demand growing the fastest?” points to strong demand in university cities, tech hubs, and tourist destinations, where limited stock and high inflows push rental demand above supply.
Vacancy Rates and Rent Growth (U.S. Snapshot)
In the US, the rental market has shifted from ultra‑tight conditions toward a more balanced state.
Realtor.com reports that the national rental vacancy rate reached 7.2% in Q4 2025, up from 7.1% in Q3 2025 and 6.9% in Q4 2024, while the homeownership rate ticked slightly higher. See “Rental Vacancies Rise as Homeownership Rate Ticks Slightly Higher”.
DoorLoop’s dashboard, “Rental Vacancy Rates – Current Data & Historical Trends (1965–2026)”, notes:
- Q2 2025 rental vacancy stood at 7.0%, up from 6.6% in Q2 2024.
- Historically, 5–8% vacancy indicates a balanced market—below 5% usually drives rapid rent growth, while above 8% signals oversupply or weaker demand.
- State‑level variation is large: in 2024, South Carolina had the highest rental vacancy rate at 10.6%, while Rhode Island had the lowest at 2.6%, and luxury or new builds often see higher vacancy.
CBRE’s U.S. Real Estate Market Outlook 2026 – Multifamily expects:
- Owners to prioritize occupancy over rent growth, often using concessions.
- Muted rent growth in 2026 due to elevated new supply, especially in the Southeast, South Central, and Mountain regions.
- Longer‑term outperformance in those high‑growth regions once new supply is absorbed.
Regional and Segment Trends
Global Living Sector
JLL’s global perspective emphasizes that the “living” segment—multifamily, student housing, co‑living, and single‑family rentals—is a focus for institutional capital. The report notes:
- Investment volumes in living assets are returning to or exceeding pre‑COVID levels, with the US and Europe leading.
- Demographic tailwinds (aging populations, smaller households, urbanization) support durable rental demand.
Aberdeen’s Global Real Estate Market Outlook Q2 2025 echoes this, citing a gradual recovery in real estate and pointing out that rental assets are attractive for their income stability.
Housing Rental and Platforms
DataIntelo’s Housing Rental Service Market Report highlights that:
- Renters value flexibility and lower upfront costs versus buying.
- Both urban cores and suburban areas are seeing strong rental demand, especially where hybrid work makes longer commutes tolerable.
The LinkedIn piece on International Housing Rental Platforms underscores rising demand from international students, expats, and digital nomads for cross‑border rental solutions, boosting platform revenue growth.
Example: Philippines / Metro Manila
Global Property Guide’s “Philippines’s Residential Property Market Analysis 2026” reports that:
- Metro Manila condo vacancy reached 25% in Q3 2025 and is expected to hit 26.5% by end‑2025, the highest on record, due to large condo supply and slower post‑COVID absorption.
- This overhang is creating a tenant‑friendly rental market, with lower rents and more incentives.
For a rental‑market growth analysis, this shows how supply surges can temporarily push up vacancy and cap rent growth even in fundamentally strong demand markets.
Multifamily and Single‑Family Rentals in the U.S.
The multifamily and single‑family rental (SFR) segments illustrate changing renter preferences.
CBRE’s multifamily outlook expects:
- Stable to improving occupancy as new supply is gradually absorbed.
- Subdued rent growth in the near term, with a stronger outlook once construction pipelines slow.
Arbor’s “U.S. Multifamily Market Snapshot — February 2026” notes that households renting single‑family homes increased 1.7% in 2025, reaching a seven‑year high, as renters sought more space without committing to ownership.
Marcus & Millichap’s 2026 U.S. Multifamily Investment Forecast characterizes the demand outlook as “encouraging,” with:
- Stabilizing vacancies.
- A slowdown in new development.
- The groundwork laid for healthier rent growth once current supply is digested.
Overall Rental Market Growth Analysis
Putting the data together, rental market growth over the next decade is characterized by:
- Strong long‑run expansion – The global real estate rental market is forecast to grow from about USD 2.5 trillion in 2025 to USD 5.2 trillion by 2034. Housing rentals alone are expected to hit USD 2.56 trillion by 2032.
- Structural shift from owning to renting – High home prices, tighter credit, and flexible‑work lifestyles are pushing more households to rent longer.
- Near‑term normalization – After years of rapid rent increases, vacancies are rising and rent growth is moderating in markets like the US, making conditions more balanced.
- Segment and regional nuances – Living assets (multifamily, SFR, co‑living, student housing) and high‑growth metros will likely outperform, while oversupplied condo markets such as Metro Manila face near‑term rental softness.