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US: Monthly rentals are emerging as a core pillar of the US rental housing market, outpacing the growth of short-term rentals and reshaping investor strategies, according to a new joint report from Furnished Finder and AirDNA.
The report analyses booking activity for short-term stays of under 28 days and monthly stays of 28 days or longer across major booking platforms, covering homes, apartments and condominiums nationwide. It finds that demand for monthly rentals has expanded rapidly since 2019, driven by structural housing pressures, regulatory changes and shifting workforce mobility.
Using AirDNA data, nights booked for stays of 28 days or more rose by 136% between 2019 and the end of 2025, increasing from around 20 million to 46 million nights. Over the same period, short-term rental nights grew by 52%. Monthly rentals now represent 19% of total rental demand, with year-on-year growth of 8%, more than double the 3% growth recorded for short-term rentals.
Furnished Finder’s own platform data shows a sharp rise in both supply and demand. Its inventory has expanded from approximately 20,000 listings before the pandemic to more than 300,000 today. Annual booking enquiries tripled between 2022 and 2025, while the number of unique travellers more than doubled, signalling broader adoption of furnished monthly housing.
The report attributes sustained growth to macroeconomic factors rather than temporary pandemic effects. Housing shortages and affordability constraints continue to push renters towards flexible options, with renter households growing by 15% between 2010 and 2023, compared with 10% growth in homeowner households. In 2024, there were 12 million rental moves versus 4.2 million home sales, highlighting that mobility is increasingly concentrated in the rental sector.
Urban markets are leading the shift. Monthly rentals in large cities have grown at an estimated compound annual growth rate of 16% from 2023 to late 2025. New York and Los Angeles illustrate differing dynamics. In New York, stricter enforcement of short-term rental regulations coincided with a rapid reallocation towards longer stays, with monthly rentals rising from around one-third of total demand in 2022 to roughly 70% by 2024. In Los Angeles, where enforcement outcomes have been more varied, monthly rentals increased more gradually, from the mid-30% range to around 40%, reflecting organic demand linked to workforce mobility and housing needs.
Growth is not confined to major metropolitan areas. The report highlights strong demand in markets aligned with employment corridors, hospital systems, universities and affordability zones, rather than tourism-heavy destinations. Furnished Finder notes that some of the fastest-growing signals are appearing in smaller markets, where demand growth is outpacing supply, pointing to unmet housing needs and potential opportunities for investors.
Monthly renters are shown to be a distinct segment from leisure-focused short-term rental guests. Tenants prioritise livability, reliability and flexibility, with a diverse mix including business travellers (30%), healthcare professionals (25%), relocating families and insurance placements (20%), academics (10%), digital nomads (5%) and other renter types (10%). Booking behaviour reflects this difference, with more than 40% of tenants securing accommodation within two weeks of move-in, indicating on-demand housing expectations.
The rental process itself sits between traditional long-term leasing and short-term stays. Direct communication with landlords, lease agreements, monthly payments and the option to extend stays are common, underscoring the hybrid nature of the segment.
Performance data suggests that successful monthly rentals tend to be smaller, affordable and functional. Affordability remains a key driver, with 55% of renters searching for properties priced at $2,500 per month or less, and 85% of listing page views focused on homes with fewer than three bedrooms.
Listings that perform best typically offer high-speed Wi-Fi, in-unit laundry, full kitchens, dedicated workspaces and pet-friendly policies, reinforcing the importance of functionality in sustaining occupancy and pricing power.
The report also points to lower barriers to entry for operators compared with short-term rentals. Monthly rentals can be operated across a wide range of property types, including single-family homes, accessory dwelling units, garage apartments and spare bedrooms. Furnished Finder reports that 63% of operators are female, with the largest age group aged 55 and over. Initial set-up costs are typically lower, with furnishing averaging around $7 per square foot, and turnover costs estimated to be 60–70% lower than for short-term rentals.
While many hosts operate a single property, the report finds that hybrid strategies blending short-term and monthly stays can help mitigate seasonality. According to Furnished Finder, 83% of hosts are single-property owners, while AirDNA data shows that 19% of hosts operate at a professional level, suggesting the segment remains largely fragmented but continues to attract a broad base of individual investors.
Here directly from Jeff Hurst, CEO of Furnished Finder and Jamie Lane, Chief Economist at AirDNA on the topic in this exclusive video interview:
