Here’s the Mexican Vacation Rental Market Report for 2024 and Beyond
Mexico Vacation Rentals are one of the fastest-growing segments of the vacation rental market.
The growth in Mexico can be attributed to increased tourism and investment from international investors, who have been purchasing homes for rent in major cities like Cancun, Tulum, and Playa del Carmen.
Mexico Vacation Rental Market Overview (2024)
Mexico’s vacation rental market revenue is expected to reach $1.57 billion by 2023, and grow at a CAGR of 30.6%.
The Mexico vacation rental market has been growing steadily over the past few years with an upward trend from 2015 to 2017. The market size was worth $0.59 billion in 2015 and it grew at a CAGR of 27% during the forecast period 2016-2023 to reach $2 billion in 2023.
There are several factors driving this growth including the increasing number of travelers visiting Mexico for leisure purposes; the increasing popularity of short-term rentals; rising disposable income among the middle-class population; the growing tourism industry; tourism policy initiatives such as visa relaxations that have improved traveler satisfaction levels.
The vacation rental market in Mexico is expected to grow to $2B by 2026, up from $1.06B in 2017.
If you’ve never been to Mexico, it’s probably not surprising that you’re not too familiar with vacation rentals.
But if you’ve been there and enjoyed yourself, it might be time to consider getting into the business. Mexico is a popular destination for tourists, who come for the beaches, culture, and amazing food.
Tourists are also drawn by the opportunity to experience the Mayan ruins at Chichen Itza in Yucatan Peninsula or explore ancient cities like Tulum.
Whatever draws them there, they’ll need somewhere to stay while they’re there—and that’s where vacation rental properties can help!
The vacation rental market in Mexico is expected to grow from $1.06 billion in 2017 (with a Compound Annual Growth Rate (CAGR) of 7%) through 2023 ($2 billion), according to research firm Phocuswright Inc., which predicts this growth will be driven primarily by millennials booking their own trips instead of going through travel agencies or tour companies
In the Vacation Rentals segment, 61% of total revenue will be generated through online sales by 2026.
According to the report, 61% of total revenue will be generated through online sales by 2026. In 2022, 46% of total revenue was generated offline and 52% online.
The reason for this growth is attributed to the rise in technology-savvy millennials and Gen Zers. These groups are less likely to rent a property from a physical location due to their preference for online shopping and mobility.
Airbnb takes the brand preference with 90% of the bookings in Mexico
Airbnb is the most popular vacation rental platform in Mexico, with 90% of all bookings on the platform. It offers a wide range of options for every type of traveler and it’s easy to use.
However, Airbnb does not have properties in every city in Mexico. If you are looking for a specific location that Airbnb doesn’t cover, then you can use Booking or Expedia to find other options on those sites.
50.1% of users are high-income earners
If you’re looking for a vacation rental in the Mexican city of Tulum, you may want to consider renting a luxury property.
The majority of people who use vacation rentals in Cancun are high-income earners. According to our data, 50.1% of users are high-income earners, while medium-income is at 31.0% and low income sits at 18.9%.
A typical example of a high-income earner would be an executive or manager working in IT, sales, or marketing, with a salary of over $100k per year.
User demographics for Mexico Vacation Rentals
Mexico vacation rentals are becoming more popular with millennials. Millennials, who were born between 1980 and 2000, make up more than one-quarter of all Americans and are the largest living generation in the United States.
With this in mind, it makes sense that they would be the largest demographic using Mexico resort properties.
- 18-24 years old at 20.8%
- 35- 44 years old at 37%
- 45 to 54 years old at 24.6%
- 55+ years old at 17.7%
Conclusion
The Mexico vacation rental market is expected to grow at a CAGR of 8.3% from 2016-2023. The rising demand for Mexico vacation rentals is driven by the increasing middle class and their preference for an affordable travel option.
Credit Source: Statista.com
What to Expect from your first month of owning an Airbnb in Tulum Mexico
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