Italy Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth

Written by: Jae Seok An, Founder, Airbtics
Published: January 22, 2026

Italy Short-Term Rental Market Overview 2025

Average Occupancy Rate i
63.82%
Average Annual Revenue i
€31,065
Average Daily Rate (ADR) i
€130
YoY Supply Growth i
23.56%
YoY Revenue Change i
21.63%
Markets Analyzed
94

Number of Airbnb Listings Changes in Italy 2025

Which markets are experiencing rapid saturation?

A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in Italy was 23.56% in 2025, indicating the overall growth trajectory of the market.

Markets with Largest Absolute Supply Increases in Italy

In absolute terms, Rome experienced the largest increase with +5,764 new listings added in 2025. This was followed by Milano (+3,568 listings) and Florence (+1,864 listings).

Markets with Fastest Relative Growth in Italy

In relative terms, San Michele Al Tagliamento experienced the most significant growth, with 207.14% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Lido Di Jesolo (+60.95%) and Costa Rei (+40.60%).

Short-Term Rental Revenue Trend in Italy 2025, and Future Outlook for 2026

Does increased supply necessarily indicate market saturation?

To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The Italy average YoY change in revenue was 21.63% in 2025, representing an increase from $27,464 in 2024 to €31,065 in 2025.

Top Markets Revenue Performance

Rome

€43,148 → €41,116 (-4.71% YoY)
🏰
Best Property Type Large (4+BD) • Midscale ($$)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 31.0%
💰
Average Daily Rate €144
📊
Occupancy Rate 77.0%
📅
Seasonality High seasonality

Milano

€36,142 → €35,169 (-2.69% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin France
✈️
International Guests (vs Domestic) 80.0%
💰
Average Daily Rate €129
📊
Occupancy Rate 73.0%
📅
Seasonality High seasonality

Florence

€41,610 → €40,773 (-2.01% YoY)
🏠
Best Property Type Small (Studio - 1BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 67.0%
💰
Average Daily Rate €148
📊
Occupancy Rate 74.0%
📅
Seasonality High seasonality

For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.

Easiest Markets for Hosts in Italy 2025

Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.

Highest Occupancy Rate Markets in Italy 2025

Positano recorded a year-round occupancy rate of 80.00%, which is among the highest in Italy. This was followed by Sorrento (78.00%) and Rome (77.00%).

Highest Booking Volume Market in Italy 2025

Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in Italy is Rome, with approximately 8,137,240 nights booked in 2025.

Regulatory Landscape

We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.

In Italy, 94 out of 94 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.

Which Italy Markets Are Growing Healthily vs Overheating?

Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against Italy's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.

Benchmark: Markets are categorized relative to Italy's national averages (Supply: 23.6%, Revenue: 21.6%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • Lido Di Jesolo Supply: +61.0% | Revenue: +54.4%
  • Gallipoli Supply: +30.9% | Revenue: +53.3%
  • Porto Cesareo Supply: +34.3% | Revenue: +53.1%
  • Orosei Supply: +35.7% | Revenue: +51.9%
  • Tempio Pausania Supply: +37.8% | Revenue: +47.3%
  • +16 more markets
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • San Michele Al Tagliamento Supply: +207.1% | Revenue: -8.5%
  • Costa Rei Supply: +40.6% | Revenue: +7.7%
  • Livigno Supply: +35.3% | Revenue: +21.0%
  • Bari Supply: +27.5% | Revenue: +11.4%
  • Fiumicino Supply: +26.0% | Revenue: -3.6%
  • +6 more markets
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Lipari Supply: +14.4% | Revenue: +52.3%
  • Marciana Supply: +23.5% | Revenue: +48.3%
  • Arzachena Supply: +21.1% | Revenue: +46.5%
  • Nardo Supply: +21.5% | Revenue: +40.1%
  • Forio Supply: +17.6% | Revenue: +35.1%
  • +20 more markets
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Bologna Supply: +10.8% | Revenue: -8.4%
  • Venice Supply: +15.4% | Revenue: -4.9%
  • Verona Supply: +22.9% | Revenue: -3.0%
  • Florence Supply: +20.0% | Revenue: -2.0%
  • Positano Supply: +16.3% | Revenue: -0.5%
  • +32 more markets

For the latest updates of the market data in Italy, check out our Best Airbnb Markets in Italy.

Data methodology

All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.

Source: Airbtics
Learn data methodology →

Cite this report

Airbtics (2026). Italy Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-italy

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