North Macedonia has been named the cheapest country in Europe for short-term holiday rentals in 2026, according to new data released by AirDNA, while Monaco remains the continent’s most expensive market.
The report analysed average daily rental rates, occupancy levels, booking lead times and traveller stay patterns across Europe’s short-term rental sector. It found that travellers can still find accommodation for less than 40 euro per night in several Balkan and eastern European destinations, while premium markets now regularly exceed 200 euro per night.
AirDNA, which tracks millions of listings across platforms including Airbnb and Vrbo, said the findings highlight the growing divide between Europe’s low-cost and luxury travel markets.
North Macedonia recorded the lowest average daily rental rate in Europe at 39.81 euro per night. Travellers typically book around 13 days before arrival and stay for an average of 4.4 nights. The country’s best-known destinations include Skopje and Lake Ohrid, which continues to attract visitors seeking lower-cost alternatives to western European lake resorts.
Kosovo ranked second cheapest, with an average nightly rate of 41.63 euro. The country also recorded Europe’s shortest booking window, with travellers reserving accommodation only seven days before arrival on average. Visitors stay for around 4.9 nights and increasingly combine the destination with broader Balkan travel itineraries.
Moldova came third with an average daily rate of 45.49 euro. Chișinău remains the country’s primary tourism hub, while occupancy levels were among the highest within Europe’s lower-cost markets, suggesting rising international demand.
Serbia ranked fourth at 51.17 euro per night. While Belgrade remains the main tourism gateway, AirDNA said travellers are increasingly exploring destinations such as Novi Sad, the Šumadija wine region and the landscapes surrounding the Drina River.
Bosnia and Herzegovina completed the five cheapest markets with an average rate of 56.33 euro. Sarajevo and Mostar continue to attract the majority of visitors, while rural tourism in Herzegovina is also growing.
The report showed that Europe’s most affordable rental markets remain heavily concentrated in the Balkans and eastern Europe, where prices continue to sit well below the continental average.
At the opposite end of the market, Monaco retained its position as Europe’s most expensive short-term rental destination, with average nightly rates reaching approximately 417 euro. Demand remains especially strong during major events such as the Monaco Grand Prix, with travellers booking stays around 63 days in advance.
Iceland ranked second most expensive with average rates of 209.90 euro per night. Strong demand for Reykjavik and the country’s natural attractions continues to drive pricing, while travellers book further ahead there than anywhere else in Europe, averaging 73 days before arrival.
Andorra placed third among Europe’s most expensive rental markets at 188.57 euro per night, supported by strong ski and mountain tourism demand.
Switzerland ranked fourth at 176.99 euro per night, reflecting continued demand for alpine resorts and major cities, while Greece completed the top five most expensive markets with average rates of 171.90 euro.
The findings come as short-term rentals continue to gain market share across Europe, with many travellers choosing apartments and holiday homes over traditional hotels due to lower costs, larger spaces and greater flexibility.
AirDNA said booking patterns also show travellers increasingly seeking value-driven destinations as accommodation costs become a larger part of overall travel budgets.
