What does the short-term rental market look like in China? 1. High demand in the first and second tier cities In addition to attracting international tourists, vibrant economies in first-tier cities like Beijing, Shanghai and Shenzhen attract many domestic visitors. These visitors from throughout China seek better jobs, better education, and better medical care. While they stay in these top-tier cities, they need short and medium-term housing. 2. Good demand in lower tier touristy cities A good example would be Sanya (China’s Hawaii) or Chengdu (where the pandas are). The market is heating up because of its well-known landmarks and a lower cost of living makes it more affordable when traveling. 3. The market in the rest China, the third-tier cities and the rural areas without any tourism, is a bit bleak.