Airbnb Inc. is seeking to increase its number of short-stay listings in Japan, its fastest-growing market.

The number of guests for its home rental service has surged 529 percent this year from a year ago, while listings are up 373 percent to 21,000. That has created a shortage of supply, Yasuyuki Tanabe, the country manager of Airbnb Japan, said in an interview. On top of regulatory issues Airbnb faces in the country, having enough supply is also a challenge, he said.

"We call it supply constraints," Tanabe said. "We have many more people who want to come to Japan compared to the number of listings."