Rentals

Short-term rentals don’t have big impact on rents, experts say

A Zillow survey of experts indicates that although there's some effect, it's not dramatic
  • Half of the expert respondents to Zillow's survey said that short-term rentals' impact is "meaningful, but small," with a smaller share (40 percent) saying their impact isn't meaningful.
  • Only 5 percent diagnosed a "meaningful and large" impact.

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What happens to rents if short-term rentals take a bite out of long-term inventory? The question is being debated by local governments and stakeholders across the country, helping to inform new regulations, such as those recently passed by New Orleans. The answer might vary largely by city, but short-term rentals don't have a substantial impact on housing affordability, according an overwhelming majority of experts surveyed by Zillow. That's not to say that most of those experts wrote off any impact whatsoever. In fact, half of respondents to the survey said that short-term rentals' impact is "meaningful, but small," with a smaller share -- 40 percent -- saying their impact isn't meaningful. But only 5 percent diagnosed a "meaningful and large" impact. One expert said that the impact "may be felt more acutely in very tight, supply-constrained markets like those in California and other booming coastal states, but that those effects likely wouldn’t spill over in...