Skip to main content

Do Short-Term Rental Services Really Disrupt the Housing Market?

Dec 06, 2016
Florida and California are home to renters that carry the highest cost burdens on their housing expenses, according to new data released by Abodo

Concerns around services such as Airbnb and HomeAway may be exaggerated.

The controversy surrounding the impact of short-term home rental services such as Airbnb and HomeAway are overblown, according to a new data analysis released by Zillow.
 
In the latest Zillow Home Price Expectations Survey of 111 housing-focused economists, half of the experts surveyed said the impact of short-term rental operations on housing affordability was “meaningful, but small” impace on the wider housing picture, with 40 percent insisting the impact was not meaningful and five percent stating the impact was large. In a separate Zillow survey, only seven percent of homeowners were either renting out or planning to rent out their primary residence for short-term periods.
 
"Cities across the country are grappling with housing affordability issues, especially in places with rapidly rising rents and home values," said Zillow Chief Economist Svenja Gudell. "In some hot West Coast markets, it's not uncommon for renters to spend 40 percent or more of their income on a monthly rental payment, when historically that number was much lower. Inventory plays a large role in this affordability crisis; there simply aren't enough rentals on the market to keep prices low. Clearly experts aren't convinced that short-term rentals are the cause of our problem."
About the author
Published
Dec 06, 2016
Mortgage Applications Drop As Rates Reach Three-Month High Point

Purchase apps still 13% higher than a year ago, despite latest weekly slide

May 21, 2025
Moody’s Downgrades Fannie And Freddie Following U.S. Sovereign Credit Cut

Outlooks for both GSEs revised from negative to stable

May 20, 2025
A&D Mortgage Completes $427M Non-QM Securitization

Company says transaction highlights expansion in the Non-QM market, notes it expects to price more deals this year

May 19, 2025
These U.S. Metros Could Be First-Time Buyers' Best Chance To Close A Loan

Even among top 10 most affordable areas, home sale prices more than doubled in four, nearly doubled in another three since 2015

May 15, 2025
As HELOC Opportunities Grow, Angel Oak Completes Its First HELOC Securitization

$191M inaugural offering sees strong investor interest; company says it plans to package more HELOCs alongside Non-QM securitizations

May 15, 2025
DOJ Opens Criminal Investigation Into NY AG Letitia James Over Mortgage Fraud Claims

Investigation follows April referral by FHFA Director Bill Pulte; potential charges include wire, mail, and bank fraud

May 09, 2025