Short-term rentals in small cities in Oregon: Impacts and regulations

Sadie DiNatale, Rebecca Lewis and Robert Parker

Land Use Policy, 2018, vol. 79, issue C, 407-423

Abstract: Governments across the country struggle to manage the impacts of short-term rentals (STRs), like Airbnbs, and the sharing economy more generally. Existing research is sparse and tends to focus on large cities or metropolitan areas. Focusing on 237 small cities in Oregon, this study relies on descriptive data from Airbnb, AirDNA, Oregon Department of Revenue, and the U.S. Census to examine the prevalence and characteristics of Airbnbs, revenue potential from lodging taxes, and the impact on long-term housing supply. This study also summarizes the findings from a statewide survey of city managers and planners on regulation and perceptions. We find that the prevalence of Airbnbs varies drastically across cities and is highest in tourist areas. Airbnbs are present on over five percent of the housing stock in 16 cities. While hosts generated $82 million in revenue, only 11 cities and four counties charge lodging taxes. In total, 38% of Airbnbs are whole homes that are rented more than 30 days in a year, signaling potential impacts on long-term rental supply. Finally, while cities perceive Airbnb to be an issue, only 35% of survey respondents are currently regulating Airbnbs. We find that cities need to understand prevalence and characteristics of STRs and respond with appropriate regulatory controls. Airbnb provides lodging and tourism where hotels have not been available in some cities, but in other cities, Airbnbs place pressure on tight housing markets and draw complaints from residents.

Keywords: Short term rentals; Housing supply; Housing affordability; Rural housing; Local regulation; Sharing economy (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:79:y:2018:i:c:p:407-423

DOI: 10.1016/j.landusepol.2018.08.023

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