Key Details:
A recent study conducted by RRC Associates and Inntopia closely examined the economic impacts & workforce housing impacts of short-term rentalss in Pitkin County (CO), Summit County (CO), and Teton County, (WY).
These counties have very popular vacation destinations like: Aspen (CO), Breckenridge (CO), and Jackson (WY), among others.
Workforce Housing Impact of STRs:
- The study found that STRs were not responsible for the increased housing prices from 2019 to 2023.
- During this period, housing prices rose sharply in the three counties (ranging from +45% to +81% growth), while the number of STRs have remained stable relative to the pre-Covid levels
- The rapid growth of housing prices is more attributable to multiple macro-factors: a sharp decline in new home construction, a strong national economy, record low mortgage rates, and massive shifts in how/where we work and live post-pandemic
- The number of vacation homes (including STRs) as a percentage of total housing units in each county has remained stable for over 30 years (1990- 2020).
- In all three counties, the number of STRs that would be attainable for workers earning median wages is negligible as the vast majority are valued at $700k+.
- If STRs are banned, the housing supply would likely not increase significantly.
- Most owners value using their property as a second home for personal use, and say they would keep them and let them sit vacant
Economic Impact of STRs:
- In 2022, STRs generated $1.7 billion in visitor spending, supporting over 7,600 jobs and generating $103 million in local and state tax revenue.
- STR guests spent an average of $607 per stay on lodging and at local businesses (restaurants, shops, and activities).
- By offering flexible accommodations for various group sizes and budgets, STRs attract visitors who might not otherwise visit these areas.
- STRs generate more economic activity and funding for affordable housing than traditional second homes.
Our Take:
Local governments across the U.S. often cite rising home prices as justification for stricter STR regulations (looking at you, New York). While this study focuses on a few counties, its findings apply broadly.
STR’s are not what's driving up housing prices.
The past 10–15 years have seen multiple macro forces shape the housing market: a sharp decline in new home construction since 2008, a strong economy, historically low mortgage rates, and post-pandemic shifts in how and where people live and work.
If local governments want to increase affordable housing, the solution is clear—build more units specifically designed for that purpose.
As more data-driven studies emerge, the evidence continues to show that STRs are a major force in supporting vibrant local economies.
Sources: KUNC, Economic & Workforce Housing Imacts of Short-Term Rentals
