Are Airbnbs ‘morally sketchy’? Studies say no, but not everyone agrees | Opinion

A new study says short-term rentals like Airbnbs are not to blame for the housing crisis — at least not in San Luis Obispo County.

“If there are concerns that STR (short-term rental) activity reduces community housing supplies, there are more direct ways to increase those supplies through zoning reform,” concludes the study by Beacon Economics, which was commissioned by the marketing organization Visit SLO CAL.

It’s a rosy picture for the short-rental industry — but it’s at odds with a growing perception that AirBnbs are pushing out locals who need housing.

“I saw what it was doing to local housing markets, including my home in New York City, where there were more Airbnb listings than available apartments in 2022,” attorney Isabel Heine wrote in an article for “Insider.”

She felt “morally sketchy” about booking Airbnbs, she wrote, and now stays at hotels.

And how’s this for a proactive headline by Substack writer Jared Brock, directed at Airbnb users: “Your family vacations are destroying other families.”

Statewide study: Only 1% of California homes are short-term rentals

According to Beacon Economics — one of California’s leading economic consulting firms — only 2.7% of the county’s housing units operate as short-term rentals.

And those are primarily expensive homes — the average value is $1.2 million — that would not be affordable to most local households anyway.

While it focused on San Luis Obispo County, a similar study by the nonprofit Milken Institute reached the same conclusion for the entire state.

“STRs (short-term rentals) account for about only 1% of California’s housing stock, and most are expensive single-family homes that would not otherwise add to needed affordable housing supply,” the 2022 study found.

Not all vacation rentals are million-dollar homes

Still, there’s no question that vacation rentals reduce the supply of housing for permanent residents — even if it’s only to a small degree.

Here’s how Krista Jeffries of the SLO County housing advocacy group YIMBY Action puts it: “The YIMBY position is that short-term rentals are not the major driver of the housing crisis, but they are certainly not helping.”

Another thing: It’s not just high-end housing that’s taken off the permanent housing market.

Check out Airbnb listings and you’ll find a variety of housing types: mobile homes, travel trailers, cottages, apartments, condos, modest tract homes, along with some luxury homes — mansions even — that drive up the average value of Airbnbs.

To conclude that short-term rentals are predominately high-end homes that are out of the price range of most households is misleading. At least a portion of those rentals would be reasonably affordable to residents.

No, vacation rentals aren’t ‘destroying families’

While it’s hyperbole — and grossly unfair — to claim that Airbnbs are “destroying families,” it’s imperative that local governments enforce limits on short-term rentals so the percentages don’t creep beyond the current 2% or 3% to 5% or 6%.

It’s one thing to rent out a spare bedroom for some additional cash to help cover the mortgage, but it’s another when entire houses that were intended for local families — because isn’t that what R-1 zoning implies? — are snapped up by investors and converted into vacation rentals.

Not only does that lock out locals, but also, too many vacation rentals in one area can create a nuisance for neighbors. Sometimes even one Airbnb can be a hassle.

Reining in vacation rentals

Several jurisdictions are indeed cracking down by placing a ceiling on short-term rentals, as well as putting restrictions on how existing ones operate.

Santa Barbara recently announced a pilot program aimed at uncovering unpermitted short-term vacation rentals.

“Owners of rental units have found that it’s more economically advantageous to rent their units as a vacation rental for 30 days, or less, than for a longer term,” City Attorney Sarah Knecht told KCBX Radio.

The Milken Institute study is correct in concluding that short-term rentals are not a “significant driver” of California’s housing crisis, “which is instead driven by decades of underdevelopment, especially of affordable multifamily units.”

But that should not be interpreted as permission to allow the number of vacation homes to inch up over time, especially new housing that’s been approved with the understanding that it will be for local residents.

After all, what’s the point of building more houses if we’re going to turn around and allow them to be turned into vacation homes?

Until California’s housing shortage eases — if that ever happens — new developments intended as single-family housing must remain single-family housing.

Local agencies also should be conservative in the number of short-term rental permits they allow in existing neighborhoods, particularly when entire homes are used as rentals.

Consider making the permits good for a limited number of years, so that one or two homeowners can’t hold them in perpetuity, freezing out all other applicants.

“Whether that’s a home that a family has owned for generations, or a newly built ADU or cottage on site, allowing people to take turns recouping their home investment before that home is returned to the long-term rental market is an equitable solution that would also incentivize ADU construction,” Jeffries wrote.

“Long-term rentals still make money; they just don’t make as much money as quickly as short-term rentals.”

This story was originally published September 10, 2023 at 5:00 AM with the headline "Are Airbnbs ‘morally sketchy’? Studies say no, but not everyone agrees | Opinion."