Conversion or construction of homes to be short-term vacation rentals continues to be a big issue around the state.  A couple of legislators promised to make this a topic of priority for them for the next legislative session, and there is apparently a working group tackling it.  Communities around the state, but particularly those that have a tourism focus (Springdale, Moab, Park City, Brian Head, and even neighborhoods near the entrances to the ski resort canyons) have made noise about this.  Even Gov. Cox has expressed concern over the issue, saying,

 “(this) is something we haven’t had before. … This is a new phenomenon,” Cox said. “We’re taking houses, and we’re turning them into hotels. … That’s housing stock that now isn’t being rented to families or available for purchase by first-time homeowners or others.  I’m a private-property-rights person,” he said, adding, “I don’t like to tell people they can’t do those types of things with their property,” but Cox also called short-term rentals “an issue we need to talk about more” in dealing with the state’s housing crisis.

No question, short-term rentals are a significant part of the housing stock in tourism communities, but how much of an impact are they really having, both in those communities, and around the state?

A recent piece in the DesNews by Lee Sands of the Libertas Institute seems to shed some light and perspective on STRs.  Sands says,

The impacts of a measure like banning short-term rentals statewide, would provide a maximum of 17,236 new total housing units to the state — or 1.6% of the current total housing units. This many homes entering the market would increase supply and undoubtedly apply some downward pressure on prices where short-term rentals are concentrated. However, the positive effects on the housing crisis would be temporary (and relatively minor).

He also points out that in resort communities, STRs are generally high-end housing, not affordable ones.

These resort areas feature homes, of virtually any size, at prices well over $1 million. Restricting short-term rentals (more than they already are) in these areas would do practically nothing to provide affordable housing stock. The reason is simple — practically none of the homes being used as short-term rentals, if converted to long term rentals, would be affordable under any definition.

The better way to address the issue, he says:

For example, if resort towns and counties want more affordable housing, lawmakers should consider reforming the zoning laws that prevent the construction of duplexes, small courtyard apartments, or other housing referred to as the “missing middle.” Other barriers to supply, such as unnecessarily large minimum lot sizes and difficult permitting processes, are also worth serious examination.

The issue of STRs will the be subject of a session at the upcoming APA Utah annual conference in Lehi.