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Short Term Rental News and Ideas

Author: Jed Collins

  • The Hidden Dangers of Inflated Seller Concessions: A Legal Perspective

    The Hidden Dangers of Inflated Seller Concessions: A Legal Perspective

    As your Legal & Policy Contributor, I recently had the pleasure of listening to an incredibly informative segment on the Shortterm Show podcast, hosted by the insightful Avery Carl. You can find the full discussion here:

    In a recent discussion, Avery Carl and commercial real estate attorney Carrie Rosati explored some of the riskier “hacks” in real estate investing. One particular point, around the 29-minute mark, focused on seller concessions. As the Legal & Policy Contributor, this part of their conversation grabbed my attention due to its serious legal implications.

    Understanding the Limits of Seller Concessions

    Commercial real estate attorney Carrie Rosati clearly explained to Avery Carl that there are usually limits on how much money a seller can give back to a buyer for expenses like closing costs and prepaid items. These limits typically range from 2% to 6% of the property’s price, and the exact percentage depends on the type of loan. This system is in place to protect the fairness of the deal and prevent artificially inflated property values.

    The Dangerous “Cash Back Hack”

    However, some investors are trying to get significantly more cash back than these rules allow. The podcast described a strategy where a buyer offers the seller the asking price (for example, $500,000) but secretly arranges for a much larger amount (like $100,000) to be paid back at closing. This secret cash back agreement is hidden from the lender, often by using a separate LLC to make it look like a deal with an unrelated company.

    Carrie Rosati didn’t mince words: “This is so not a gray area. This is this is clear mortgage fraud.” This strong warning from a seasoned legal expert should make anyone considering this tactic think twice.

    As Ms. Rosati expertly explained, this scheme works by “artificially inflating the value of the property” to get a bigger loan than the property is actually worth. Lenders rely on loan-to-value ratios (the amount of the loan compared to the property’s value), and this practice undermines that basic principle. She also pointed out that borrowers usually tell the lender they’ve disclosed all parts of the purchase agreement and that the stated price is the real price. By hiding a separate agreement for a large cash back, these statements become false.

    Why This Matters: A Reminder of the 2008 Crisis

    Avery Carl wisely connected this practice to the issues that contributed to the 2008 financial crisis. When property values are inflated, and loans are based on these inflated numbers, it creates a situation where “the bank has 10 $500,000 loans out on what are essentially $400,000 properties.” This excessive borrowing means lenders don’t have enough security if borrowers can’t repay their loans. If many borrowers default, the bank can’t recover the full loan amount, which can lead to significant financial instability – something we definitely want to avoid repeating.

    Serious Consequences: Federal Crimes

    The risks of engaging in such a scheme go far beyond just having your loan called back. As the highly experienced Carrie Rosati emphasized, “These are the kinds of things the government investigates. And you don’t want to be in that position. It’s a It’s a really bad idea.” She further clarified that mortgage fraud isn’t just a state crime; it’s also a federal offense, which can lead to severe penalties, including large fines and even jail time.

    A Word of Caution and Wise Advice

    While the idea of extra cash back might seem appealing, especially for investors trying to maximize returns or manage their budget, it’s essential to understand the significant legal dangers involved. Ms. Rosati wisely advises, “If you think you’ve got if you think you’ve you’ve figured something out before you before you sign on the dotted line and you put yourself at risk, call a lawyer, pay him for an hour time of consultation, ask him the question.”

    It’s always best to seek professional legal advice before entering any transaction that might be legally questionable. Being open and honest with your lender is crucial. Trying to deceive them for a short-term gain can have severe long-term consequences. Remember, the goal is to build lasting wealth through smart and ethical investment strategies, not to endanger your financial future with risky and illegal schemes.

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  • Real Estate Depreciation: What’s Happening Now and What Might Change in 2025

    Real Estate Depreciation: What’s Happening Now and What Might Change in 2025

    Hi everyone, Jed Collins here, your guide to the rules and policies around short-term rentals. Today, we’re going to talk about something called depreciation. It’s a way for people who own buildings to lower their taxes over time. Think of it like saying a building slowly loses value as it gets older, and the tax rules let you count that loss.

    Right now, in early 2025, there are rules about how much of a building’s cost you can deduct each year. But things might change later this year! Let’s break it down in a simple way.

    How Depreciation Works Today

    Usually, when you buy a building, you can’t just say it all went away in one year for tax purposes. Instead, you have to spread out the cost over many years. This is called depreciation.

    There are different ways to do this. One common way is called MACRS (it’s a long name, so don’t worry about remembering it!). MACRS says how many years you have to take to lower the value of your building for taxes. For a place where people live, like an house, it’s usually 27 and a half years. For other buildings, like stores or offices, it’s often 39 years.

    Another rule is called bonus depreciation. This lets you take a bigger chunk of the cost off your taxes in the first few years. For things bought in 2025, you can deduct 40% of the cost right away! This is less than before. For example, if you bought something for $100,000 in 2022, you could deduct the whole $100,000 right away. In 2023, it was 80%, and in 2024, it was 60%. Now it’s going down to 40%.

    There’s also something called Section 179. This lets some businesses take the full cost of certain things off their taxes right away, up to a certain amount each year. For 2025, that limit is $1,250,000. But there are rules about what kind of property this works for, and your business has to have enough income.

    What Could Change in 2025?

    Now, here’s where it gets interesting. The people in charge of making laws about money (like taxes) have been talking. They made a plan in April 2025 that could lead to some big changes later this year.

    One of the big ideas is to bring back 100% bonus depreciation! That means if you buy something that qualifies, you could deduct the entire cost in the first year, just like it was in the past. Some people are even saying this could go back to January 20, 2025.

    This is a big deal for people who invest in buildings. If they can deduct more money sooner, it can help them save on taxes and have more money to use for other things.

    What This Means for You

    If you own or are thinking about buying a short-term rental, these possible changes could be important.

    • If 100% bonus comes back: You might want to think about buying things or making improvements sooner rather than later to get the bigger tax break.
    • Even with 40% bonus: It’s still a good idea to understand how depreciation works. There are even ways to study your building to find parts that can be depreciated faster, called cost segregation.

    But remember, these are just possibilities right now. The laws could stay the same. So, it’s important to keep an eye on what happens and talk to a tax expert to see what’s best for you.

    Get out full report here.

  • Short-Term Rentals in New Braunfels: What You Need to Know

    Short-Term Rentals in New Braunfels: What You Need to Know

    Let’s talk about the rules for short-term rentals (STRs) – like Airbnb and VRBO – in New Braunfels, Texas. It can seem like a lot, but we can break it down in a way that’s easy to understand.

    What’s a Short-Term Rental?

    In New Braunfels, a short-term rental is a house or a two-family house that people rent out for less than 30 days at a time. Think of it like a hotel, but it’s someone’s home. This doesn’t include regular hotels, motels, or apartments that rent for longer periods. If you advertise your house online for short stays, you need to follow these rules!

    Getting Permission: The Permit

    If you want to run a short-term rental in New Braunfels, you need to get a special permission slip from the city called a permit. You can’t just start renting without it. You have to apply online through the city’s website.

    To get a permit, you’ll need to show them some important papers, like:

    • Proof that you own the house.
    • A drawing of your property showing where the house is and where people can park their cars (not in the garage!).
    • A drawing of the inside of your house, showing all the rooms and where people sleep.
    • Proof that you have insurance in case something goes wrong.
    • The name and phone number of someone who can be there quickly if there’s a problem.
    • A letter if someone else is helping you manage the rental.
    • A paper that tells renters the rules and who to call if there’s an emergency.
    • Information about your water and other bills.

    There’s also a fee to apply for the permit and another fee every year to keep it active. Someone from the city will also come to check your house to make sure it’s safe for renters. Once everything is okay, you’ll get your permit!

    Where Can You Have a Short-Term Rental? Zoning Rules

    This is a big one. The city has rules about where you can and cannot have short-term rentals based on how the land is zoned (what the city says that area can be used for).

    • No STRs in Normal Neighborhoods: If your house is in an area zoned for regular houses (like where most people live), you usually can’t have a short-term rental. This is something people are fighting about in court right now.
    • STRs in Some Business Areas (Maybe with Extra Steps): In some areas zoned for businesses, you might be able to have a short-term rental, but you might need to get another special permission called a “Special Use Permit” (SUP). This is like asking the city extra nicely if it’s okay.
    • No SUP Needed in Certain Business Areas: There are a few specific business zones where you might not need the extra SUP, but you still need the regular permit.
    • Getting a Special Use Permit (SUP): Getting an SUP can take a while (maybe three months!) and cost extra money. The city will tell your neighbors you want to do this, and there will be public meetings where people can say if they agree or disagree. You’ll need to give the city a lot more information about your property. Even if you do all this, the city might still say no.
    • No STRs in Floodways: If your house is in an area that floods easily (a floodway), you can’t have a short-term rental, no matter what the zoning is.

    How to Check: The city has a cool online map where you can type in an address and see if short-term rentals are allowed there.

    Rules for Running Your Rental

    Once you have your permit, you need to follow some rules to make sure everything runs smoothly and doesn’t bother the neighbors:

    • How Many People Can Stay? You can have two adults for every bedroom, plus two more adults in the whole house.
    • Parking: You need to have at least one parking spot outside the garage for each bedroom.
    • Noise: You have to follow the city’s general rules about noise. If your renters are too loud, people can complain to the police.
    • Trash: You and your guests need to follow the regular trash rules for houses in the city.
    • Safety: You need to have things like smoke detectors and fire extinguishers that work. You also need to have a plan for how people can get out of the house in an emergency, and it needs to be easy for guests to see.
    • Insurance: You need to keep your insurance up to date.
    • Someone to Call: You need to have a person who is available 24/7 and can get to the property within an hour if there’s a problem.
    • Things to Show: You need to put your permit sticker on the property and give your guests the information sheet with the rules and emergency numbers.

    The city also suggests having a written agreement with your renters.

    Paying Taxes: Hotel Occupancy Tax (HOT)

    If you rent your place for less than 30 days, you have to collect a special tax from your guests called the Hotel Occupancy Tax (HOT). There are a few parts to this tax:

    • State Tax: Texas charges a 6% tax.
    • City Tax: New Braunfels charges a 7% tax.
    • County Tax (Maybe): If your property is in a certain part of the city (Guadalupe County), you might have to collect another county tax.
    • Water District Fee (Usually Not in the City): There’s another fee for properties near the lake, but this usually doesn’t apply to rentals within the city.

    Important! You are the one who needs to collect and send the city’s 7% tax (and the county tax if it applies). Websites like Airbnb and VRBO might collect the state tax, but they usually don’t handle the city’s tax for you. You have to do it yourself through the city’s online portal every month, even if you didn’t have any renters that month. If you don’t pay on time, you’ll have to pay extra fees! The city can also check your records to make sure you’re paying the right amount.

    What Happens if You Break the Rules?

    The city has people who check if short-term rentals are following the rules. If people complain about your rental or if you don’t have a permit, you could get in trouble. This could mean getting fines or even having your permit taken away. If you don’t pay your taxes, you’ll also have to pay penalties and could even face legal charges.

    Things Are Changing: New Rules and a Court Case

    The rules for short-term rentals in New Braunfels have been updated recently, and there’s a big court case going on right now. Some people think the city’s rule that bans short-term rentals in regular neighborhoods is unfair. The court case is still ongoing, so the rules might change in the future.

    What Should You Do?

    If you’re thinking about running a short-term rental in New Braunfels, it’s really important to:

    • Check the City’s Website: The city has a lot of information online about the rules.
    • Use the Online Map: See if short-term rentals are allowed where you want to operate.
    • Read the City’s Guide: They have a special guide for short-term rentals.
    • Talk to a Lawyer (If Needed): If you have questions about the rules or the court case, it’s a good idea to talk to a lawyer who knows about this stuff.
    • Contact the City: You can also call the city if you have specific questions.

    It’s important to follow all the rules so you can run your short-term rental safely and without problems!

    Learn More Here: City Of New Braunfels

  • Dallas’s Ongoing Short-Term Rental Saga: A Year After the Ban

    Dallas’s Ongoing Short-Term Rental Saga: A Year After the Ban

    The Ban That Wasn’t: A Recap

    In June 2023, the Dallas City Council voted to adopt zoning ordinance amendments intended to significantly restrict short-term rentals, primarily targeting single-family residential zones. This decision followed numerous complaints from residents regarding noise, parking issues, and general disturbances associated with short-term rental properties operating in their neighborhoods. The aim was to preserve the character of residential areas and address concerns about neighborhood stability.

    The city’s approach involved amending the zoning ordinance to limit where STRs could operate and establishing operational requirements for those permitted in designated zones (such as multi-family, commercial, and mixed-use districts). These requirements included registration with the city, property inspections, the designation of a local responsible party, and adherence to occupancy limits and noise restrictions.

    Legal Roadblocks: The Temporary Injunction

    However, the implementation of these changes faced immediate legal challenges. The Dallas Short-Term Rental Alliance, representing rental operators, filed a lawsuit in October 2023, arguing that the new regulations violated the Texas Constitution and constituted an illegal taking of property rights. They sought a temporary injunction (a court order prohibiting a specific action until a trial can be held) to prevent the city from enforcing the restrictions.

    In December 2023, a Dallas County district court granted this temporary injunction, effectively putting the enforcement of the more restrictive STR regulations on hold. The court found that the rental operators had presented sufficient evidence to suggest they would likely succeed in their argument that the city’s ordinance was unconstitutional and would suffer “imminent and irreparable harm” if the changes were enforced (Order on Temporary Injunction, December 6, 2023).

    The Latest Setback: Appellate Court Ruling

    Adding another layer to this complex situation, the Dallas Fifth Circuit Court of Appeals recently upheld the lower court’s decision to grant the temporary injunction (Fifth Court of Appeals Opinion, February 7, 2025). The appellate court panel agreed with the trial court’s assessment that enforcing the new restrictions immediately could cause irreparable harm to the STR operators while the legal case proceeds. The court specifically noted the language of the ordinances, which stated they would “take effect immediately,” potentially infringing on the operators’ property rights before a full legal determination could be made.

    This ruling means that, for the time being, short-term rentals can continue to operate throughout Dallas, even in areas where the city intended to significantly limit them. The appellate court’s decision underscores the legal complexities surrounding the regulation of short-term rentals and the challenges municipalities face in implementing broad restrictions.

    Enforcement of Existing Ordinances

    While the intended limitations on STRs in certain zones remain unenforceable due to the injunction, the City of Dallas has indicated that it will continue to enforce its existing ordinances related to minimum property standards, noise disturbances, and private nuisances (City of Dallas Short Term Rentals Home Page). This means that even though STRs can currently operate more broadly than the city intended, they are still subject to regulations aimed at ensuring basic safety and preventing disruptive behavior.

    Between June 2023 and September 2024, the city received approximately 160 STR-related complaints, primarily concerning noise, operational issues, parking, and litter (D Magazine, February 10, 2025). This suggests that while a move to restrict STRs was pursued, some level of regulation and enforcement remains necessary to address community concerns.

    The Path Forward: Uncertainty Remains

    The recent appellate court ruling does not represent a final verdict on the legality of Dallas’s efforts to restrict short-term rentals. It merely allows STRs to continue operating while the underlying lawsuit proceeds through the courts. The city has several options, including appealing the appellate court’s decision to the Texas Supreme Court or focusing on the trial for the actual lawsuit, the date for which has not yet been set.

    Some members of the City Council have also expressed a willingness to reconsider the approach taken and explore alternative strategies, such as enhanced enforcement of existing regulations or the development of a more nuanced ordinance through further engagement with stakeholders (D Magazine, February 10, 2025).

    The legal battle in Dallas reflects a broader debate occurring in cities across Texas and the nation regarding how to balance the rights of property owners to utilize their property as short-term rentals with the concerns of residents about the potential negative impacts on their neighborhoods. The contrasting outcome in Fort Worth, where a district court recently upheld the city’s authority to ban STRs by structuring the ban within its zoning code (CandysDirt.com, March 13, 2025), highlights the importance of the legal framework underpinning such regulations.

    Conclusion

    For now, the short-term rental landscape in Dallas remains in a state of flux. The city’s attempt to implement significant restrictions is stalled by ongoing legal challenges, and a recent appellate court decision has affirmed the temporary reprieve for STR operators. While existing city ordinances related to property standards and nuisances continue to be enforced, the fundamental question of where and under what conditions short-term rentals can operate in Dallas remains unresolved. As the legal proceedings continue, both homeowners and short-term rental operators must stay informed about future developments that will ultimately shape the regulatory framework for this evolving sector of the housing market.

  • Decoding the Disruption: Trump’s Tariffs and the Future of Short-Term Rentals

    Decoding the Disruption: Trump’s Tariffs and the Future of Short-Term Rentals

    The implementation of the 2025 Trump Tariffs marks a notable shift in international trade policy, and as the Legal & Policy Contributor for this blog, it’s my responsibility to analyze the potential ramifications for the short-term rental (STR) market. While the tariffs are broad in scope, their impact on tourism, particularly from our neighbors to the north, Canada, warrants careful consideration.

    In early April 2025, President Trump enacted a “reciprocal” tariff plan, citing trade imbalances and unfair practices. This involved a baseline 10% tariff on most imports, effective April 5th, with higher, “individualized” tariffs for specific countries following on April 9th. While Canada wasn’t initially subject to these individualized tariffs, pre-existing duties on steel, aluminum, and automobiles remained, alongside a complex structure of tariffs and exemptions under the United States-Mexico-Canada Agreement (USMCA). Predictably, Canada responded with its own countermeasures, including tariffs on US automobiles and a range of other goods.  

    This multi-layered approach, while intended to address trade deficits, introduces considerable complexity and uncertainty, factors that often deter discretionary spending like international travel. Even with USMCA exemptions, the tariffs on key sectors, coupled with the overall trade dispute, are likely to sour the economic relationship between the US and Canada, potentially leading to a decrease in leisure travel.

    The Rising Cost of Crossing the Border

    The tariffs are expected to increase the cost of US travel for Canadians through both direct and indirect mechanisms. Directly, the tariffs will likely inflate the prices of imported goods within the US. Canadian tourists purchasing goods will likely face higher prices as American businesses pass on tariff costs. Indirectly, the 25% tariff on automobiles could eventually raise rental car prices. Furthermore, Canada’s retaliatory tariffs on US goods could increase the cost of living for Canadians, reducing their discretionary spending on travel. Economic uncertainty stemming from the trade dispute could also negatively impact the Canadian dollar’s exchange rate against the US dollar, making US travel more expensive. Experts anticipate that these tariffs will generally lead to higher prices for American consumers , and the travel industry is no exception, with potential increases in operating costs for airlines and hotels being passed on to consumers.  

    Destinations on Edge: Where Will Canadians Stay Away?

    Historically, Florida, California, Nevada, New York, and Texas have been the top US destinations for Canadian tourists seeking short-term rentals. Within these states, Orlando, Las Vegas, and New York City are particularly popular. Border states like New York and Michigan also heavily rely on Canadian tourism , with Detroit and the Wildwoods on the New Jersey Shore being notable examples. Even destinations like Virginia Beach have acknowledged the potential impact and are offering discounts to attract Canadian visitors.  

    Destinations with strong historical ties to Canada and those located near the border are particularly vulnerable. Las Vegas, with nearly half of its international airport arrivals from Canada , stands to see a significant impact on its short-term rental market.  

    The Economic Stakes: Billions on the Line

    Canada is the leading source of international visitors to the US. In 2024, Canadians made 20.4 million trips, spending $20.5 billion and supporting an estimated 140,000 American jobs. Even a modest 10% reduction in Canadian travel could result in 2 million fewer visits, a $2.1 billion loss in spending, and 14,000 potential job losses.  

    Early data from 2025 already indicates a decline in Canadian travel to the US. Vehicle crossings and air travel have both decreased , and hotel bookings from Canada to US destinations have also seen a drop. Notably, vacation rental professionals in Florida reported a 16% decline in Canadian reservations through mid-February 2025, and rental managers in Hawaii saw a 14% decrease. Border regions are also feeling the pinch, with hotel demand down in Niagara Falls, NY, and Bellingham, WA.  

    Key Table 1: Impact of Reduced Canadian Tourism on Select US States (Based on Early 2025 Data)

    StateMetricPercentage Change (Year-over-Year)Source
    FloridaDecline in vacation rental reservations-16%
    HawaiiDecline in rental bookings-14%
    New YorkDecrease in hotel room demand (Niagara Falls)-8%
    WashingtonDecrease in hotel room demand (Bellingham)-12%

    Looking North and Beyond: Alternative Destinations

    Faced with increased costs and a potentially less welcoming perception of the US, Canadian tourists have numerous alternative destinations. The Canadian government has encouraged domestic travel , and searches for domestic Airbnb stays have reportedly surged. Ontario’s cottage country is being promoted as a luxurious alternative , alongside other Canadian gems like the Cabot Trail, the Canadian Rockies, and major cities. The Canadian dollar’s parity with itself makes domestic travel financially straightforward.  

    Internationally, destinations where the Canadian dollar holds strong purchasing power, such as Australia, Egypt, and Vietnam, are becoming more attractive. Other popular alternatives include Portugal, Costa Rica, Thailand, and Mexico.  

    Economic Ripples: Regional Vulnerabilities

    The anticipated decline in Canadian tourism is expected to have a significant economic impact on the US short-term rental market, with border states and historically popular destinations bearing the brunt. Economists have warned of a potential slowdown in the US economy due to the tariffs , and the U.S. Travel Association has cautioned about substantial job losses and billions in lost spending. The early decrease in hotel demand in border regions and the drop in bookings in Florida and Hawaii are concerning indicators. Some experts believe the tariffs create an “unwelcoming environment” for foreign tourists, potentially exacerbating the decline.  

    Expert Opinions and Historical Echoes

    Industry associations like the Association of Canadian Travel Agencies (ACTA) and the U.S. Travel Association have voiced concerns about the tariffs’ impact on travel. Hotel industry data reveals a decrease in average hotel prices in major US destinations , possibly reflecting market uncertainty and softening demand. Notably, Canadian hotel searches for US destinations have significantly declined , suggesting a broader reluctance to travel south.  

    Historically, trade disputes between the US and Canada have correlated with decreased cross-border travel. During past disagreements, some Canadians informally boycotted American goods and services, including leisure trips. The early decline in Canadian travel in 2025 , the “collapse” in demand for flights between the two countries , and the surge in domestic Airbnb searches all echo this historical pattern.  

    Conclusion: Navigating the Shifting Landscape

    The evidence suggests that the 2025 Trump Tariffs will negatively impact the US short-term rental market due to a decline in Canadian tourism. Increased travel costs, a less welcoming perception, and attractive alternatives are all contributing factors. Border states and popular tourist destinations are most at risk.

    To mitigate these potential consequences, stakeholders in the US short-term rental market should consider diversifying their target markets, enhancing their value propositions, implementing strategic marketing, collaborating with tourism boards, and maintaining flexibility in their pricing and service offerings. While the long-term effects remain to be seen, proactive adaptation will be crucial for navigating this evolving landscape.

    Don’t Just Take my word for it, here are some helpful links.

    Where Have All the Snowbirds Gone? Canadians Cold on U.S. Travel: https://www.ctvnews.ca/canada/article/where-have-all-the-snowbirds-gone-canadians-cold-on-us-travel/

    How US-Canada Trade War Affects Tourism, Hospitality and Aviation Industry: https://www.travelandtourworld.com/news/article/how-us-canada-trade-war-affects-tourism-hospitality-and-aviation-industry-everything-you-need-to-know-about-aggressive-trump-tariff-policy/

    Canadian Travel to the United States Softens: https://nastra.org/canadian-travel-to-the-united-states-softens/

    As Canadians Cancel Trips Due to Trump, the U.S. Tourism Industry Could Lose Billions: https://www.cfpublic.org/2025-03-06/as-canadians-cancel-trips-due-to-trump-the-u-s-tourism-industry-could-lose-billions/

    Anger Against Trump is Forecast to Cost the US International Visitors: https://apnews.com/article/us-travel-canada-europe-international-tourism-22294ec17518cd28450cb3c0227b8351

    Tariff Ripple Effect: US Hotel Prices Adjust as Canadian Travel Interest Plummets: https://www.mylighthouse.com/resources/blog/tariffs-us-hotel-prices-impact/

  • Top 50 Short-Term Rental Markets in the US: Trends & Top Cities

    Top 50 Short-Term Rental Markets in the US: Trends & Top Cities

    What Defines the Top 50 Short-Term Rental Markets?

    The short-term rental (STR) industry continues to boom, fueled by traveler demand for unique stays and investor interest in high-yield markets. But with regulations shifting and competition rising, knowing where to invest matters more than ever. Using aggregated data from industry leaders like AirDNA, Mashvisor, and AllTheRooms, we’ve compiled the definitive list of the top 50 U.S. short-term rental markets by property volume in 2023. Whether you’re a host, investor, or traveler, this guide reveals the cities dominating the STR landscape—and why.

    Key Takeaways

    • 🏙️ Major Cities Dominate: New York City, Orlando, and Los Angeles lead with massive STR inventories.
    • 🏖️ Tourist Hotspots Rule: Coastal destinations (Miami, Myrtle Beach) and mountain towns (Gatlinburg, Lake Tahoe) thrive on seasonal demand.
    • 📜 Regulations Matter: Cities like San Francisco and New York enforce strict STR laws, while others (e.g., Gatlinburg, TN) embrace rentals.

    The Top 50 Short-Term Rental Markets in the US

    Below is the ranked list of cities with the highest volume of active short-term rental properties. Data reflects total listings, not revenue or occupancy rates.

    Major Urban Hubs

    1. New York City, NY – Despite stringent regulations, NYC remains #1 due to relentless tourist demand.
    2. Orlando, FL – Theme park capital (Walt Disney World, Universal) drives year-round family bookings.
    3. Las Vegas, NV – Convention traffic and entertainment keep occupancy rates high.

    Coastal & Vacation Hotspots

    1. Myrtle Beach, SC – 60 miles of beaches and golf courses make this a Southern favorite.
    2. Destin-Fort Walton Beach, FL – “Emerald Coast” luxury condos attract summer crowds.
    3. Outer Banks, NC – Quaint beach cottages and historic charm draw repeat visitors.

    Mountain & Nature Escapes

    1. Gatlinburg, TN – Gateway to the Smoky Mountains, with cozy cabins and hiking tourism.
    2. Lake Tahoe, CA/NV – Ski resorts and lakefront properties cater to adventure seekers.
    3. Sedona, AZ – Red rock views and wellness retreats fuel its boutique rental scene.

    Unexpected Standouts

    1. Branson, MO – Dubbed the “Live Music Capital of the World,” it’s a Midwest hidden gem.
    2. Minneapolis-St. Paul, MN – Strong corporate and event travel sustain its STR market.
    3. Santa Cruz, CA – Surf culture and proximity to Silicon Valley create steady demand.

    5 Markets Worth a Closer Look

    1. Austin, TX (#7)
      A blend of tech money, festivals (SXSW, ACL), and quirky vibes keeps Austin’s STR scene competitive. Investors favor East Austin’s modern lofts and downtown condos.
    2. Gulf Shores & Orange Beach, AL (#21)
      This Alabama coastal duo saw a 22% YoY increase in listings post-pandemic, thanks to affordable beachfront compared to Florida.
    3. Asheville, NC (#32)
      Craft beer, Blue Ridge Mountain views, and a thriving arts scene make Asheville a magnet for boutique cabin rentals.
    4. Park City, UT (#41)
      Beyond Sundance Film Festival, winter skiing and summer hiking ensure year-round bookings—especially for luxury chalets.
    5. St. Augustine, FL (#48)
      America’s oldest city blends history and beaches, with historic downtown homes fetching premium rates.

    Regulatory Considerations

    While markets like Gatlinburg, TN and Panama City Beach, FL openly welcome STRs, others pose challenges:

    • New York City: STRs under 30 days are illegal unless hosts register with the city and stay onsite.
    • San Francisco, CA (#33): Only “permanent residents” can host STRs, slashing inventory by 50% since 2019.
    • Honolulu, HI (#43): Oahu’s strict zoning laws limit permits, but demand remains sky-high.

    Conclusion

    The U.S. short-term rental market is far from one-size-fits-all. Urban hubs leverage tourism and business travel, while coastal and mountain markets bank on seasonal peaks. For investors, success hinges on balancing location, local regulations, and unique guest demand.

    Ready to dive deeper? Bookmark this list, and stay tuned for our next breakdown of occupancy rates and revenue leaders!