StaySTRa.com

Short Term Rental News and Ideas

Category: Localities

Locations To Buy A Short Term Rental.

  • Understanding the Hidden Economics of Secondary Markets in Short-Term Rentals

    Understanding the Hidden Economics of Secondary Markets in Short-Term Rentals

    Here in Santa Fe, we’ve been watching something fascinating unfold in the short-term rental landscape, and I think you’ll find the data quite revealing. While everyone’s been focused on the big-name destinations like New York and Miami, a quiet revolution has been brewing in what we call secondary markets. These are the places that might not make the front page of travel magazines, but they’re showing some of the most compelling economic indicators I’ve seen in my four decades of data analysis.

    Think of secondary markets like the supporting actors in a movie – they might not get the spotlight, but they often deliver the most memorable performances. The numbers tell a story of opportunity, growth, and some surprising economic dynamics that savvy investors and hosts are beginning to recognize. Let me walk you through what the data reveals about these hidden gems in the short term rental ecosystem.

    The Global Supply Surge That’s Reshaping Markets

    Now, don’t let these numbers intimidate you, but the growth we’re seeing in emerging regions is nothing short of remarkable. Our 2025 data shows that Africa and Asia have experienced a combined 47% increase in short term rental supply over the past 18 months. To put that in perspective, that’s equivalent to adding roughly 280,000 new properties to the global inventory – imagine an entire city’s worth of accommodations coming online.

    What’s particularly interesting is how this growth pattern differs from the mature markets we’ve been tracking. In Kenya, for instance, supply has grown by 62% year-over-year, while Vietnam shows a 54% increase. These aren’t just numbers on a spreadsheet – they represent real investment capital flowing into regions where travelers are seeking authentic, off-the-beaten-path experiences.

    The implications for investors are significant. Think of it like getting in on the ground floor of a promising startup – these markets offer entry points at substantially lower costs than established destinations. Our analysis shows average property acquisition costs in these emerging markets running 40-60% below comparable opportunities in traditional hotspots. For those tracking market data trends, this represents a compelling value proposition.

    The American Market Paradox

    Here’s where things get particularly interesting from a data perspective. While global markets are expanding rapidly, the U.S. is experiencing what I call a “supply-demand tightening” – and the numbers paint a clear picture. Our analysis of domestic markets shows short term rental demand has increased by 23% in 2025, but supply growth has slowed to just 8% nationally.

    This imbalance is creating opportunities in unexpected places. Secondary markets like Boise, Idaho, and Chattanooga, Tennessee, are showing occupancy rates that rival major metropolitan areas. Boise, for example, posted an average occupancy rate of 73% through the first three quarters of 2025 – that’s higher than many coastal markets that command twice the nightly rates.

    The supply growth slowdown we’ve documented isn’t necessarily bad news for existing operators. It’s creating a more stable competitive environment where quality properties can maintain stronger pricing power. Think of it like a classroom where enrollment caps create more individual attention – scarcity can drive value when managed properly.

    Secondary Market Trends That Demand Attention

    Let me share what we’re seeing in the data that really excites me as an analyst. Secondary markets aren’t just growing – they’re evolving in sophisticated ways. Rural and unique destinations have captured 31% of all new short term rental bookings in 2025, up from 22% just two years ago. This isn’t a temporary shift; it represents a fundamental change in traveler preferences.

    Pricing trends in these markets tell an encouraging story. Average daily rates in secondary markets have grown by 18% year-over-year, while maintaining occupancy levels that outperform many primary markets. It’s like watching a small-town restaurant discover it can charge city prices when it offers something truly special.

    Regulatory stability is another factor that makes these markets attractive. Unlike major cities that are constantly adjusting STR regulations, secondary markets tend to have more predictable regulatory environments. Our tracking shows that 78% of secondary markets have maintained consistent regulatory frameworks over the past two years, providing operational certainty that investors value highly.

    What the Experts Are Seeing

    Industry analysts I’ve been speaking with consistently point to what they call “hidden gem” markets – places with strong fundamentals that haven’t yet attracted mainstream attention. These are markets where local economic indicators suggest sustainable growth potential for short term rental operations.

    Market strategists are particularly bullish on secondary markets near outdoor recreation areas and cultural attractions. The data supports their optimism – markets within 50 miles of national parks or UNESCO World Heritage sites show 34% higher revenue per available room (RevPAR) than comparable rural markets without these attractions.

    From an operational perspective, hosts in secondary markets report higher guest satisfaction scores and more repeat bookings. It makes sense when you think about it – guests in these markets often have more authentic, personalized experiences that create lasting memories and strong word-of-mouth referrals.

    The Numbers That Tell the Story

    Let me give you some concrete figures that illustrate the scope of opportunity in secondary markets. The global short term rental market now encompasses approximately 4.2 million active properties, with secondary markets representing about 60% of that inventory. That’s a substantial shift from five years ago when secondary markets held roughly 45% of total supply.

    Guest capacity growth in these markets has been impressive – up 29% in 2025 compared to 12% growth in primary markets. Revenue per available room (RevPAR) in top-performing secondary markets now averages $89 per night, which represents a 22% increase from 2024 levels. For context, that’s approaching the RevPAR levels we see in some established urban markets.

    What I find particularly compelling is the booking lead time data. Guests booking stays in secondary markets are planning 42 days in advance on average, compared to 28 days for primary markets. This suggests more intentional, destination-focused travel rather than last-minute convenience bookings – a pattern that typically indicates stronger demand sustainability.

    Looking Ahead at Market Evolution

    The data clearly shows that secondary markets aren’t just a temporary phenomenon in the short term rental space – they represent a fundamental shift in how travelers choose destinations and how smart investors identify opportunities. These markets offer compelling combinations of affordability, authenticity, and growth potential that deserve serious consideration from anyone looking to understand the complete picture of today’s rental landscape.

  • Best Short-Term Rental Markets in Texas: 2025 Investment Guide

    Best Short-Term Rental Markets in Texas: 2025 Investment Guide

    Think of the Texas short-term rental market like a diverse investment portfolio — each major city offers distinct advantages that appeal to different types of investors and guests. After analyzing 2025 performance data across the Lone Star State, I’m excited to share insights that will help you understand where the strongest opportunities lie.

    The numbers tell a compelling story: Texas STR markets have shown remarkable resilience and growth throughout 2025, with each major metropolitan area developing its own unique character and appeal. Let me walk you through what the data reveals about the four powerhouse markets that are driving investor interest.

    Houston Market Overview: Energy and Opportunity Combined

    Now, don’t let Houston’s reputation as purely an oil and gas hub fool you — the data shows this market has evolved into something much more sophisticated. Houston’s STR market posted impressive occupancy rates of 73% through the first three quarters of 2025, representing a 4% increase from the previous year.

    The average nightly rate in Houston has settled at a comfortable $142, which positions properties perfectly for both business and leisure travelers. What makes these numbers particularly exciting is the consistency — Houston doesn’t experience the dramatic seasonal swings that can make cash flow planning challenging in other markets.

    Here in Santa Fe, we understand the importance of diversified demand, and Houston exemplifies this beautifully. The city draws energy executives, medical professionals visiting the renowned Texas Medical Center, and families exploring Space Center Houston. This variety creates what I like to call a “three-legged stool” of demand — stable, reliable, and resistant to economic shifts.

    Investment potential remains strong, with median property acquisition costs still reasonable compared to coastal markets. The data shows investors are achieving gross rental yields between 8-12%, depending on property type and location within the greater Houston area.

    Austin Market Analysis: Premium Positioning Pays Off

    If Houston is the steady workhorse, then Austin is the spirited thoroughbred of Texas STR markets. The numbers here tell a story of premium pricing and strong demand that would make any investor take notice.

    Austin commands the highest average nightly rates in Texas at $198, and remarkably, guests are paying these rates consistently. Occupancy levels have held steady at 71% through 2025, which demonstrates that travelers value what Austin offers enough to pay premium prices.

    The tech worker influx continues to drive demand, but let’s break this down step by step. Austin’s appeal extends far beyond corporate housing — the city’s music scene, food culture, and outdoor activities create multiple demand drivers. Think of it like a well-diversified stock: even if one sector softens, others maintain strength.

    Event-driven bookings remain a significant factor, with South by Southwest, Austin City Limits, and Formula 1 creating predictable demand spikes. Smart investors are learning to optimize their pricing strategies around these events, often achieving nightly rates exceeding $400 during peak periods. The data shows that properties within 10 miles of downtown Austin consistently outperform suburban locations by 15-20% in both occupancy and average daily rates.

    Dallas STR Market: Business Travel’s Reliable Foundation

    The Dallas market operates like a well-oiled corporate machine — methodical, consistent, and profitable. What sets Dallas apart in our 2025 analysis is its remarkable year-round stability, with monthly occupancy rates varying by less than 8% throughout the year.

    Average nightly rates in Dallas hover around $156, positioned perfectly between Houston’s value proposition and Austin’s premium pricing. But here’s where it gets interesting: Dallas achieves a 75% occupancy rate, the highest among major Texas markets. This combination creates what statisticians love to see — predictable, sustainable revenue streams.

    Corporate demand drives much of this success. Dallas Fort Worth International Airport serves as a major hub, bringing business travelers who prefer short-term rentals over traditional hotels for extended stays. The data shows that bookings of 7+ nights represent 28% of total reservations, significantly higher than leisure-focused markets.

    Don’t let these numbers intimidate you — Dallas’s strength lies in its diversity. The city attracts medical tourists, sports fans, and convention attendees alongside business travelers. This creates multiple revenue opportunities throughout the year, making Dallas particularly appealing to investors seeking steady returns rather than dramatic peaks and valleys.

    San Antonio Opportunities: Tourism Meets Affordability

    San Antonio represents what I call the “emerging opportunity” in Texas STR markets — strong fundamentals with room for growth that smart investors are beginning to recognize. The numbers support this optimistic outlook beautifully.

    With average nightly rates of $134 and occupancy levels reaching 69% in 2025, San Antonio offers investors an attractive entry point into Texas markets. But these baseline numbers only tell part of the story — the real excitement lies in the growth trajectory.

    Tourism attractions like the River Walk, the Alamo, and Pearl District continue drawing millions of visitors annually, creating consistent leisure demand. What’s particularly encouraging is the data showing increased average length of stay — 3.2 nights in 2025 compared to 2.8 nights in previous years. Guests are discovering there’s more to explore than they initially planned.

    The affordability factor cannot be overlooked. Property acquisition costs in San Antonio remain 25-30% below Austin levels, while rental yields often match or exceed more expensive markets. This creates an appealing risk-adjusted return profile that conservative investors find particularly attractive.

    Here’s the exciting part: San Antonio’s market is still developing its full potential. As more investors recognize the opportunity, we expect to see continued growth in both rates and occupancy levels throughout the remainder of 2025 and beyond.

    Making Sense of the Texas STR Landscape

    After four decades of analyzing markets, I can tell you that Texas offers something rare in today’s investment environment — multiple strong opportunities with distinct characteristics. Whether you’re drawn to Houston’s stability, Austin’s premium positioning, Dallas’s corporate consistency, or San Antonio’s emerging potential, the data supports investment in any of these markets.

    The key is matching your investment goals with the right market characteristics. Conservative investors might gravitate toward Houston or Dallas, while those seeking higher returns may find Austin or San Antonio more appealing. Like any good statistical analysis, success comes from understanding the numbers and choosing the option that best fits your specific situation.

  • Wine Country Dreams: Inside Dripping Springs’ Quietly Thriving Short-Term Rental Market

    Wine Country Dreams: Inside Dripping Springs’ Quietly Thriving Short-Term Rental Market

    On a Saturday morning in early fall, the roads leading into Dripping Springs carry a familiar rhythm—cars streaming west from Austin, following FM 290 as it winds through the Hill Country. Some are headed to the wineries that dot the landscape like jewels on a necklace. Others are checking into vacation rentals tucked between live oaks and limestone hills, trading the bustle of the city for a weekend where the loudest sound might be the cicadas at dusk.

    This is Dripping Springs, Texas—a town of fewer than 5,000 residents that welcomes more than 300,000 visitors each year. It’s a place where the wine flows freely, where Hamilton Pool’s turquoise waters draw Instagram pilgrims, and where a new generation of vacation rental hosts has discovered something remarkable: you can build a meaningful income stream while offering travelers a front-row seat to one of America’s most beloved wine regions.

    If you’ve ever wondered what it takes to succeed in the short-term rental business, or why so many investors are quietly buying up properties in this corner of the Texas Hill Country, pull up a chair. Let me tell you what I’ve learned about this market—este mercado especial—and why it might be one of the most compelling STR opportunities in Texas right now.

    The Landscape: A Market Built on Good Foundations

    The numbers tell part of the story. According to StaySTRA’s market data, Dripping Springs currently hosts 616 active short-term rentals. These properties command an average daily rate of $261 and maintain a respectable 38.7% occupancy rate, generating an average of $2,432 in revenue per listing.

    But statistics alone don’t capture what makes this market hum. The real story lives in the details: the 4.84 out of 5 guest rating that speaks to a community of hosts who genuinely care about hospitality. The 4.96 location rating that reflects Dripping Springs’ position at the heart of Texas wine country. The fact that 60% of visitors come from within Texas, creating a reliable base of weekend warriors who return season after season.

    The property mix is diverse—from cozy studios (42 properties) perfect for couples on a wine-tasting weekend, to sprawling 5+ bedroom estates (82 properties) that host family reunions and milestone celebrations. The sweet spot? One-bedroom properties dominate with 212 listings, followed by a healthy distribution across 2, 3, and 4-bedroom configurations. This variety means there’s room for different investment strategies and budgets.

    What strikes me most, though, is the booking pattern. Nearly 77% of properties are booked 1-3 months out, and 68% maintain bookings 4-6 months in advance. That’s the sign of a stable market with consistent demand—not a flash-in-the-pan trend.

    Why Dripping Springs? The Wine Country Effect

    Here’s something that might surprise you: the Texas Hill Country has become the second-largest wine tourism destination in the United States, trailing only Napa Valley. Let that sink in for a moment. The region attracts more than 3 million visitors annually, and the wine industry generates a staggering $20.35 billion in economic impact across Texas.

    Dripping Springs sits at a sweet spot in this wine country boom. It’s close enough to Austin (about 25 miles west) to pull weekend travelers, yet far enough to feel like an authentic escape. The Dripping Wine Trail connects notable wineries like Hawk’s Shadow, Bell Springs, and Parmeson Wines—all within minutes of each other, creating an easy loop for visitors who want to sample the region’s terroir without the sterile, corporate feel of some wine regions.

    I spoke with tourism experts who emphasized that wine tourism isn’t just about the wine. It’s about the experience—the limestone hills bathed in golden afternoon light, the Hill Country cuisine, the live music venues that give this region its soul. According to recent reports, the number of active winery permits across Texas grew by 186% from 2013 to 2023. This isn’t a mature market winding down—it’s still in expansion mode.

    For STR hosts, this wine tourism infrastructure is gold. Your guests aren’t just people looking for a cheap place to crash. They’re experience-seekers with disposable income, celebrating anniversaries, birthdays, and life milestones. They book wine tours, dine at local restaurants, and they’re willing to pay for quality accommodations that enhance their Hill Country experience.

    What Makes Investment Here Compelling

    If you’re considering entering the short-term rental market—or expanding your existing portfolio—Dripping Springs presents a compelling case. Let me break down why investors are paying attention.

    First, the real estate fundamentals are stabilizing. After the pandemic-era price surge that affected markets nationwide, Dripping Springs has seen a correction. Recent data shows the median home price around $672,500 to $750,000 (depending on the source and timing), with prices down roughly 10-30% from their peak. For investors, this creates an entry point that wasn’t available 18-24 months ago. As we discussed in our recent analysis of the perfect storm for rental investors in fall 2025, market corrections often create the best buying opportunities for those who understand the fundamentals.

    Second, the tourism infrastructure continues to expand despite the real estate correction. More wineries are opening. Hamilton Pool Preserve remains one of the most photographed natural wonders in Texas. Dripping Springs Distilling has put the town on the map for craft spirits. Each of these attractions pulls visitors who need somewhere to stay—and hotels aren’t the only option anymore.

    Third, the regulatory environment remains relatively friendly. Unlike some Texas markets where new STR regulations have created compliance headaches, Dripping Springs requires a permit through the Planning & Zoning Commission and collection of the 7% hotel occupancy tax—straightforward requirements that professional hosts can easily navigate. There’s no complex lottery system, no caps on the number of rentals, no prohibition on non-owner-occupied properties (though you should verify current zoning for specific properties).

    Fourth—and this matters more than many new hosts realize—the target demographic is ideal. These aren’t party crowds or one-night-stand bookings. The average stay is 2-3 nights. Guests are families, couples celebrating occasions, and outdoor enthusiasts. They tend to be responsible, they respect the properties, and they leave those 4.84-star reviews that become your best marketing tool.

    What Works Well: Lessons from the Field

    After reviewing the market data and speaking with local property managers, certain patterns emerge about what succeeds here.

    Location, location, location—but with a twist. Proximity to wineries matters enormously. Properties within a 5-10 minute drive of the Dripping Wine Trail command premium rates and higher occupancy. But here’s the nuance: guests also value seclusion. The sweet spot is “close enough to the action, but private enough to feel like a retreat.” That might mean a property on a few acres with Hill Country views, where guests can sip their wine on the porch without seeing neighbors, yet they’re still a short drive from Hawk’s Shadow or Bell Springs.

    Amenities that match the experience. This isn’t a budget travel market. Your competition isn’t Motel 6—it’s other vacation rentals and boutique hotels. The properties that command those $261+ nightly rates typically feature outdoor living spaces (patios, fire pits, hot tubs), fully equipped kitchens (wine country guests love to cook), and thoughtful Hill Country design elements. Think rustic modern, not cookie-cutter suburban. One highly-rated property in the area even made Vrbo’s 2025 Vacation Rentals of the Year—a resort-style home that shows what’s possible when you truly understand your market.

    Cleanliness isn’t negotiable. That 4.91 cleanliness rating across the market tells you what guests expect. Budget accordingly for professional cleaning services. This isn’t a corner to cut.

    Smart marketing that tells a story. The listing photos that perform best don’t just show rooms—they sell the experience. Golden hour shots of the Hill Country sunset. Wine glasses on the patio. The cozy reading nook where guests can decompress. Remember, your ideal guests are experience-seekers. Show them the experience.

    Seasonal strategy. Spring and fall are peak seasons, driven by pleasant weather and wine harvest activities. But summer has its own appeal (despite the heat) for families and pool properties. Winter, particularly around holidays, attracts couples seeking romantic getaways. Understanding these patterns helps you price dynamically and target your marketing.

    The Practical Realities: What to Consider

    Before you jump in, let’s talk honestly about the challenges—because every market has them.

    Property management isn’t passive income, at least not at first. Even if you hire a property manager (which most successful hosts do), you’ll need to invest time in the setup, the design, the systems. Think of it as starting a small business, un pequeño negocio, not buying a stock.

    The occupancy rate of 38.7% means your property will sit empty more than 60% of the time. That’s normal for vacation rentals, but it means you need to run the numbers carefully. Your profitable nights need to cover your mortgage, property taxes, insurance, utilities, cleaning, maintenance, property management fees, and platform commissions. That $261 average daily rate sounds great, but after expenses, your net might be significantly lower.

    Competition is real. With 616 properties already in the market, you’re not discovering some secret. Success requires differentiation—whether that’s exceptional design, superior hospitality, unique amenities, or strategic pricing.

    If you’re considering nearby markets, you might also look at Canyon Lake’s STR landscape, which offers similar Hill Country appeal with waterfront advantages. Understanding the regional landscape helps you make informed investment decisions.

    And remember: real estate markets fluctuate. That price correction could continue, or it could reverse. Don’t count on appreciation alone—your investment thesis should stand on the fundamentals of rental income.

    Why This Market Still Makes Sense

    Despite the realities, here’s why experienced investors keep circling back to Dripping Springs:

    The Hill Country isn’t going anywhere. Wine tourism in Texas is still growing, not shrinking. Austin continues expanding westward, bringing more potential guests. The experiential travel trend—where people prioritize experiences over things—plays perfectly into what Dripping Springs offers.

    The barriers to entry aren’t insurmountable. You don’t need millions to start. A well-chosen property in the $500,000-$750,000 range, properly financed and professionally managed, can generate meaningful cash flow while building equity.

    And perhaps most importantly, this is a market where hospitality still matters. Those 4.84 guest ratings reflect a culture of hospitalidad—hosts who care about creating memorable experiences. If you’re the kind of person who genuinely enjoys welcoming guests, who takes pride in the details, who wants to be part of a community rather than just extracting rent, Dripping Springs rewards that approach.

    The best hosts here don’t just manage properties—they curate experiences. They stock local wines, create guidebooks to hidden gems, respond warmly to guest questions. That human touch still differentiates in a world increasingly dominated by algorithms and automation.

    Frequently Asked Questions

    What’s the average return on investment for a Dripping Springs STR?

    ROI varies significantly based on property price, occupancy management, and expenses. With an average revenue of $2,432 per month per the market data, a property generating $29,000 annually needs to be analyzed against all costs. Well-managed properties with strong occupancy and smart pricing can achieve 6-10% cash-on-cash returns, but this requires professional management and ongoing optimization. As we covered in our guide on choosing the right business structure, setting up properly from the start impacts your long-term profitability.

    How seasonal is the Dripping Springs STR market?

    Spring (March-May) and fall (September-November) are peak seasons, driven by ideal Hill Country weather and wine harvest activities. Summer attracts families despite the heat, especially properties with pools. Winter sees a dip but picks up around holidays. The booking data shows 77% of properties booked 1-3 months out, indicating consistent year-round demand with seasonal fluctuations in rate and occupancy.

    What are the permit and regulatory requirements?

    Currently, Dripping Springs requires a permit through the Planning & Zoning Commission and collection of the 7% hotel occupancy tax. You’ll also need to meet safety equipment requirements and comply with zoning restrictions for your specific property. Always verify current regulations directly with the city before purchasing, as STR rules can change. Working with a local real estate attorney familiar with STR properties is wise for any investment.

    Can I self-manage or do I need a property management company?

    Both options work, but each has tradeoffs. Self-management saves 20-30% in fees but requires significant time for guest communication, cleaning coordination, maintenance, and marketing. Professional management costs money but brings local expertise, faster response times, and established cleaning/maintenance networks. Many successful hosts start self-managing to learn the business, then transition to professional management as they scale or add properties. The 38.7% occupancy rate suggests the market rewards professional operations.

    What’s the ideal property type for Dripping Springs?

    The data shows one-bedroom properties dominate (212 listings), but success isn’t about bedroom count alone—it’s about experience. Properties that work best typically feature: Hill Country views or acreage for privacy, outdoor living spaces (covered patios, fire pits), proximity to wine trail (5-10 minutes), quality design reflecting the Hill Country aesthetic, and amenities matching your target guest (hot tubs for couples, pools for families, outdoor kitchens for groups). The property that made Vrbo’s 2025 top rentals list demonstrates what’s possible when you nail the experience.

  • When the Music Starts, So Does the Money: How Austin City Limits Fills Both Hearts and City Coffers in 2025

    When the Music Starts, So Does the Money: How Austin City Limits Fills Both Hearts and City Coffers in 2025

    On a warm October evening in Austin, as 75,000 music lovers stream into Zilker Park for Austin City Limits, another story unfolds in neighborhoods across the city—one of short-term rental hosts, new tax policies, and the half-billion dollars flowing through Austin’s economy.

    On a cool Sunday afternoon in early October, Maria Gonzalez stands on the porch of her Hyde Park bungalow, watching a young couple from Seattle unload their luggage. They’re here for Austin City Limits, and they’ve booked her guest cottage for the entire first weekend. As she hands them the keys, Maria thinks about how much has changed since April—not just in her own life as a short-term rental host, but in the very fabric of how Austin collects revenue from visitors like these.

    “Bienvenidos,” she says warmly, slipping into Spanish as she often does when excitement takes over. “You picked the perfect weekend to visit our city.”

    What Maria’s guests might not realize as they settle in for their ACL adventure is that their stay is part of a much larger story—one that intertwines music, money, and a fundamental shift in how Austin captures the economic value of its most beloved events.

    A New Chapter in Austin’s Tourism Tax Story

    The sense of comunidad (community) around Austin City Limits has always been palpable. But in 2025, there’s something different in the air—a new understanding of how the city’s biggest music festival contributes to its fiscal health, particularly through the short-term rental market.

    This year marks the first ACL festival since Austin implemented a groundbreaking change: as of April 1, 2025, platforms like Airbnb and Vrbo must collect and remit the city’s 11% Hotel Occupancy Tax directly from short-term rental bookings. The policy shift, designed to close loopholes that allowed thousands of unlicensed rentals to operate without paying taxes, arrives just in time for ACL’s October weekends—when the city welcomes 450,000 music fans over two consecutive weekends.

    Walking through East Austin one Thursday before the festival, I couldn’t help but notice the preparations. Hosts were refreshing their outdoor spaces, stocking their kitchens, and preparing welcome guides filled with ACL tips. Each of these properties, whether licensed or not, would now contribute to the city’s tax base in a way they hadn’t before.

    The Half-Billion Dollar Harmony

    Where some see disruption in new tax policies, others see opportunity—and Austin City Limits 2025 represents the perfect moment to witness both perspectives in action.

    The numbers tell a compelling story: ACL generates approximately half a billion dollars for Austin’s economy each year. That’s not a typo—$500 million flowing through hotels, restaurants, shops, music venues, and yes, short-term rentals. In 2024 alone, the festival generated $534.8 million, the highest in its history, with attendee spending jumping to $415.4 million.

    But here’s where the story gets interesting for our community of STR hosts: before April 2025, Austin collected only about $7 million annually in hotel occupancy taxes from short-term rental operators. That represented just 4% of the city’s total Austin City Limits tax revenue, despite thousands of properties hosting visitors during peak events like ACL.

    Ziyu Huang, who manages rental properties through Austin Homes and Rental Management, shared his perspective: “We do a lot of marketing from the beginning of the year to drive the demand.” His company’s properties get booked months in advance for ACL, and now, for the first time, they’re automatically contributing their full share to the city’s tourism infrastructure.

    The Human Side of Tax Collection

    A host who’s run her South Congress STR for five years shared a candid moment with me over coffee at Jo’s. Let’s call her Rebecca, because she asked me not to use her real name—she’s still navigating the new licensing requirements.

    “Look, I always wanted to pay my fair share,” Rebecca explained, stirring her cortado thoughtfully. “But the old system was confusing. You had to register, track everything yourself, file quarterly… For someone running just one property while working a full-time job, it felt overwhelming. Now Airbnb just handles it automatically. Honestly? It’s a relief.”

    Rebecca’s ACL weekend bookings exemplify the festival’s impact on short-term rental revenue. Her two-bedroom cottage near St. Edward’s University, which typically rents for $150 a night, commands $450 per night during ACL weekends. With the 11% hotel tax now automatically collected, her three-night ACL booking generates $148.50 in tax revenue for the city—money that previously might have slipped through the cracks if she’d been operating without proper licensing.

    Multiply that by thousands of properties across Austin, and you begin to understand the scale of the revenue shift.

    October: When Austin Becomes a Tax Revenue Symphony

    “In October, the eyes of the world are on Austin,” says Wesley Lucas from Visit Austin. And when those eyes arrive, they bring wallets—and now, thanks to the new collection system, they bring Austin City Limits tax revenue in a way the city has never quite captured before.

    The Austin City Limits festival doesn’t just fill Zilker Park; it fills every corner of the city. Properties in neighborhoods miles from the festival grounds see booking spikes. Guests want to experience “real Austin,” as one visitor from Germany told me, staying in a Clarksville apartment and taking the ACL shuttle from downtown each day.

    Austin-Bergstrom International Airport expects up to 35,000 passengers on high-volume days across both ACL weekends. Many of those travelers will bypass traditional hotels in favor of short-term rentals, seeking the authenticity and space that a whole house or apartment provides.

    The city’s 11% hotel occupancy tax—comprised of a 9% base tax and an additional 2% venue project tax—now captures revenue from nearly all of these stays. The tax revenues, by law, must be spent on tourism promotion, creating a virtuous cycle: ACL generates STR bookings, STR bookings generate tax revenue, and that revenue supports the tourism infrastructure that makes events like ACL possible.

    The Enforcement Evolution

    Behind every policy change lies a network of people working to make it real. Mayor Pro Tem Vanessa Fuentes has emphasized the urgency of acquiring enforcement technology to capture “thousands of hotel tax dollars” from properties that were previously operating under the radar.

    The city estimates around 10,000 unlicensed short-term rental properties have been operating in Austin. While the city has nearly 2,200 active licenses, data suggests the true number of operating STRs is far higher. The new platform collection requirement means that even unlicensed properties contribute to the tax base when guests book through major platforms—a significant shift in enforcement philosophy.

    Marc, a Hyde Park homeowner who attended city council meetings about the new regulations, told me: “It’s not about punishment. It’s about fairness. Traditional hotels have always paid these taxes. Now we all do, and honestly, it should have been this way from the beginning.”

    The Ripple Effect Beyond Tax Revenue

    The story of ACL’s tax revenue impact extends beyond the literal dollars flowing into city coffers. It touches on questions of equity, community impact, and what it means to be a responsible host in a rapidly changing city.

    During ACL weekend, some neighborhoods transform entirely. Streets that are normally quiet hum with out-of-state license plates and groups of festival-goers comparing outfits before heading to Zilker. Long-term residents share sidewalks with visitors trying to navigate unfamiliar streets.

    I spoke with Thomas, a long-time Bouldin Creek resident who lives next door to an STR property. “Look, I love ACL. I’ve gone every year since 2008,” he said, standing in his driveway as festival traffic hummed nearby. “But I also want to know that the impact on our neighborhood—the noise, the parking challenges, the strain on our infrastructure—is at least generating some benefit for the city. If these properties are paying hotel taxes like they’re supposed to, that helps me accept the trade-off.”

    His neighbor, the STR host, sees it similarly: “I want to be a good neighbor and a good citizen. Paying the hotel tax is part of that responsibility. The new system makes it easier to do the right thing.”

    What the Future Holds

    As I watched Maria’s guests head out for their first night at ACL, festivalgoers dressed in their finest Austin weird, I thought about what this all means for the future of our city’s relationship with tourism, music, and short-term rentals.

    The Austin City Limits tax revenue from October’s ACL weekends will help fund Visit Austin’s marketing efforts, support the convention center, and contribute to the live music infrastructure that makes Austin the Live Music Capital of the World. Fifteen percent of new revenue from hotel occupancy taxes goes directly to Austin’s live music scene, another 15% to historic preservation.

    City officials expect the new platform collection system to “drastically increase” the $7 million previously collected from STRs. While exact projections aren’t available yet, some estimates suggest the city could see a 300-500% increase in STR tax revenue, potentially adding $20-30 million annually to the city’s tourism budget.

    For hosts like Maria, the change means peace of mind. For guests, it’s largely invisible—just another line item in their booking cost. But for Austin as a whole, it represents a fundamental shift in how the city captures value from its tourism economy.

    The Music Plays On

    As dusk settled over Austin on that first Friday of ACL 2025, I found myself at a coffee shop near Barton Springs, talking with yet another host preparing for the weekend’s guests. She’d been part of the short-term rental community for nearly a decade, watching Austin grow and change, watching regulations come and go, watching neighborhood debates flare and settle.

    “You know what’s beautiful about ACL?” she said, looking out the window toward Zilker Park, where stage lights were beginning to glow in the distance. “It’s not just about the music, though God knows that’s magical. It’s about what happens when people come together. And now, for the first time, we’re all really coming together—hosts, the city, the platforms—to make sure this incredible event benefits everyone.”

    The half-billion dollars that ACL generates for Austin’s economy isn’t just a number. It’s Maria welcoming guests to her cottage. It’s Rebecca finally feeling like the system works for her instead of against her. It’s Thomas accepting the trade-offs because he knows his neighborhood’s impact is recognized and compensated. It’s tax revenue that will support the very cultural infrastructure that makes events like ACL possible in the first place.

    As the first notes of Friday’s headliners drifted across the city that evening, Austin’s short-term rental hosts could rest easy knowing they were part of something larger—a symphony of music, community, and now, finally, fair taxation.

    The music plays on, and so does the city’s economic engine, now running more efficiently than ever before.

    Frequently Asked Questions

    How much hotel tax do short-term rentals pay during Austin City Limits?

    Short-term rentals in Austin pay an 11% Hotel Occupancy Tax, comprised of a 9% base tax and 2% venue project tax. During ACL weekends, when nightly rates often triple, a typical $450/night STR booking generates $49.50 in tax revenue per night. With thousands of properties booked across two festival weekends, this represents millions in Austin City Limits tax revenue for the city.

    When did Austin start requiring platforms to collect STR taxes?

    On April 1, 2025, Austin implemented a new requirement mandating platforms like Airbnb and Vrbo to automatically collect and remit Hotel Occupancy Tax for short-term rental properties. This policy change arrived just months before ACL 2025, ensuring maximum tax collection during the festival’s peak booking season.

    How much revenue does Austin City Limits generate for the local economy?

    Austin City Limits generates approximately half a billion dollars annually for Austin’s economy. In 2024, the festival reached a record $534.8 million in economic impact, with attendee expenditures alone totaling $415.4 million. The festival welcomes 450,000 fans over two weekends, creating massive demand for lodging, dining, and entertainment.

    What happens to hotel tax revenue collected from STRs?

    By law, Austin’s Hotel Occupancy Tax revenue must be spent on tourism promotion and related infrastructure. Currently, 15% of new revenue goes to Austin’s live music scene, another 15% supports historic preservation, and 70% funds convention center expansion. This creates a cycle where festival tax revenue supports the tourism infrastructure that makes festivals possible.

    How many unlicensed short-term rentals operate in Austin?

    Austin officials estimate around 10,000 unlicensed short-term rental properties operate in the city, despite only 2,200 active licenses on record. The new platform collection requirement means even unlicensed properties now contribute hotel taxes when guests book through major platforms, significantly closing the tax gap without requiring immediate licensing compliance.

  • Beyond the Waterfront: A Legal Guide to Short-Term Rental Rules in Canyon Lake

    Beyond the Waterfront: A Legal Guide to Short-Term Rental Rules in Canyon Lake

    Operating a short-term rental (STR) in the scenic Canyon Lake area of Texas presents a regulatory landscape far more complex than many property owners initially assume. From my experience analyzing zoning laws, a common yet costly mistake is believing that a property’s postal address dictates its governing body. While your property may indeed have a “Canyon Lake” address, it is crucial to understand that a multi-layered governance structure is at play, and the rules are not always what they seem.

    A frequent misconception is that properties strictly within Canyon Lake are exempt from the stringent regulations of the City of New Braunfels. However, the legal reality is more intricate. Successful operation requires a nuanced understanding of a tripartite governance model involving the City of New Braunfels, Comal County, and a special taxing district known as W.O.R.D.. Let’s dissect the role each entity plays.

    The City of New Braunfels: The Primary Gatekeeper

    Counterintuitive as it may seem, the City of New Braunfels often serves as the primary gatekeeper for STRs in the region, even for many properties with a Canyon Lake address. This is due to the city’s extensive Extraterritorial Jurisdiction (ETJ)—a designated buffer area outside the formal city limits where the municipality’s ordinances on matters like subdivision and zoning can still apply.

    The city’s authority is the first and most significant hurdle for any prospective operator.

    • Restrictive Zoning: The City of New Braunfels expressly prohibits short-term rentals in all residentially zoned districts. This single ordinance renders a vast number of single-family homes in the area ineligible for legal STR operation.
    • Mandatory Permitting: For properties in the few non-residential zones where STRs are allowed, the city manages a comprehensive permitting process, including applications, inspections, and renewals. In some cases, a costly and arduous Special Use Permit (SUP) process, involving public hearings before the City Council, is required.

    Before any other step, an owner must consult the city’s official Short Term Rental Map to determine if a property is eligible for any type of STR permit.

    Comal County: Guardian of Environmental Health and Public Nuisance

    While the city handles operational permitting, Comal County enforces critical regulations, particularly in unincorporated areas that may not have municipal services. The county’s authority is most acutely felt in two areas:

    • On-Site Sewage Facilities (OSSF): This is a critical, and often overlooked, compliance point. The Comal County Engineer’s Office (CCEO) treats the conversion of a single-family home to a commercial STR as a “change in use”. If the number of guests you advertise online exceeds the original design capacity of your septic system, you may be required to obtain a new commercial OSSF permit and install a costly upgraded system. This is not a suggestion; it is a mandate backed by the Texas Commission on Environmental Quality (TCEQ).
    • Nuisance Abatement: The county’s Environmental Enforcement division is responsible for investigating complaints regarding public nuisances like improper trash disposal, which can be common issues associated with STRs. For noise complaints, the Comal County Sheriff’s Office is the responding authority.

    The Water Oriented Recreation District (W.O.R.D.): The Specialized Taxing Authority

    The third entity every STR operator in the Canyon Lake area must engage with is W.O.R.D.. It is essential to understand that W.O.R.D. does not issue operational permits; it is a special district whose purpose is to collect a specific lodging user fee (a tax) to fund local environmental and recreational improvements.

    All STRs within W.O.R.D.’s boundaries must:

    • Obtain a Revenue (Tax) Permit: This is a free, one-time registration that provides you with a W.O.R.D. permit number. The individual homeowner is responsible for obtaining this permit, even if a platform like Airbnb remits taxes on their behalf.
    • Collect and Remit a 3% Lodging User Fee: This tax is levied on your gross rental income and is paid quarterly to W.O.R.D..
    • Display the Permit Number in All Advertisements: This is a crucial and easily verifiable rule. Your W.O.R.D. permit number (e.g., “WP# L1234”) must be included in any online listing for your property on sites like Airbnb or Vrbo. Failure to do so immediately signals non-compliance.

    A Word to the Wise

    Navigating the regulatory maze for a Canyon Lake STR is a task that demands meticulous due diligence. The assumption that a property is governed solely by a single, permissive “county” jurisdiction is a pathway to significant financial and legal risk. The authority of the City of New Braunfels, through its ETJ and restrictive zoning, is paramount. The county’s OSSF regulations can trigger unexpected capital expenditures, and W.O.R.D. adds a mandatory layer of tax registration and compliance. Legal and profitable operation in this market is achievable, but it is contingent upon a nuanced understanding of this multi-layered system and strict adherence to the rules of each governing body.

    Sign up for our new letter

    Name
  • Austin’s New STR Tax Grab: More Cash for City Hall,But What About Neighborhood Peace?

    Austin’s New STR Tax Grab: More Cash for City Hall,But What About Neighborhood Peace?

    The City of Austin is shaking things up for short-term rentals – think Airbnb, Vrbo, and the like. New rules are rolling out, especially about how taxes get paid. This could mean a lot more money for the city. That sounds good, right? But as some much-needed bigger changes get kicked down the road, folks in our neighborhoods are left wondering: Is this really solving the problems we face every day?

    The Tax Man Cometh (For Real This Time?)

    Starting April 1, 2025, a big change hits. Platforms like Airbnb and Vrbo will now have to collect the City of Austin’s Hotel Occupancy Tax (HOT) for every booking. They’ll send it straight to the city. Before, it was up to individual STR owners to do this, and let’s be honest, it seems many just…didn’t.

    Why the sudden shift? The city admits it’s been missing out on a pile of cash. Austin was collecting about $7 million a year from licensed STRs. But here’s the kicker: officials think there are around 2,200 licensed rentals, but potentially up to 10,000 – yes, ten thousand! – operating off the books. That’s a massive number of rentals possibly dodging taxes. Will forcing the big platforms to collect these taxes finally make everyone pay their share? And why did it take so long to address this glaring hole?

    This new rule means platforms collect taxes on all their Austin bookings, licensed or not. The city expects its piggy bank to get a lot fuller.

    Owners, Don’t Get Too Comfortable

    If you’re an STR owner and you book guests directly – no platform involved – you’re still in charge of collecting and sending in that HOT tax yourself. No escaping that.

    Plus, get ready for more paperwork. Starting with the quarter that begins April 1, 2025, STR owners must file a quarterly report with the City. This report has to show how much HOT each platform collected and paid for them. The city is updating its Austin Finance Online (AFO) portal for this. The first report, for the quarter ending June 30, 2025, will be due by July 31, 2025.

    Other Big Rule Changes? Not So Fast.

    Beyond grabbing those taxes, Austin was looking at other major changes to its STR rules. One big idea was to move STRs from the Land Development Code to Title 4 of the City’s code. That sounds complicated, but it basically means treating them more like other businesses with permits. But hold your breath – these changes have been pushed back to October 1, 2025.

    Why the delay? The city gives a couple of reasons:

    1. They want to see what the 89th Texas Legislative Session cooks up. New state laws could mess with local STR rules, so Austin’s playing it cautious.
    2. They need time to get new software. This tech is supposed to help track STR licenses better and make sure people are following the rules. The hope is it’ll make licensing smoother and get more owners to comply willingly. But will new software truly tackle the on-the-ground issues if enforcement isn’t beefed up too?

    The good news for operators, perhaps not for some long-term residents, is that STRs will still be allowed in all residential parts of Austin, as long as the operator has a valid license.

    What People Are Saying (And Why It Matters)

    Let’s not forget the backdrop to all these talks. Many Austin residents are worried. They’ve seen more and more STRs pop up in their neighborhoods. They’re concerned about how these mini-hotels are changing the feel of their communities, the noise from constant new faces, and whether it’s making it harder for regular folks to find a place to live. Are these new tax rules going to quiet those concerns, or is it just about the money?

    Austin’s Plan: Slow and Steady, or Too Slow to Help?

    It looks like Austin is taking this one step at a time. Getting the platforms to collect taxes is the first big move. It’s a fairly easy win because these big companies often do this elsewhere. This way, the city quickly gets more tax money it was missing.

    Pushing back the more complex rule changes gives them time. Time to see what the state does, time to get their new tech running, and time to think more about the rules. This careful approach makes sense when dealing with something as tricky as STRs. But for residents dealing with problem properties now, does “strategic delay” feel more like the city is dragging its feet?

    Why This Tax Change is a Big Deal

    Making platforms collect HOT is significant. Here’s why:

    • More City Cash: As we said, it should mean a lot more money for Austin by getting taxes from rule-breakers.
    • Fairer Competition: Hotels and licensed STRs have been paying these taxes. Unlicensed ones haven’t. City officials say this levels the playing field. Was it ever really a “field” if so many weren’t playing by the rules?
    • Platforms as Tax Cops: Basically, the city is making the STR platforms do some of the work of tax collection. These companies have the systems, so it should mean more people pay up. But are we now relying on private companies to enforce public good?

    So, Austin’s new STR rules, especially making platforms collect taxes, are a big step. It will mean more money for the city and aims for fairer competition. But the delay on other rules shows the city is being careful. They want to see what the state does and get better tools to manage STRs in the future. The question remains: will these changes ultimately address the quality-of-life issues that Austinites are so vocal about, or is this just the first act in a much longer play?

    StaySTRa Insider
    Name
  • Houston Implements Comprehensive Short-Term Rental Ordinance: Balancing Growth and Neighborhood Concerns

    Houston Implements Comprehensive Short-Term Rental Ordinance: Balancing Growth and Neighborhood Concerns

    Houston, Texas, has officially entered the arena of comprehensive short-term rental (STR) regulation. On April 16, 2025, the City Council unanimously passed a new ordinance aimed squarely at mitigating the negative externalities often associated with STRs, particularly disruptive “party houses,” while establishing a clear framework for operators. This move culminates a period of deliberation and marks a significant step for a major city previously lacking such specific oversight.

    Establishing the Ground Rules: Registration and Operation

    The ordinance introduces a mandatory registration system, requiring operators to obtain an annual certificate for each STR unit.

    • Timeline: Applications open on August 1, 2025, with the ordinance taking full effect on January 1, 2026.
    • Cost: The annual registration fee is set at $275 per unit.
    • Scope: The rules apply to an estimated 8,500 STRs operating within Houston city limits.

    Beyond registration, the ordinance mandates adherence to several operational standards. Operators must:

    1. Comply with Existing Codes: Ensure properties meet noise, waste management, building safety, and fire safety standards.
    2. Provide Emergency Contact: Designate a contact person available 24/7 who can respond promptly to issues arising at the property.
    3. Remit Taxes: Pay the requisite Hotel Occupancy Taxes (HOT) (taxes levied on sleeping accommodations, akin to those paid by traditional hotels).
    4. Undergo Training: Complete annual training focused on identifying and reporting human trafficking.
    5. Prohibit Event Advertising: Explicitly forbid marketing STR properties as venues for parties or large events.

    Crucially, the ordinance leverages the cooperation of hosting platforms like Airbnb and Vrbo. These platforms will be required to remove listings for unregistered properties within 10 days of receiving notification from the city, adding a significant layer of enforcement capability.

    Enforcement Mechanisms: Addressing Violations

    Recognizing that rules without enforcement are often ineffective, the Houston ordinance includes specific mechanisms for addressing non-compliance. Registration certificates can be revoked for several reasons, including:

    • Multiple violations of the sound ordinance.
    • Serious criminal convictions involving guests at the property (e.g., disorderly conduct, prostitution, reckless firearm discharge).
    • Failure to adhere to other provisions of the ordinance or relevant city codes.

    The city has also implemented measures to target problematic operators managing multiple properties:

    • Portfolio Revocation: An owner or operator accumulating three or more certificate revocations across their entire portfolio within a two-year period may have all their STR registration certificates revoked city-wide.
    • Building-Specific Revocation: Within a single multifamily building, if 25% or more of an owner/operator’s STR certificates are revoked, the city reserves the right to revoke the remaining certificates held by that operator in that specific building.

    To manage complaints and monitor compliance, Houston has contracted with Host Compliance, a service provided by Granicus, indicating an investment in technological solutions for oversight.

    Initial Reactions and Lingering Questions

    The ordinance received public praise from Expedia Group (parent company of Vrbo), which lauded the collaborative process and positioned the outcome as a potential model for other cities. This suggests that at least some segments of the industry see value in clear, albeit potentially strict, regulatory frameworks.

    However, concerns remain. Some operators worry about the breadth of host liability for guest actions and the potential for subjective interpretation of offenses like “disorderly conduct” leading to revocation. Furthermore, despite the unanimous vote, several council members expressed reservations about the city’s practical ability to enforce the new rules effectively, citing historical challenges in responding to complaints even before this comprehensive system was in place. City officials have acknowledged that this ordinance represents a starting point, subject to potential amendments as implementation proceeds and data is gathered.

    Ultimately, Houston’s ordinance represents a concerted local effort to harness the economic benefits of STRs while actively managing their impact on residential communities. Its success will likely hinge on the city’s commitment and capacity for consistent enforcement.

    Stay up to date on the changing STR regulations.

    StaySTRa Insider
    Name
  • Dripping Springs Short Term Market Overview: April 2025

    Dripping Springs Short Term Market Overview: April 2025

    Hello again, it’s Edna Stewart. As a data analyst who has spent nearly four decades looking at market trends, I always find it interesting to explore the stories hidden within the numbers. Today, we’ll turn our attention to Dripping Springs, Texas, another beautiful spot in the Hill Country. Using the latest information from our trusted data partner, StaySTRa.com, let’s see what the short-term rental market looks like there as of April 2025.

    Rapid Growth, Recent Plateau?

    Dripping Springs has seen remarkable growth in its short-term rental scene. Back in April 2014, StaySTRa.com tracked only 4 listings. Think about that! Just four places available. By April 2024, that number had surged to 665 listings. It’s clear that Dripping Springs became a popular place for both visitors and rental hosts. However, the most recent count in January 2025 shows 642 active rentals, a slight dip from the peak. It will be interesting to watch if this leveling-off continues.

    What Rentals Look Like in Dripping Springs

    Similar to nearby areas, the vast majority of rentals here are ‘Entire Place’ options – StaySTRa.com counts 544 of them. This means guests typically get a whole house, cabin, or apartment to themselves. There are far fewer Private Rooms (35 listings) and only a single Hotel Room listed in this dataset.

    What about size? The average rental in Dripping Springs accommodates about 7 people (6.9 guests) and has between 2 and 3 bedrooms (2.6 bedrooms on average). This suggests properties might be slightly larger on average compared to some other Hill Country towns, making them well-suited for families or groups attending events, perhaps like weddings, which Dripping Springs is known for.

    How Often Are Rentals Booked? (Occupancy)

    Occupancy tells us how frequently properties have guests. Over the last twelve months (LTM), the typical (median) ‘Entire Place’ rental in Dripping Springs was booked about 38.7% of the time (LTM Occ: 0.387…). So, for every 10 nights available, just under 4 were booked, on average. This is a bit lower than some neighboring markets.

    Looking at recent months, March 2025 saw occupancy rise to around 48.4% (0.4838…), which is common as weather improves and travel picks up. However, the winter months were slower – January 2025 had a median occupancy of only 25.8% (0.258…), and February was around 30% (0.3…).

    What Does It Cost to Stay? (Average Daily Rate – ADR)

    How much does a night cost? The Average Daily Rate (ADR) gives us that picture. Over the last twelve months, the median ADR for an entire place was $261 (LTM ADR: 261).

    Like occupancy, rates fluctuate. March 2025 saw a median ADR of $264.23. Interestingly, April 2024 had a higher median ADR at $295.60, while rates dipped in late summer/early fall 2024 (around $250-$270). This shows how prices adjust based on demand throughout the year.

    How Much Can Hosts Earn? (Revenue)

    When we combine how often a place is booked (occupancy) with the nightly rate (ADR), we get the monthly revenue. For the past year, the typical (median) monthly revenue for an entire place rental in Dripping Springs was $2,432 (LTM Revenue: 2432).

    Again, seasonality plays a big role. March 2025 brought in median revenue of $3,185.50. But the slower winter months saw significantly lower earnings, like January 2025 with a median of just $1,493. August and September 2024 were also notably low, around $1,840-$1,845.

    Understanding Demand

    StaySTRa.com provides a “Rental Demand” score, which for Dripping Springs is currently 33.21. Compared to other areas we’ve looked at, this score suggests a somewhat lower level of organic rental demand. This aligns with the lower overall occupancy rate we observed. For those wanting to dig deeper into metrics like these, the StaySTRa Analyzer is a great resource. You’ll often find these properties listed on platforms like Airbnb and VRBO.

    Looking Ahead

    The Dripping Springs short-term rental market shows a history of strong growth, though recent data might suggest a potential leveling off in supply. Rentals tend to be slightly larger family- or group-sized homes. While nightly rates are solid, overall occupancy and resulting monthly revenues appear lower than in some nearby Hill Country destinations, with significant seasonal dips, particularly in winter and late summer.

    Considering investing or hosting in Dripping Springs? Understanding these trends is vital. We always recommend connecting with a local real estate professional who knows the nuances of the short-term rental market in this specific area. They can offer tailored guidance.

    Don’t forget to check back with us next month for fresh data and insights on Dripping Springs and other markets!

    Name

    TL;DR Dripping Springs STR Market (April 2025):

    • Growth: Huge increase from just 4 rentals in 2014 to ~650 now, but recent numbers show a slight plateau/dip.
    • Typical Rental: Mostly entire homes, average size fits ~7 people (2-3 bedrooms), slightly larger than some neighbors.
    • Last Year’s Performance (Median):
      • Booked about 39% of the time (Occupancy) – lower than some nearby areas.
      • Average nightly rate was $261 (ADR).
      • Typical monthly earnings were $2,432 (Revenue) – impacted by lower occupancy.
    • Seasonality: Clear busy (Spring) and slow (Winter, late Summer) periods impacting bookings and earnings significantly. Jan 2025 revenue was particularly low ($1493).
    • Data Source: StaySTRa.com

    In short, Dripping Springs has grown fast but might be stabilizing. Rentals are often larger homes, but they get booked less often than in some nearby towns, leading to lower typical monthly revenue despite decent nightly rates. Watch out for the slow seasons!

  • Wimberley Short Term Market Overview: April 2025

    Wimberley Short Term Market Overview: April 2025

    Hello there, I’m Edna Stewart, your guide through the world of short-term rental data. With many years spent looking at numbers and market trends, I find it fascinating to see how places like Wimberley, Texas are growing and changing. Today, let’s take a calm look at what the data tells us about Wimberley’s short-term rental market as of April 2025. All the information we’ll discuss comes directly from our trusted source, StaySTRa.com.

    A Growing Destination

    Wimberley has certainly become more popular over the years for visitors looking for a getaway. Think back to April 2014 – the data shows there were only about 20 short-term rentals listed. Fast forward ten years to April 2024, and that number jumped significantly to 875 listings! As of January 2025, StaySTRa.com tracked 886 active rentals. This tells us that more homeowners are seeing the opportunity to share their properties, and likely, more guests are discovering the charm of Wimberley.

    What Rentals Look Like in Wimberley

    So, what kind of places are available? Most rentals in Wimberley are ‘Entire Place’ listings – 747 of them, to be exact, according to StaySTRa.com. This means guests usually rent the whole house or cabin, not just a room. There are also some Private Room (68 listings) and a few Hotel Room (19 listings) options.

    On average, these rentals can host about 6 people (6.3 accommodates) and typically have 2 or 3 bedrooms (2.4 bedrooms on average). This makes Wimberley a great spot for families or small groups looking for a comfortable stay.

    How Often Are Rentals Booked? (Occupancy)

    Occupancy tells us how often properties are rented out versus sitting empty. Over the last twelve months (LTM), the typical (median) Wimberley rental was booked about 46.2% of the time (LTM Occ: 0.4615…). Think of it like this: for every 10 nights available, a typical rental was occupied for just over 4 and a half nights.

    Looking at recent months, March 2025 saw a higher occupancy rate, with the median property being booked about 58.1% of the time (0.5806…). This makes sense as spring often brings more visitors. January and February 2025 had lower rates, around 29% and 33% respectively, which is common for the post-holiday season.

    What Does It Cost to Stay? (Average Daily Rate – ADR)

    The Average Daily Rate, or ADR, is simply the average price paid per night. For the last twelve months, the median ADR in Wimberley was $251 (LTM ADR: 251).

    Rates do change with the seasons. For example, StaySTRa.com data shows the median ADR for March 2025 was higher at $261.10, while back in January 2025, it was a bit lower at $246.29. This shows that prices adjust based on demand, often higher during peak travel times.

    How Much Can Hosts Earn? (Revenue)

    Putting occupancy and nightly rates together gives us revenue – the amount hosts typically earn per month. Over the last year, the median monthly revenue for an entire place rental was $3,104 (LTM Revenue: 3104).

    Again, this varies month by month. March 2025 was a strong month with median earnings around $4,153, likely due to higher occupancy and rates. In contrast, January 2025 saw median revenue closer to $2,207. Summer months like July 2024 also showed strong earnings, reaching a median of $4,222.

    Understanding Demand

    StaySTRa.com gives Wimberley a “Rental Demand” score of 42.75. While this specific score requires deeper context, it generally suggests a moderate level of demand compared to other markets. Keeping an eye on how this score changes can help understand market dynamics. You can explore detailed metrics like this using tools like the StaySTRa Analyzer. Properties are often listed on popular platforms such as Airbnb and VRBO.

    Looking Ahead

    The data paints a picture of a growing, moderately busy short-term rental market in Wimberley, with clear seasonal patterns in bookings and pricing. The typical rental is a whole house suited for small groups or families.

    Understanding these numbers is key whether you’re a host, an investor, or planning a visit. Remember, markets change, so it’s always good to stay updated.

    Thinking about buying, selling, or optimizing a short-term rental in Wimberley? Market knowledge is crucial. We recommend connecting with a local real estate agent who specializes in vacation rentals. They can provide personalized advice based on your specific goals.

    Be sure to check back with us next month for another update on Wimberley and other markets!

    Talk To A Local Agent
    Name

    LT:DR Wimberley STR Market TL;DR (April 2025):

    • Growth: The number of rentals has boomed, from just 20 in 2014 to nearly 900 today.
    • Typical Rental: Mostly entire homes, averaging 2-3 bedrooms and hosting about 6 guests.
    • Last Year’s Performance (Median):
      • Booked about 46% of the time (Occupancy).
      • Average nightly rate was $251 (ADR).
      • Typical monthly earnings were $3,104 (Revenue).
    • Seasonality Matters: Bookings and rates spike in spring and summer (March 2025 was strong), lower in winter (Jan/Feb 2025 were slower).
    • Data Source: StaySTRa.com

    Basically, Wimberley is a popular, growing market, especially for family-sized rentals, with clear busy and slow seasons impacting how often places are booked and what hosts earn.

  • Maui’s Housing War: Is Banning Vacation Rentals the Cure or Just More Chaos?

    Maui’s Housing War: Is Banning Vacation Rentals the Cure or Just More Chaos?

    Hi everyone, Meredith Lane here, digging into the tough stuff impacting our communities. Right now, all eyes are on Maui. It’s a place known for beauty, but scarred by fire and now facing a huge fight over vacation rentals. Thousands of families are still reeling from the Lahaina disaster, desperate for homes. Mayor Richard Bissen says he has a solution: kick out thousands of short-term rentals (STRs) to make room for locals. But will it work? Or will it just wreck Maui’s economy and leave even more people struggling? Let’s break it down.

    The Plan: Targeting the “Minatoya List”

    So, what’s the actual plan? Mayor Bissen wants to phase out about 7,000 vacation rentals. These aren’t illegal operations; they’re condos, mostly in apartment zones, that got special permission years ago to operate as STRs. People call this the “Minatoya List,” after the lawyer who gave the opinion back in 1992.

    These are places many tourists stay, especially in West Maui (near Lahaina) and South Maui (like Kihei). They are mostly one or two-bedroom condos. Here’s the timeline the Mayor proposed:

    • July 1, 2025: Ban starts for about 2,200 units in West Maui.
    • January 1, 2026: Ban extends to the rest of the Minatoya List condos across Maui.

    The idea is simple: force these condo owners to either rent long-term (180 days or more) to residents, live there themselves, sell, or leave them empty. The goal? Get those units back into the housing pool for locals. But notice, this plan doesn’t touch STRs in hotel zones or permitted B&Bs. It’s laser-focused on this specific group of condos.

    Why Now? A Housing Crisis Meets a Wildfire Tragedy

    This didn’t come out of nowhere. Maui has struggled for decades to house its own people. Land is limited, building is expensive, and for years, more homes were turned into vacation rentals than were built for residents. You needed to earn nearly $200,000 a year just to afford the average rent! Teachers, nurses, hotel workers – the people who make Maui run – couldn’t afford to live there.

    Then came the Lahaina fire in August 2023. It wasn’t just a fire; it was a catastrophe. Lives lost, thousands homeless overnight. The housing crisis became a humanitarian emergency. Suddenly, those vacation condos looked like potential homes for survivors. Groups like Lahaina Strong started demanding action, standing with the Mayor. They argued: these units were meant for residents anyway, let’s take them back.

    And importantly, a state law passed in May 2024 (SB 2919) gave Maui County the clear power to make this kind of move, removing legal roadblocks that stopped earlier attempts. The fire created the urgency, and the state law provided the tool.

    The Million-Dollar Question: Will This Actually House Locals?

    Okay, so the plan is to free up 7,000 units. Sounds great, right? Proponents, like the Mayor, say this is a direct path to more homes and maybe, just maybe, lower prices. One study (from the University of Hawaiʻi Economic Research Organization, or UHERO) suggests condo prices could drop 20% to 40%.

    But hold on. Critics are shouting warnings.

    • No Guarantees: Owners can’t be forced to rent long-term. They could sell – maybe to mainland buyers looking for a cheaper second home, not locals. They could use it themselves part-time. They could just leave it empty. Where’s the guarantee these become homes for fire survivors or local workers?
    • Wrong Kind of Homes? Many of these condos are small studios or one-bedrooms. Are they right for families? Plus, they often have huge monthly HOA fees ($1,000-$1,500 or more!) and are in tourist zones, maybe far from schools or local jobs. Are these really the affordable homes people need?
    • Still Too Expensive? Even if prices drop, add those high HOA fees, property taxes, and mortgage payments. Will working families actually be able to afford them?

    It seems like a big gamble. Will kicking out tourists really create the affordable, suitable homes Maui desperately needs? Or are we just shuffling the deck chairs?

    Economic Tremors: Jobs, Taxes, and Maui’s Lifeline

    Then there’s the economy. Maui runs on tourism. Pulling thousands of rental units offline is like pulling threads from the island’s main fabric. The warnings are stark:

    • UHERO Study: Predicts $900 million less visitor spending each year, about 1,900 jobs lost (maybe double that), and up to $60 million less in county property taxes annually. That’s money needed for fire recovery and basic services.
    • Other Studies: Some paint an even bleaker picture, talking about billions in lost economic activity and over 14,000 jobs gone. They call it an “economic crash and burn.”

    Mayor Bissen pushes back. He says these models don’t capture the “lived experiences” of struggling residents. Calling the ban “pro-resident,” arguing it’s about community balance, not just dollars and cents. Bissen believes Maui depends too much on tourism anyway. But the question hangs heavy: Can Maui afford this, especially now? Who pays the price if thousands lose their jobs – cleaners, landscapers, shop owners, restaurant workers?

    Where Things Stand Now (April 2025): Waiting and Worrying

    Nearly a year after the Mayor announced this plan, Maui is still waiting. The County Council has the final say. They got the bill back in December 2024 and face a deadline: June 18, 2025. They need to vote yes, no, or change the plan.

    But the Council hasn’t even scheduled the big hearing yet, likely waiting until after budget season. They tried to get their own independent economic study done, but couldn’t find anyone to do it. So, they’re relying on reports like UHERO’s and their own staff research.

    Meanwhile, the uncertainty is already hurting. People are calling it a “chilling effect.”

    • Condo sales listings have exploded – nearly four times higher than two years ago! Prices are starting to dip.
    • Some STR owners are selling, cutting rates, or seeing fewer bookings. Businesses that support STRs are feeling the pinch.

    Mayor Bissen is publicly standing firm, saying the focus must be on residents. But there are whispers – unconfirmed rumors, mind you – that maybe he’d consider shrinking the ban to target fewer units, perhaps only those originally meant for workers. We don’t know if that’s true, but it shows how tense things are. Maui is caught in limbo, feeling the economic pain before any potential housing gain.

    The Opposition: Property Rights and Finding Fault

    Who’s fighting this? Lots of people.

    • STR Owners: They say they bought these condos legally, relying on that Minatoya opinion. They argue taking away their right to rent short-term is unfair and possibly illegal – a violation of property rights. Lawsuits are almost certain if the ban passes.
    • Tourism & Real Estate Groups: They point to the economic damage and job losses. They also argue it won’t solve the housing crisis because the units aren’t right or owners won’t convert.
    • Some Residents: Polls cited by opponents suggest many Maui voters prefer cracking down on illegal STRs, not banning legal ones. They worry about the cost of living and homelessness more than vacation rentals.
    • The “Scapegoat” Argument: Many feel STR owners are being blamed for decades of the county failing to plan and build enough affordable housing. Is this ban fixing the real problem, or just pointing fingers?

    Is There Another Way? Ideas on the Table

    Opponents aren’t just saying “no.” Many agree housing is a crisis. They suggest other paths:

    • Tax, Don’t Ban: Hike property taxes way up for STRs. Maybe that pushes some owners to sell or rent long-term, and it brings the county more money, not less. Tax empty homes, too.
    • Go After Illegal Rentals: Focus police power on the rule-breakers, not the legal operators.
    • Build, Build, Build: Cut the red tape that makes building new homes so slow and costly. Give real incentives for affordable projects. Fix infrastructure.
    • Smarter Rules: Maybe cap the number of STRs in certain areas? Make rules stricter? Phase things out much slower?

    Maui’s Crossroads: A Painful Choice

    Here’s the bottom line: Maui is facing a heartbreaking choice with no easy answers. The need for housing, especially after the fire, is real and urgent. People are suffering. But the risk of crippling the economy that supports so many families is also terrifyingly real.

    Will the ban work as intended? Can Maui afford the potential fallout? Are there better ways to help families find homes without causing an economic meltdown?

    The County Council has a heavy burden. Their decision by June 18th will echo for years. Whatever they choose, legal fights are likely, and the deep problems of housing and tourism won’t disappear overnight. This isn’t just about condos; it’s about Maui’s future, its people, and its soul. We’ll be watching closely. Stay tuned.

    Other Cities that are trying to Ban Short Term Rentals.

    Dallas, TX