Do STRs Hurt Housing Affordability in Texas?

TL;DR

Short-term rentals are often blamed for rising housing costs, but research shows they are not a primary driver of affordability. In most markets, even major crackdowns on STRs produce only small changes in rent and home prices. The biggest drivers of housing costs are zoning, supply constraints, and development barriers.

The Question Everyone Is Asking

Are short-term rentals taking homes off the market and driving up prices?

It is one of the most common concerns raised by neighbors, policymakers, and media. It also feels intuitive. If homes are used for guests, they are not available for long-term residents.

But when you look at the data across multiple markets over time, the answer becomes more nuanced.

Do STRs hurt housing affordability? What the Research Actually Shows

Early studies during Airbnb’s rapid growth from about 2012 to 2016 did show a measurable relationship between short-term rentals and housing prices.

One widely cited finding suggested that a 1 percent increase in Airbnb listings was associated with about a 0.02 percent increase in rents and home prices. That data point has been repeated often. What is less often discussed is what happened next.

As markets matured and more data became available, the impact of additional STR listings declined significantly. The strongest effects appeared during the early adoption phase, when supply was already tight and STRs were new to the market.

Over time, that relationship weakened and became highly localized.

What Happens When Cities Crack Down

If short-term rentals were a major driver of housing affordability, removing them should create noticeable relief.

In reality, the results have been modest.

Studies of cities that reduced STR listings by about 50 percent found that rents and home prices dropped by roughly 2 percent. That is not nothing, but it is small relative to the scale of the restrictions.

In many cases, even deeper cuts produced limited results.

In New York City, strict enforcement reduced legal STR listings by as much as 80 to 90 percent. Rents continued to rise, and vacancy rates remained extremely low.

In South Lake Tahoe, a near-total ban did not lead to meaningful housing relief. Many former STR properties became second homes rather than long-term rentals.

These real-world outcomes point to a consistent pattern. Removing STR supply does not solve broader housing shortages.

Localized Impact Versus Systemic Drivers

Short-term rentals can have an impact in very specific areas.

Historic districts, tourist-heavy neighborhoods, and highly desirable locations with limited housing supply can feel pressure. In those micro-markets, STR activity can influence availability and pricing.

But those effects do not scale across entire cities or regions.

The larger drivers of housing affordability are well established:

• Restrictive zoning

• Limits on density

• Lengthy permitting processes

• Development costs and fees

• Regulatory barriers to new construction
  

These factors affect every housing unit in a market, not just a small subset used for short-term stays.

How Big Is the STR Footprint in San Antonio?

To understand impact, it helps to look at scale.

San Antonio has roughly 4,800 to 5,700 active short-term rentals, compared to more than 700,000 housing units citywide. That means short-term rentals represent well under 1 percent of the total housing stock.

Even accounting for unpermitted listings, STRs remain a very small portion of the overall housing market.

This matters because housing affordability is driven by supply and demand across the entire market. When a category represents less than one percent of total housing, it is unlikely to be a primary driver of citywide housing costs.

Even eliminating every short-term rental in San Antonio would return less than one percent of housing supply to the market, while leaving the underlying affordability challenges largely unchanged.

Why STRs Are Still the Focus

If short-term rentals are not the primary driver, why do they receive so much attention?

Because they are visible and easier to regulate.

Changing zoning laws or increasing housing supply is complex and politically difficult. Restricting STRs is more straightforward and can be framed as immediate action.

The result is policy that often addresses symptoms rather than root causes.

What This Means for Texas and San Antonio

Texas is not immune to housing pressure, especially in fast-growing cities such as San Antonio and Austin. But the same pattern holds.

Short-term rentals are a small part of the overall housing ecosystem. Most are owned by individuals with one or two properties, and many are not suitable for long-term housing due to size, layout, or seasonal use.

At the same time, Texas faces real challenges around housing supply, growth, and infrastructure.

Focusing solely on short-term rentals risks missing the bigger picture.

A Balanced Approach

This does not mean short-term rentals should be unregulated. It does mean regulation should be grounded in data and focused on real impacts. Responsible hosting, clear rules, and local accountability matter. So does maintaining a realistic understanding of what drives housing affordability.

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