Study Shows Short-Term Rentals Have Little Effect on Cost of Homes

9News recently reported on a study conducted by Denver’s Economic Development department showing that short-term rentals, such as AirBNB, have little impact on the cost of homes. Short-term rentals make up about 1% (306,714 units) in Denver.

According to the report, “Short term rentals in Denver do not appear to have an impact on housing costs at the citywide level. A geographic concentration of short-term rentals is moderately positively correlated with increased home values, but not increased rents,” Analyst Katherine O’Connor wrote in the report.

A Denver law stipulates that a homeowner must be licensed in order to offer short-term rentals (30 days or less), and that the home must be the homeowner’s primary residence. The study found that the “primary residence rule” has helped lessen the impact short-term rentals have on the city’s housing market.

“It does not allow people to buy up additional units, a bungalow next door or a condo across town. It doesn’t allow companies to come in and buy multiple units and start short-term renting them,” Ashley Kilroy, executive director of the Excise and Licenses department, said of the rule.