St. George, Utah. Photo by DenisTangneyJr via iStockphoto
Proponents of supply-side solutions to housing typically refer to high housing vacancy rates as a good thing. In theory, more vacant apartments mean more options for renters and competition between landlords for renters. But a look at vacancy rates across the country reveal a more confusing picture: The rate does not track closely with overall affordability.
There are a few reasons for this, but one of the most alarming is the trend of short-term rentals. Since they emerged in the mid-1990s and were supercharged in the 2010s, it’s become common for homeowners who have a little bit of extra money to buy a second home as an investment so they can make “passive” income. In some cases, single owners have sprouted mini-empires of entire apartments being rented out on these services. Units being rented out short-term are listed as vacant in census surveys, but they are not available to renters—at least, not for anyone but tourists.
These units pock the landscape of large, coastal cities and persist despite drawing down regulatory hammers. But in some towns, vacation homes and Airbnbs have been given free rein to transform the landscape more fully, crowding working people to the margins.
In his book Homesick, Brendan O’Brien looks at the intersecting issues of second homes, investment properties and short-term rental companies like Airbnb, VRBO and Homeaway. Specifically, he looks at Flagstaff, Arizona; Bozeman, Montana; and St. George, Utah, where these companies have been allowed to run rampant, hollowing out communities and fraying the social fabric. Arizona even passed a law in 2016 making it illegal to regulate short-term rentals at the local level (the restrictions were loosened somewhat in 2022). The following interview has been abridged and edited for clarity.
Roshan Abraham: When did you first notice that short-term rentals were a problem?
Brendan O’Brien
Brendan O’Brien: I first noticed that when I stayed in a short-term rental on a trip to New Orleans. I stayed with several friends; we thought we’d save some money and be in more of a home environment, not in a hotel. This was in 2017.
On that street, there was a sign that said “Neighbors not Airbnbs.” It touched off something in my mind where I started thinking about the potential impact, bec …
