Do Airbnb’s Make Good Neighbors?

Short-term rentals used to be reserved for destination locations. Now they can be found in almost every neighborhood in every major city including Charlotte. From Airbnb to VRBO to Zillow, it’s undeniable that short-term rentals have become a major player in real estate. But how do neighbors feel about that evolution?

According to a new study by Anytime Estimate, the “Airbnb effect” has unquestionably changed how the average American views property ownership, community, and neighborhood value.

Pricing Perception

Almost half of the people surveyed (46%) believe that short-term rentals will have a negative impact on their neighborhood’s housing market in the next 5 to 10 years citing, among other factors, that STRs are driving up home prices and hurting first-time homebuyers ability to get onto the property ladder. Additionally, 38% say they believe that short-term rentals are contributing to overall housing shortages being seen across multiple areas of the U.S. In contrast, only 23% said they can foresee a positive impact on having short-term rentals nearby.

Neighbor Sentiment

Only 40% of Americans think Airbnbs make good neighbors and just 30% believe short-term guests care about the neighborhood’s well-being. Respondents say they would be concerned (44%) and annoyed (29%) if they learned their neighbor was operating an Airbnb. Why? Roughly 40% believe it would decrease the quality of life for local full-time residents, more than 4x the number who say it would improve their quality of life (9%). Only 16% would feel positive about their next-door neighbor turning their home into a STR.

Home Search Considerations

Homebuyers are also now factoring nearby short-term rentals into their home search criteria like they would school districts or the age of the roof. 60% of prospective buyers say having an Airbnb close by would impact their purchasing decision with 28% saying they would offer less for the home and 32% saying it would stop them from submitting an offer all together. Buyers say the are thinking about noise, parking, and safety as there is a perception that people who are “just passing through” are generally less concerned about their impact on neighbors.

Those surveyed even went as far to say as they would rather live next door to their in-laws (55%) or their ex (30%) compared to a short-term rental.

Economic Impact

Short-term rentals are a real estate reality and far from a black-and-white issue. It is a nuanced topic and, based on the data from Anytime Estimate’s report, have a long way to go in overcoming current perceptions. However, a solid majority of people (59%) do see that Airbnbs can be good for the local economy. Nearly two-thirds (64%) see them as a potential source for much-needed government revenue.

Overall, people favor more rules and restrictions for short-term rentals, such as requiring a business license for hosts (82%) and requiring renters to pass a background check (78%). Many respondents see Airbnbs in the same vein as hotels and 83% believe that STRs should be subject to similar rules, taxation, and policies like inspections and safety standards. And Americans overwhelming support support at least some form of local STR regulation (94%) such as noise restrictions and guest caps.

What is your stance on short-term rentals? We would love to hear your thoughts. Leave a comment below.