Research Reports

This report investigates the economic impacts of short-term rentals (STRs) in Pennsylvania in 2023 to analyze their effects on local housing availability and affordability across 20 municipalities in both urban and rural counties. The study employs Geographic Information System (GIS) mapping and statistical correlation methods to assess housing affordability and qualitative content analysis (QCA) to gauge public sentiment regarding STRs. Data were gathered from AirDNA, Zillow, the Pennsylvania State Tax Equalization Board, and local tourism agencies to provide a comprehensive overview of the STR landscape. Results indicate that Pennsylvania's STR market generated approximately $856.7 million in total revenue from 53,810 active listings. Although urban areas like Philadelphia and Allegheny counties had more active STRs, they had lower average daily rates (ADRs) compared to rural counties. Despite the substantial revenue generated, most STRs were only available for limited periods, with an average occupancy rate of 33 percent, raising concerns about their impact on local housing markets. The analysis revealed a complex relationship between STR prevalence and property values. Some municipalities experienced a positive correlation between the number of STRs and housing prices, while urban rents rose along with STR rents, suggesting the possibility of affordability challenges in some locales. Overall, the findings underscore the need for tailored regulations to balance the economic benefits of STRs with housing stability and community needs.

This project provides an in-depth inventory of short-term rentals (STRs) in Pennsylvania, using AirDNA data from 2008−2023, and mapped STR locations in a Geographic Information System (GIS). The growth of STRs in Pennsylvania has been remarkable, beginning modestly in 2008 and expanding rapidly over the next 15 years. What started with just a handful of properties grew into a substantial market by 2023, with 53,810 active listings across all 67 counties. The STR market's evolution reflects broader trends in the sharing economy, with properties ranging from luxury apartments to unique accommodations like yurts and houseboats. The financial performance of these rentals also saw significant growth, with total revenue reaching $856.7 million in 2023. This growth highlights the increasing importance of STRs within Pennsylvania's tourism and housing markets, as well as their diverse appeal across both urban and rural areas. This project examines the distribution of STRs across Pennsylvania historically at the statewide level and analyzes 20 municipalities for housing characteristics, occupancy rates, economics, maximum guests, and bedrooms to gain insights into potential housing issues. The analysis shows how urban areas like Harrisburg, Erie, and Allentown leverage their economic bases and historical significance to attract STRs. In contrast, rural areas like Gettysburg, Jim Thorpe, and State College see growth driven by tourism linked to historical sites, natural beauty, and educational institutions. The research highlights disparities in Average Daily Rates (ADR) and occupancy rates between urban and rural areas, emphasizing the need for tailored policies for each. As STRs grow in popularity, this study offers a foundation for municipalities to manage and regulate this sector, ensuring positive contributions to local economies and community well-being.