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.