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The Impact of Short-Term Rentals on Small Towns

The Impact of Short-Term Rentals on Small Towns

In recent years, the proliferation of short-term rental properties, such as those listed on Airbnb and VRBO, has significantly impacted small towns, both positive and negative. While these rentals can boost the local economy and an additional source of income for homeowners, they can also lead to a decrease in available housing for local residents and strain on local infrastructure. To balance the needs of local residents and tourists, communities can implement regulations and create affordable housing programs and establish a community land trust to protect affordable housing in the community.

Balancing Local Housing Needs with Tourism in Borrego Springs

Borrego Springs, like many small towns, has a limited housing supply. This means that the conversion of homes and apartments into short-term rentals can significantly impact the availability of housing for local residents. As more properties are used for tourism, the number of long-term rentals decreases, making it harder for residents to find affordable and available housing. This can lead to rising housing prices, which can be especially problematic for low-income and marginalized communities. 

Moreover, the influx of tourists can also strain local infrastructure, such as public services, roads, water, and sewage systems. This can negatively impact the quality of life for residents and create additional costs for the community.

The limited housing supply in Borrego Springs makes it especially vulnerable to the negative impacts of short-term rentals. Without adequate regulations and solutions, the town risks losing its long-term residents and becoming a primarily tourist-driven community. This can have a detrimental impact on the community’s culture, economy, and overall well-being.

Negative Impacts of Short-Term Rentals

Short-term rental properties, such as those listed on platforms like Airbnb and VRBO, can significantly impact small towns. One of the most significant negative impacts is the reduction of available housing for local residents. As more and more homes and apartments are converted into short-term rentals, the supply of long-term rentals decreases, making it harder for residents to find affordable housing. This can lead to a rise in housing prices and result in displacing low-income and marginalized communities.

Another negative impact of short-term rentals is the strain they can put on local infrastructure. In small towns, the influx of tourists can strain public services like roads, water, and sewage systems. Additionally, short-term rentals can increase noise and traffic, which can negatively impact the quality of life for residents.

Positive Impacts of Short-Term Rentals

Despite these negative impacts, short-term rentals can also positively affect small towns. For one, they can boost the local economy by bringing in tourists who spend money on food, shopping, and other activities. Additionally, short-term rentals can provide an additional source of income for homeowners, which can be especially beneficial in areas with a high cost of living.

Solutions for the Community

To mitigate the negative impacts of short-term rentals and ensure that local housing needs are met, communities can take several steps. One solution is to implement regulations that limit the number of short-term rental properties or require landlords to have a certain number of long-term rentals. Additionally, communities can create affordable housing programs to ensure that low-income residents can access safe and affordable housing.

Another solution is to establish a community land trust to protect affordable housing in the community. This is a nonprofit organization that acquires and holds land, and then leases it to renters, homeowners, or developers. This can help preserve affordable housing and prevent developers from buying up land to build expensive homes or short-term rentals.