Targeting short-term rentals From the cover
What’s being done
Mapping it out
After a public comment session in March where nearly 40 residents had complaints on STRs, City Council members Sallie Alcorn and Amy Peck requested the administration evaluate the feasibility of registering or permitting STRs in Houston. By April, the Administration and Regulatory A airs Department started to gather data and facts to develop potential regulations. Julian Ramirez, Quality of Life Committee chair and an at-large council member, said regulations could require STR owners to register their properties with the city. “Hosts will be required to keep the registration current, and will have to pay insurance and a fee of some kind,” he said. “If they fail to do any of these things, there will be a penalty between $100-$500 for each violation.” Ramirez said there could also be provisions under which a registration can be revoked, including: • If false information was provided in the application • If important changes were not reported to the city • If there are two or more instances when the city had to lessen a nuisance • If there are two or more citations that resulted in two or more convictions for violations • If someone who is staying at an STR or the owner was convicted of a listed criminal o ense Once a registration is revoked, Ramirez said the city will go to the platform where the rental was listed, such as Airbnb or VRBO, and have the property delisted. The proposed regulations need to be approved by Houston City Council before moving forward and are subject to change.
“It’s not incredibly shocking or dramatic growth over the last ve years, but it’s strong year-over year-growth,” Gallagher said. However, while he said listings have not increased signi cantly, the revenue has tripled in the last ve years. In October 2019, 1,660 listings brought in about $1.8 million in revenue with an average occupancy rate of 59%, which is the percentage of available space that is being used. In 2024, the 2,028 available listings accumulated $4.8 million with a lower occupancy rate of 54%. Gallagher said the increase is due to a rise in rates. In the ve ZIP code areas, the average daily rate is $198.53 per night.
Bram Gallagher, director of economics and forecasting at AirDNA, a software company that analyzes short-term rental data, said Houston markets have experienced a steady rise in STRs over the past ve years. In the Heights, River Oaks and Montrose areas, there were approximately 2,028 listings as of October. In October 2019, there were 1,660 listings—re ecting a 22% increase. The most concentrated number of homes rented out were in the 77006 ZIP code along Montrose Boulevard and Westheimer Road. The most rented units contain one or two bedrooms.
Number of short-term rentals
October 2019
October 2024
77006
Short-term rentals are accommodations that are available to rent for 30 days or less, according to the city of Houston.
506
+56.52%
792
610
77007
505
77008
+3.56%
523
45
77008
292 294
10
-0.68%
77007
223 77019
59
77019
+21.97%
272
77006
149 132 77098
77098
288
59
+12.88%
N
SOURCE: AIRDNA COMMUNITY IMPACT
In comparison
Austin
Arlington
Houston
Owners of short-term rentals are required to obtain an operating license annually. Homes can only be rented for less than 30 consecutive days, and the entire unit has to be rented out. Properties cannot be part of a multifamily use. Austin originally adopted rules in 2016 governing short-term rentals. However, federal courts ruled in 2023 that the city’s rules were unlawful.
Hosts would have to register their properties with the city and pay a fee to obtain a short-term rental permit. Owners would need to keep their registration current, have insurance and report any major changes to the city. They would be subject to a ne or penalty for violations. Houston does not have speci c laws that regulate short-term rentals, but o cials are looking to change that. Potential regulations include:
Arlington City Council passed an ordinance regulating short-term rentals in April 2019.
Short-term rentals are only permitted in certain zones, mostly near the entertainment district. Hosts and property owners must obtain a valid short-term rental permit from the city and pass a safety inspection of the property.
SOURCES: CITIES OF HOUSTON, AUSTIN, ARLINGTON COMMUNITY IMPACT
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