Real estate
As the popularity of short-term rentals such as Airbnb and VRBO continues to grow, cities such as Shenandoah and Oak Ridge North are joining The Woodlands Township in seeking to regulate them to address noise and trac complaints. According to 2024 data from AirDNA, a company which tracks short-term rental metrics nationwide, the industry in North Houston brings in an average of $1.27 million in total monthly revenue for owners. But it can also exert pressure on the housing market by reducing the number of homes available to sell, experts said. “People are bidding up [home] prices in The Woodlands,” said Adam Perdue, a real estate economist with housing market research company Zonda. Bram Gallagher, director of economics and forecasting at AirDNA, said the North Houston area has seen the steadiest growth in short-term rentals over the last ve years compared to the rest of the Houston region. Straying from short-term rentals
Number of short-term rentals per ZIP code: Short-term rental growth
2018
As of June 2024
77384
77385
15
32
+19
+47
34
79
2978
1488
45
242
WOODLANDS PKWY.
77386
77382
29
23
+107
+23
136
46
77381
99 TOLL
24
+52
76
77389
77380
82
34
+17
+41
51
123
N
SOURCE: AIRDNACOMMUNITY IMPACT
The impact
Why now?
Perdue said the growth of short-term rentals has also started to aect the overall housing market by encouraging homeowners to put their properties for rent. “It becomes worthwhile for people to build extra homes to rent them out instead of [putting] them up for sale,” Perdue said. Short-term rentals in the region fell in 2021, but recovered quickly, according to AirDNA data.
passage of ordinances and nes, although the DSC can enact certain controls. However, both Shenandoah and Oak Ridge North have dis- cussed measures to allow for nes ranging from $500 to $2,000 for violations of their short-term rental policies. The city of Shenandoah had not yet approved an ordinance as of press time July 15.
The Woodlands Township’s short-term rental regulations are overseen by the Development Standards Committee and were established in late 2019. The cities of Oak Ridge North and Shenandoah did not have regulations in place prior to 2024. Township ocials said the enabling legisla- tion for The Woodlands does not allow for the
Short-term rental regulations The regulations in place vary slightly by each jurisdiction.
North Houston rental growth
Regulations
Violations
600
The Woodlands Township (adopted in 2019)
• STR owners must apply on a yearly basis • $500 yearly compliance fee • All parking must be on property or in garage
Violation result in revocation of yearly permit
400
Shenandoah (proposed)
• Requires a permit from the city to operate
$2,000 ne maximum for violations
200
Oak Ridge North (adopted June 24)
• STR owners must notify city for tax collection purposes • Two people per bedroom, four cars per homesite • At least one camera onsite
$500 ne for violations
0
SOURCES: OAK RIDGE NORTH, SHENANDOAH, THE WOODLANDS TOWNSHIPCOMMUNITY IMPACT
SOURCE: AIRDNACOMMUNITY IMPACT
36
COMMUNITYIMPACT.COM
Powered by FlippingBook