Rise of rentals

Dallas unlocks one of the highest rates of Airbnb growth in the U.S.

Dallas unlocks one of the highest rates of Airbnb growth in the U.S.

Airbnb, Dallas, Deep Ellum loft
This urban warehouse loft in Deep Ellum is listed on Airbnb. Photo courtesy of Airbnb

The number of Airbnb listings in Dallas is ballooning, a new study shows.

The study, released October 22 by real estate platform IPX1031, ranks Dallas fifth among major cities for growth in Airbnb listings since 2017 (95.2 percent ). One notch higher, at No. 4, is Fort Worth (101.5 percent). Eighth-place San Antonio (76.9 percent) joins Fort Worth and Dallas in the top 10 for Airbnb growth.

At 120.4 percent, Charlotte, North Carolina, tops the growth list.

An estimated 2,000 to 3,000 short-term rental properties operate in Dallas. Short-term rental properties in Dallas must pay hotel occupancy taxes but otherwise aren’t regulated.

An estimated 1,100 properties in nearby Fort Worth are marketed as short-term rentals. The City of Fort Worth allows short-term rentals everywhere but in residential areas. In September, the Fort Worth City Council directed city staff to study ways to regulate short-term rentals, including those posted on Airbnb.

Earlier this year, IPX1031 ranked Fort Worth as the 12th best place in the U.S. to invest in an Airbnb property.

At the other end of the spectrum in the new IPX1031 study, Austin ranks fifth among major cities for the least amount of growth in Airbnb listings since 2017 (7.19 percent). San Francisco leads this list, with a 16.6 percent decrease in Airbnb listings.

Restrictions on short-term rentals may be causing some cities to see limited or negative Airbnb growth, IPX1031 notes. Both Austin and San Antonio regulate short-term rental properties. Austin’s regulations regarding short-term rentals are considered among the strictest in Texas. San Antonio started regulating short-term rentals in November 2018.

“The rapid expansion of short-term rental platforms has spurred many cities to adopt new regulations to mitigate the loss of long-term rental units and to address more localized concerns such as the increase in transient residents and local spillover effects,” Ingrid Gould Ellen, faculty director of New York University’s Furman Center, told Urban Land magazine. “The responses run the gamut from outright bans, to caps on the number of units or nights, to an array of taxes and fees.”

For its study, IPX1031 analyzed Airbnb listing data from more than 350 U.S. cities. The data came from AirDNA, an analytics database for short-term rentals.