How many Airbnbs is too many?

I'm taking a personal day tomorrow to say goodbye to our ailing cat. In lieu of condolences, please keep sending me ideas for podcast guests!

City Council is scheduled to vote this week on new regulations for short-term rentals (Airbnb, Vrbo etc). The proposal put forward by city staff would limit STRs to 25% of units within a multifamily building, but today Council Member Mike Siegel argues for capping the number at either one unit or 3%, whichever is greater.

(I delved into the proposed ordinance more recently)

"The rationale for this amendment is to prevent displacement of renters at multifamily properties," he wrote on the Council message board. "In particular, my concern, shared by advocates for Austin tenants, is that proliferation of STRs at multifamily properties will lead to rising rents and increased economic pressure on working Austinites."

I don't have particularly strong feelings about this, but let's walk through some competing considerations ...

Most research that I've seen on STRs suggests that they indeed have an effect on rents, but that it's very modest and much smaller than other factors, notably regulations that restrict housing supply. And of course, the effects of STRs on the housing market are going to be even greater if you are not building new housing!