Short-term rental home growth accelerates dramatically in Utah

Short-term rental (STR) growth accelerated dramatically across the United States as the COVID-19 pandemic shifted consumer behaviors, thus increasing their market demand. A new report from the Kem C. Gardner Policy Institute at the University of Utah summarizes the recent trends in the growth of STRs across Utah. The purpose of the report is to provide state and local leaders with an account of the size of the STR market and how it relates to the total housing supply.

“The number of short-term rentals in Utah steadily increased over the past decade as Airbnb, Booking.com and VRBO platforms became popular,” said Dejan Eskic, senior research fellow at the Gardner Institute. “Overall, STRs account for approximately 1.9 percent of our housing stock in 2023. However, while this number seems relatively low, the rise of short-term rentals in Utah disproportionately impacts the state’s tourism areas, affecting housing affordability and accessibility in these communities.”

Key findings from the report include the following:

Rapid Growth. The average number of monthly STR listings increased by 39.4 percent from 16,803 in 2021 to 23,428 in 2023. At the state level, STR listings account for approximately 1.9 percent of all residential units. While this figure is relatively low, it continues to rise.

County Focus. Over 60 percent of all STR listings in Utah are in three counties: Summit County, Salt Lake County and Washington County. In 2023, Summit County averaged 6,443 STR listings per month, Salt Lake County 4,869, and Washington County 3,128 listings.

Concentration. Summit County leads the state with STRs as a share of total housing units with approximately 23.8 percent of the total housing listed as STRs. Grand County’s STRs account for 18.7 percent of the housing stock, while Salt Lake County STR listings total 1.1 percent of the county’s housing units.

Housing Loss. Heavy tourism counties like Summit and Grand are losing existing housing to STRs. Between 2022 and 2023, there was an increase of 14.2 new STR listings in Summit County for every 10 new residential units added. In Grand County, there were 10.3 new STR listings for every 10 new residential units added.

National Parks and Ski Areas. Tourism is a major driver of the growth and concentration of STRs. In 2023, 83.1 percent of STRs were located within 10 miles of a state park, national park or national monument. Additionally, 24.9 percent were located within a quarter-mile of a ski resort and nearly half of all listings were within 10 miles of a ski area.

Neighborhood. At a neighborhood level, STRs tend to be in areas with higher housing prices and household incomes, higher rates of homeownership and a higher number of single-family homes.

The full STR report is accessible through the Gardner Institute website.