AUSTIN - Who’s ready to build a new 1,000-room hotel to serve Austin?
That’s roughly what it would take to make up for the capacity that will eventually disappear once Austin’s ban on so-called Type 2 short-term rentals takes effect in 2022.
Short-term rentals are the class of vacation rentals in otherwise residential housing made popular by Web-based services such as Austin-based HomeAway Inc. and San Francisco-based Airbnb Inc.
In Austin, generally speaking, Type 2 STRs are single-family short-term rental houses that are not occupied by their primary owners or managers.
City Council recently voted to remove the expiration date for a moratorium on the issuance of new Type 2 STR permits and completely ban such short-term rentals after 2022.
There are now 400 licensed Type 2 STRs in Austin. Consider that the average short-term vacation rental home hosts 2.7 guests. If on one rare night every single Type 2 STR in Austin held the average number of guests, they would host a total of 1,080 people.
In other words, Type 2 STRs are collectively the third-largest hotel in Austin.
So, where is all this soon-to-be lost capacity located? Check the maps below this article that show the location of every licensed Type 2 STR in Austin.
In addition to representing future lost hospitality capacity, these non-owner-occupied properties could see market pressure to trade hands if their source of revenue dries up.