Stowe Vermont is an internationally recognized tourist destination and has the highest number of monthly short term rental listings of all municipalities in Vermont. The town leadership wanted to know how STRs were impacting the local economy. Are short-term rentals taking long-term housing opportunities away from workforce households? Or do they produce jobs and give local entrepreneurs new business opportunities by providing flexible, alternative visitor accommodation? Do STRs encourage real-estate speculation and increase property valuations, or do they provide additional income to homeowners to help pay down rising housing costs? Do they support a sustainable tourism economy by increasing foot traffic for local businesses or do they damage community character? The answer is both yes and no. The national debate about short-term rentals generates plenty of talking points for both sides of the argument but fails to provide real solutions. This is because all real estate markets are local and what really matters is the degree to which these metrics are true locally. Crane Associates was hired by the Town of Stowe to develop a data-driven analysis of the economic impacts of STRs in town. The analysis included: creating a factual database of real estate transactions, STR revenue, nights booked, STR inventory by unit type, size, ownership category, and homestead status; a statewide statistical comparative analysis; economic analysis on the incentives to own STRs in Stowe that includes real estate cap rates, commercial valuations, ROI, and other investor metrics; competitivity analysis to local hotels that compares occupancy rates, RevPAR, and demand by accommodation type; environmental and social impacts including water and electricity usage, vehicle trip generations and demand for emergency services. The analysis is being used to create reasonable mitigation and policy regulations. To view the Report's Table of Contents, please click the file link below
