City of Austin/Short term rental…going extinct?

400 homes are owned by investors and used by visitors to ATX for short term stays while visiting central Texas.   I am curious how phasing out TYPE 2 short term rentals will repurpose these homes and impact these neighborhoods?

Interesting article today in the Austin Business journal, written by :

Michael Theis Staff writer Austin Business Journal

See the map HERE for view of detail neighborhoods currently with TYPE 2 STR
“Mar 8, 2016, 8:07am CST
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 are
classified as Type 2 STRs.
City Council’s recent decision to remove the expiration date for a moratorium on the
issuance of new Type 2 STR permits will completely ban such short-term rentals by April 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. Only two hotels, the 1,012-room JW Marriott
Austin on Congress Avenue and the 801-room Hilton Austin on East Fourth Street could be expected to have a larger “novacancy”
capacity than Austin’s Type 2 STRs. Assuming that the national average of 1.5 guests per rented hotel room holds
true in Austin, the JW Marriott has a “no-vacancy” capacity of 1,500 guests, while the Hilton Austin has a “no-vacancy”
capacity of 1,200 guests.
So, where is all this soon-to-be lost capacity located? Check the interactive maps embedded 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-owneroccupied
properties could see market pressure to trade hands if their source of revenue dries up. I’ll have more about the
Type 2 STR situation and what it means for the owners of such properties in the March 11 weekly print and digital edition of
ABJ.
The second map, seen in the image above, is a heat map that shows the relative density of Type 2 STRs in Austin.
I was surprised to see how few licensed Type 2 STRs exist in the well-heeled West Austin enclave bordered by MoPac
Expressway to the east, Loop 360 to the west, U.S. 183 to the north and Lake Austin and Town Lake to the south. It’s also
apparent that Hyde Park, near-East Austin and South Austin, areas that have been subject to dramatic rises in home values in
recent years, host notable Type 2 STRs density.”

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