Study indicates expanding short-term rentals could negatively impact Montana
BOZEMAN, Mont. — Short-term rentals are booming in Montana.
“The popularity of it is growing,” said Jeremy Sage, the interim director at the Institute for Tourism and Recreation Research at University of Montana.
A new study from the University of Montana shows the number of nights booked in short-term rentals jumped 33 times from 2015 to 2020.
According to the study, short-term rentals are usually private accommodations travelers book online through sites like AirBnB and VRBO for less than a 30-day stay.
In September 2020, researchers logged over 12,000 active short-term rentals in Montana, with Flathead and Gallatin counties showing the highest numbers, at 2,814 and 2,524.
“Folks are telling us, you know, the cleanliness, the safety, the location, the utility of having a kitchen and the comfort that's afforded them with those kinds of more homey type feels to them,” said Sage.
The study’s results show positive impacts of these rentals include increased financial well-being for hosts and more vacation rental opportunities for the guests.
However, in some locations, rentals appear to limit housing availability and contribute to increased rent and housing costs.
Sage says some towns and counties don’t regulate short-term rentals, which means the state could lose tax revenue.
There’s also a concern people could buy properties specifically for renting to tourists, making buying options even more scarce.
In Bozeman, they’ve had regulations in place since 2017. Those include required registration for properties, occupancy limits and standard safety inspections.
“There's concern within some communities that the volume of short-term rentals is really distorting the housing market or the rental market,” Sage said.
Going forward, Sage says it’s all about how counties work with this growing trend.
