Association study shows STRs generate $1.19 billion in visitor spending and $181 million in tax revenue; little effect on housing affordability
A new report released today by the Utah Taxpayers Association highlights the significant economic benefits short-term rentals (STRs), bring to Utahns and their communities. The research found that STRs are a notable driver of tourism, tax revenue, and jobs, while their impact on statewide housing affordability and supply is negligible.
“Short-term rentals are often framed as having an outsized impact on housing supply while only benefiting the relatively few Utahns who own them,” said Billy Hesterman, president of the Utah Taxpayers Association. “This couldn’t be further from the truth; the report shows that short-term rentals benefit small businesses, contribute to local economies, and generate needed tax revenue. As Utah grows, it’s important that our elected officials understand the role short-term rentals can play in boosting communities across the state.”
The study found that STR guests in Utah generated:
- $1.19 billion in direct visitor spending in 2023
- 10,200 jobs across the state.
- $35.8 million in usage taxes, accounting for more than a third of statewide collections for hotel and other temporary room rentals.
- $181 million in property tax revenue last year
Do STRs negatively impact housing prices?
Their economic importance aside, the report also aimed to understand the impact of STR properties on the supply side of Utah’s housing market, which has been strained for many years. To do so, it tested a scenario: what if Utah STRs were converted into traditional, residential housing?
“We wanted to evaluate what would happen if all of the current STR stock became available, residential housing,” said Hesterman. “This helps us understand what’s at stake and whether or not STRs are a major driver of supply-side availability and affordability.”
The report found that even if all of Utah’s year-round STR properties, which represent only 1.9% of Utah’s housing supply, were to move to the residential market tomorrow, the statewide median home price would drop by just 0.4%. This is a difference of around $2,000 on a $500,000 home. More importantly, fewer than a thousand STRs would be affordable for families earning around the average income in their area. This means that converting STRs residential properties would not meaningfully help first-time buyers or ease the housing crunch.
“This research makes it clear,” said Hesterman. “Eliminating STRs would do almost nothing to solve Utah’s housing challenges, but eliminating their significant benefits to tourism and small business-based economies would create revenue shortfalls and other problems for communities across the state.”
The majority of Utah’s STRs are located in Summit, Salt Lake, and Washington counties, which together account for nearly two-thirds of all listings. In places like Summit County, STR spending represents nearly 39% of all visitor spending, providing fuel for local businesses and services.
The analysis draws on data from AirDNA, the U.S. Census Bureau, and UtahRealEstate.com to estimate how many homes statewide are used as short-term rentals and what impact converting them to for-sale housing could have. Using multi-year housing and sales data, the report modeled supply, affordability, and tax effects across counties, including property- and room-tax data from state sources. The full report is available online.
