A new study by the Western Mountain Resort Alliance highlights the positive role of short-term rentals in Colorado’s mountain communities.
The study by RRC Associates and Inntopia found that short-term rentals in Summit County generate significant economic and social contributions, support small businesses, offer diverse accommodation options, and are unlikely to cause significantly increased housing prices.
“This study confirms that short-term rentals play a valuable role in sustaining our mountain communities,” said Western Mountain Resort Alliance president Scott Blackwood.
“We remain committed to working with stakeholders to ensure responsible growth and a vibrant tourism industry that benefits everyone.”
The number of active short-term rentals in Summit County has remained steady since January 2018.
Most rentals are in multi-family units and owned by second homeowners from Colorado, with only 10% owned by local investors. Front Range residents own 46%, out-of-state residents own 42%, and other Colorado and international residents own 2%.
Occupancy rates for single-family units are slightly higher than multi-family units and command a higher rate, twice the rate of multi-family units on average. The majority, 98%, are entire homes.
Economic impact
In 2022, short-term rentals generated $1.7 billion in visitor spending, which supported nearly 7,693 jobs and generated $103 million in local and state tax revenue.
Overnight visitors staying in short-term rentals supported 28% of Summit County’s total jobs.
Short-term rental guests spent an average of $607 per stay on lodging, restaurants, shops, and activities.
Short-term rentals offer accommodation options that cater to different budgets, group sizes, and travel styles, which draws visitors who might not otherwise visit Summit County.
The study determined short-term rentals didn’t increase housing prices from 2018 to 2022.
Short-term rentals generate more economic activity and funding for affordable housing than traditional second homes.
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Responsible management
As a result of the study, the resort alliance recommends responsible regulations that balance the benefits of rentals with community concerns and encourage collaborative stakeholder engagement.
Report recommendations include:
Develop regulations using collaborative engagement between property owners, residents, and visitors.
Use comprehensive research and analysis to set policy.
Create a fair and transparent permitting process that’s easy for property owners to navigate.
Focus on responsible management practices to control noise, regulate parking, and vet guests.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.