Highlighted News Stories from September 2023.

Homeowners are considering short-term rentals despite crackdowns.

Financial factors and interest rates drive this trend. According to a Realtor.com and CensusWide survey of 2,000 homeowners in July 2023, 60% would opt for short-term rentals instead of selling when moving elsewhere. About 23% have already or plan to rent out their homes, while an additional 16% are considering it. With 30-year mortgage rates exceeding 7%, homeowners are hesitant to sell. Short-term rentals offer extra income and a way to keep their homes if they move. Realtor.com introduced a tool for estimating short-term rental income from Airbnb. However, cities like New York are tightening short-term rental laws, potentially limiting Airbnb listings by 70%. Other cities have their own restrictions. Financial motives drive homeowners to rent rather than sell, with 21% seeking extra income and 19% aiming to preserve equity. Those with low-interest mortgages see renting as a profitable option. Homeowners plan to use the extra income to save for homes with higher mortgage rates, prepare for potential adjustable-rate mortgage increases, or cover their current mortgages.

Note: Parts of this post were written using ChatGPT, with details gathered from NAR REALTOR® Magazine.