TENNESSEE: AIRBNB’S NEGATIVE IMPACT ON HOUSING
Studies Show Airbnb & Short-Term Rentals Deplete Housing & Raise Rent Pricing
AIRBNBS TAKING OVER NEIGHBORHOODS ACROSS TENNESSEE
Knoxville
Gatlinburg
Sevierville
Pigeon Forge
Memphis
Chattanooga
73% of Airbnbs are
now commercially
operated – up 57%
since 2020 – taking
1,119 homes
off the market.
62% of Airbnbs are
now commercially
operated – up 58%
since 2021 – taking
1,648 homes
off the market.
83% of Airbnbs are
now commercially
operated – up 86%
since 2020 – taking
2,925 homes
off the market.
79% of Airbnbs are
now commercially
operated – up 65%
since 2020 – taking
7,960 homes
off the market
81% of Airbnbs are
now commercially
operated – up 53%
since 2020 – taking
4,622 homes
off the market
These Airbnb hotspots boast a combined total of nearly 20,000 active rentals across Tennessee. The
growing trend of commercial investors buying up residential homes to convert properties into short-
term rentals on Airbnb is harming communities as neighbors are replaced with a revolving door of
strangers. Through the proliferation of short-term rentals in communities and popular vacation
destinations across Tennessee, commercial Airbnb operators are increasing the cost to rent or buy a
home by taking large swaths of potential housing off the market for local residents.
TENNESSEE: Short-term rentals have a reputation of bringing
violence and destroying the peace and quiet in our communities.
Violence, reckless behavior, out-of-control parties, and robberies are threatening safety throughout Tennessee.
AIRBNBS IMPACTING NEIGHBORHOODS ACROSS TENNESSEE
Nashville: Neighbors Concerned With East
Nashville Short-Term Rental After Shooting At
Halloween Party
“A Halloween party turned into chaos in East Nashville
after gunshots rang out, sending a 14-year-old to the
hospital with non-life-threatening injuries.” (
WKRN
,
11/1/22)
Pigeon Forge: Pigeon Forge Airbnb Party Leaves
Property With $5,000 Worth of Damages
“’Unfortunately, we’ve had several experiences like this
so far, and this is the first one we didn’t catch in time
where we had damages occur,’ Goran Ariston, the
property owner and Airbnb host said.” (
WATE
,
04/25/22)
Nashville: Nashville Tourists Scared After Man
Attacked And Robbed At Downtown Airbnb
“A teen accused of violently robbing a tourist at a
downtown short-term rental is now behind bars.
Metro Police believe 19-year-old Jabauri Perry
followed the victim from a bar before attacking and
robbing the man from Florida.” (WKRN, 01/12/22)
Knoxville: North Knoxville Airbnb Shut Down
After Warning Notices, Loud Party
“As Oakwood-Lincoln Park neighbors rang in the new
year, they said a loud party broke out on Columbia
Avenue. Doorbell footage shows a large group of
people shouting and running down the street around
12:45 a.m. Sunday morning.” (WBIR, 01/3/23)
Chattanooga: Signal Mountain Residents React
To Airbnb Gang Bust At Home On South Street
“’We found eight cars. We found eight guns, three of
which are confirmed stolen. An amount of drugs that
will be going to the lab this week,’ said Chief Mike
Williams with the Signal Mountain Police
Department.” (Local 3 News, 12/1/21)
Nashville: Bachelorette Break-In: 12 Women
Robbed In A Nashville Airbnb In 12 South
“‘It’s scary to think because they did just walk in and
we know that the door was locked. So, like, I don’t
know what’s going on over there. But there’s no way
I’m renting a house. I’ll be in a hotel,’ said Caitlyn
Nelson.” (WTVF, 10/7/22)
Nashville: Metro Police Called To Short-Term
Rental Dozens Of Times In 2022 For Theft
“The complex along Elliott Avenue between Eighth
Avenue South and the 12South Neighborhood has
over a dozen short-term rentals. Metro Police said
they have had 148 calls for service to the location this
year.” (WSMV, 08/1/22)
Nashville: Birthday Party At Tennessee Short-
Term Rental Becomes Homicide Scene
“’We’ve unfortunately had other murders at short-
term rentals in my district in recent years,’ Sean Parker,
District 5 Metro Council member said. ‘It’s becoming
a safety issue in our community. It’s becoming a
burden for our police.’” (WATE, 01/11/23)
0
2000
4000
6000
8000
2020 2021 2022
# of Short-Term Rentals By Market
Sevierville Nashville Gatlinburg
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2020 2021 2022
Average Home Value By Market
Sevierville Nashville Gatlinburg
Commercial Airbnb Investors Targeting Communities Across Tennessee
DEPLETING HOUSING OPTIONS FOR CITY RESIDENTS AND RAISING THE COST TO RENT OR OWN A
HOME
More short-term rentals mean less affordable housing options for workers and puts owning a home out of reach for many Tennesseans.
“At the heart of many of these debates is the supply
of housing, especially as working-class people
continue to have trouble finding homes to buy
or even rent, with many getting purchased by
second-home owners or investors whose only
intent is to make money in the STR market.” (
Smoky
Mountain News, 06/22/22)
“But council chair Chip Henderson of Lookout
Valley said Wednesday he thinks a temporary
ban is needed in granting more permits for
absentee owners of short-term vacation rentals
after council members kept hearing concerns
about more homes in local neighborhoods…
being turned into lodging facilities for visitors
rather than being used to house residents and
community members.” (
Chattanooga Times Free
Press, 03/30/22)
“A new analysis by FOX 17 News finds nearly 30%
of all homes sold in Nashville this year are now
owned by investors. Local realtors say those
companies are buying with cash and pricing out
average home buyers… Most investors are
renting the homes out at a higher rate than a
would-be mortgage. Or turning them into
short-term rental properties.” (WZTV Nashville
,
07/15/22)
Tennessee’s average home value increased from $198,472 in 2019 to $311,333 in 2022 – up 57% over a three-year period.
Below is data from Zillow.com and AirDNA.co on average home values for Tennessee and top markets experiencing an influx of short-term
rentals. Converting a residential home into an Airbnb vacation rental reduces the housing supply and increases the cost to rent or own a home
for local residents. High demand and insufficient supply of housing continues to increase prices. While Tennessee home values have remained
relatively stable over the years, the proliferation of short-term rentals in key markets has dramatically exacerbated costs.
Source:
Zillow.com
Source:
AirDNA.co
81% of Tennessee voters believe it is important for local officials
to actively monitor short-term rental properties to deter
criminal activity in residential areas.
59% of Tennessee voters agree that the presence of short-term rental properties in residential
communities is harmful to a neighborhood’s sense of community.
54%
agree that commercial rental properties, including short-term rentals, should not be in residential
areas.
72% of Tennessee voters agree that the presence of commercial
short-term rental properties in residential communities
raises concerns about neighborhood safety.
Among the top concerns about short-term rental properties…
Þ 66% of voters are concerned about noise disturbances.
Þ 65% of voters are concerned about party houses.
Þ 53% of voters are concerned about trash or litter issues.
Þ 50% of voters are concerned about damage to property.
75% agree that lawmakers should prioritize the interests of homeowners and
renters in residential areas above those of out-of-state commercial investors.
59% agree that the presence of short-term rental properties in residential communities can lower the
value of surrounding properties.
59% agree that the presence of short-term rental properties in residential communities would deter
them from buying or renting in a certain neighborhood.
73% think that active oversight is important to ensure short-term rental
owners and companies pay their fair share of taxes.
76% of Tennessee voters support preserving local control of short-term rentals.
66% of voters agree that residential areas should be inhabited by people who intend to live there for
more than a few days.
Survey: Most TN Voters Concerned about Negative Short-Term Rental Impact
Morning Consult Survey Methodology: This poll was conducted between March 11-17, 2023, among a sample of 600 registered voters from Tennessee.
Interviews were conducted online and weighted to approximate a sample of Tennessee RVs based on age, gender, education, and 2020 presidential vote
choice. Results from the full survey have a margin of error of plus or minus 4 percentage points.
Large majorities of Tennessee residents are concerned about the negative impact of
short-term rentals in their communities, according to a new survey conducted by
Morning Consult on behalf of the Alliance for Stronger Communities.