Inventory and Analysis of Short-Term Rentals in Pennsylvania

Abstract

This project conducted an in-depth inventory of Short-Term Rentals (STRs) in Pennsylvania, using AirDNA data from 2008−2023, and mapped STR locations in a Geographic Information System (GIS). The growth of STRs in Pennsylvania has been remarkable, beginning modestly in 2008 and expanding rapidly over the next 15 years. What started with just a handful of properties has grown into a substantial market by 2023, with 53,810 active listings across all 67 counties. The STR market's evolution reflects broader trends in the sharing economy, with properties ranging from luxury apartments to unique accommodations like yurts and houseboats. The financial performance of these rentals also saw significant growth, with total revenue reaching $856.7 million in 2023. This growth highlights the increasing importance of STRs within Pennsylvania's tourism and housing markets, as well as their diverse appeal across both urban and rural areas. This project examines the distribution of STRs across Pennsylvania historically at the statewide level, and analyzes 20 municipalities for housing characteristics, occupancy rates, economics, maximum guests, and bedrooms to gain insights into potential housing issues. The analysis shows how urban areas like Harrisburg, Erie, and Allentown leverage their economic bases and historical significance to attract STRs. In contrast, rural areas like Gettysburg, Jim Thorpe, and State College see growth driven by tourism linked to historical sites, natural beauty, and educational institutions. The research highlights disparities in Average Daily Rates (ADR) and occupancy rates between urban and rural areas, emphasizing the need for tailored policies for each. As STRs grow in popularity, this study offers a foundation for municipalities to manage and regulate this sector, ensuring positive contributions to local economies and community well-being.