How common are short-term rentals in West Hollywood?
How common are short-term rentals in West Hollywood? This analysis answers the question in four ways, expanding on our earlier report on Airbnb rentals. The most important data comes from Inside Airbnb.
Number of short-term rentals in West Hollywood
How many active short-term rentals are there in West Hollywood? We think about 700.
There were about 450 active Airbnb listings at the beginning of May. By “active,” we mean listings that got at least one review in the past six months. We don’t have numbers for the other listing services, such as HomeAway or VRBO. However, an organization called LAANE (Los Angeles Alliance for a New Economy) did a study last year and concluded that 65% of Los Angeles listings were on Airbnb. If we divide 450 by 65%, we get about 700.
Number of short-term-rental stays
How often do people rent and stay in short-term rentals in West Hollywood? We estimate about 28,000 times a year. That’s a snapshot based on activity in April. This is our math:
|768||Airbnb reviews in April 2016|
|X||12||months in a year|
|X||2||assuming only 50% of renters leave a review|
|÷||65%||Airbnb’s market share|
|=||About 28,000||short-term-rental stays per year|
The results are shown in the chart below, rounded to the nearest thousand:
If we compare the first two charts, we see that differences in stays are bigger than differences in listings. Hollywood’s estimated listings are double West Hollywood’s, while stays are triple West Hollywood’s. Santa Monica and West Hollywood have a fairly similar number of listings, but Santa Monica has significantly more stays.
Number of dedicated short-term-rentals
How many units are devoted to short-term rentals? Our estimate is that 400 units may have been removed from the housing supply and dedicated to short-term rentals.
400 units is about 2% of West Hollywood’s rental housing supply. For comparison, Census Bureau data shows about 725 units vacant and available for long-term rent at any given time. The number of available units affects move-in rents and the odds of a household finding the right housing when they need it.
Number of short-term renters as temporary neighbors
How many short-term renters stay in residential properties, becoming temporary neighbors? Our rough estimate is that 120 people start a short-term rental on an average day. If they stay an average of 3 days, then there are about 360 short-term renters in the city on an average day (more on peak days, fewer on off-peak days). The city’s population is almost 36,000. So, on the average day, the number of short-term renters is equal to 1% of city’s population.
The answer is different if we look over longer time periods. For example, over the course of a year, how many short-term renters become residents’ temporary neighbors? Our estimate is about 44,000. That’s roughly 120% of the city’s population. Put another way, 10 permanent residents get 12 temporary neighbors over the course of a year.
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