Myth 1 - STRs are ‘mom-and-pops’ trying to make house payments
- In Lewisville, our research has found that to be less than 20%.
Of all the known owners of STRS, we excluded:
1) Management companies and LLC owners, as they are obviously registered businesses, using real estate for profit.
2) Owners with verifiable multiple properties in Denton, Dallas, Collin and Tarrant counties according to their appraisal district websites.
3) Hosts with multiple listings.
Myth 2 - STRs are good for cities and the economy
For Lewisville: STRs drive-up housing costs.
According to the Journal of Urban Economics citation of Kosteretal’s publication, a 1% increase in Airbnb listings increase rent by 0.0108% and housing prices by 0.026%. Although this doesn’t sound like much, let’s put it into perspective:
Based on the STR presentation from Sept. 11 presented to Council, there has been an 86% increase in STR listings in Lewisville from 2020-2023
For rental prices:
1) Equates to an almost 1% increase (0.0108% * 86 = 0.9288%)
a. Zillow states the median rental price in Lewisville is $2415/mo. as of 9/26/23
b. Without STR inflation, rent would decrease $24.15/mo or $289.80/year
i. According to Point2pointhomes.com, 58.44% of the 45,886 housing units in Lewisville are renters (26,816)
1. Saving renters a total $647,606.40/mo or $7.77M/year
For housing prices:
1) Equates to over a 2% increase (0.026% * 86 = 2.223%)
a. Zillow says the median home price in Lewisville is $402,039 as of 8/31/23
b. Without STR inflation, home prices would decrease $8,040.78 or almost a $10k reduction
Myth 3 - I can do what I want with my private property.
When buying in a residential neighborhood, you are subject to local zoning ordinances that forbid certain activities incompatible with residential neighborhoods.
Lewisville currently has 6 residential zoning districts. Exhibit VII.2.3-2 shows the allowable uses in a residential zoning district.
If I wanted to have a cemetery in my single-family residential zoned district, I would be required to apply for a supplemental use permit for legal construction and operation. The requirements for a SUP are well documented in city code and would come at great expense to homeowners provide enough detail as to elicit city support and approval. Additionally, my neighbors could weigh in support or opposition of my SUP request.
However, if I wanted to start a car repair shop on my property, Section VII.2.1 states “unlisted uses are NOT allowed.” Thus, my neighborhood is not equipped to support or deal with the traffic, chemical use, machinery noise, etc., that would come with me starting this business out of my house.
Therefore, just because it is MY private property, it doesn’t mean I can do whatever I want to with it. If I did, there could be civil and/or financial penalties put on me by the City because I am in violation of zoning laws.