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# Bigger Pockets: Cities are Cracking Down on Short-Term Rentals – What Does It Mean for Investors?
- URL: https://www.smartinvestingsociety.com/bigger-pockets-cities-are-cracking-down-on-short-term-rentals-what-does-it-mean-for-investors/
- Published: 2023-09-22T12:02:48.000Z
- Updated: 2023-09-22T12:02:48.000Z
- Author: Smart Investing
- Tags: Economy, Real Estate, #wp, #wp-post, #Import 2026-09-30 15:32

For most Americans, their primary asset is their home. An increasing number of Americans also invest in real estate to enjoy the long-term price appreciation potential and income that it provides.

In recent years, the income potential from short-term rentals has soared. That’s thanks to the rise of companies like **Airbnb (ABNB)**. The company brings together homeowners and customers for anything from a single room to a whole home. However, many cities are putting in regulations on short-term rentals.

In 80 percent of markets, there’s at least some regulation on short-term rentals. And some places are even charging taxes that have been subject to hotels and resorts. The impact of these rules is a restriction of short-term rentals.

That could impact the housing market. Many investors bought a second property for the high-income potential of a short-term rental in recent years.

The inability to rent out a short-term property may be slowing listings. New York City has about 40 percent fewer listings than in 2018\. But in regulation-light Phoenix, listings have grown by 96 percent.

Ultimately, potential real estate investors need to consider the impact of a short-term rental versus a long-term one. Even an accidental violation can trigger fines, fees, and higher taxes.

[To read the full impact of laws impacting short-term rentals, click here.](https://www.biggerpockets.com/blog/crackdown-on-short-term-rentals-get-tougher?ref=smartinvestingsociety.com)