Why I Rarely Recommend Vacation Rentals
- Jenny Lou Faber
- Aug 21
- 3 min read
Hello, travel bestie!
Hot take: I do not usually recommend vacation rentals.
I know, that might sound surprising coming from a travel agent. After all, short-term rentals like Airbnb and Vrbo are often marketed as unique, affordable, and more “authentic” than a hotel. And yes, in certain situations, a rental can absolutely be the right fit. But based on both my own community’s struggles and what I’ve learned digging into the research, the reality of vacation rentals isn’t nearly as rosy as the marketing makes it seem.
My Local Perspective
I live in a small coastal town that depends heavily on tourism. We’ve got hotels, motels, restaurants, antique shops, and even an outlet mall — plus, of course, vacation rentals. Our tourist season runs from spring break until back-to-school. The rest of the year? Pretty quiet.
Here’s the problem: our town is literally boxed in by the ocean on one side and mountains on the other. There’s no room to expand. What we have is what we have.
And because of that, vacation rentals have become a real issue. Many people from outside our community buy up homes and condos just to rent them out to tourists. While that’s great for someone visiting for a week, it leaves locals struggling to find housing.
The folks who keep our town running — hotel staff, restaurant workers, healthcare providers, teachers — are getting squeezed out. It’s gotten so bad that even recruiting essential professionals, like doctors, is difficult because there just isn’t enough affordable housing.
And it’s not just my little corner of the world. Places like Hawaii, New York, Milan, and Tokyo are all facing the same problem【Community Alliance Partners, 2022 questionnaire】.
The Bigger Picture
Zooming out, the story is the same globally. Short-term rentals were originally pitched as a way for everyday people to earn a little extra money from a spare room. But the reality looks very different today.
Housing Crisis: In New York City, Airbnb contributed to the loss of an estimated 13,500 long-term rental units between 2013 and 2017. By that time, there were more short-term listings (12,000+) available than apartments for local residents (just 5,600) (EcoSoc report on housing crisis).
Displacement & Gentrification: As properties flip from homes into rentals, housing prices rise and locals are pushed out. Communities lose their character and culture, replaced by a revolving door of visitors. In Barcelona, the issue became so severe that the mayor announced plans for a total ban on tourist rentals by 2029 (Rick Steves community discussion).
Community Breakdown: Locals often report that neighborhoods stop feeling like neighborhoods. A resident in Lake Placid, New York, described the change: “We used to know everybody, now we know nobody” (Adirondack Daily Enterprise).
Professionalization: It’s not really about “sharing” anymore. In Milan, nearly 60% of listings are managed by professional hosts running multiple properties. Short-term rentals there can earn 2.5x more profit than traditional renting — especially in working-class neighborhoods, which accelerates displacement (EcoSoc report).
Yes, there are undeniable upsides. Airbnb reported that in 2024, it contributed over $22.1 billion in US tax revenue and supported more than 1 million jobs in hospitality and food services. For nearly half of hosts, the income even helped them stay in their homes. But at what cost? Too often, the burden falls on the very people who make our communities thrive year-round.
Where I Stand
As a travel agent, I’m not completely opposed to vacation rentals. There are situations where they make sense — a large family trip, a long stay in a rural area, or when hotels simply aren’t available.
But in most cases, I encourage travelers to think carefully about where they spend their money and how it impacts the community they’re visiting. Staying in a hotel or locally owned inn can help keep housing available for residents and support the workers and businesses that rely on tourism without hollowing out neighborhoods.
I’d personally love to see stronger zoning laws and smarter regulations around short-term rentals, so towns like mine — and cities around the world — aren’t overrun by them.
At the end of the day, travel should benefit both the visitor and the community. And right now, vacation rentals too often tip the scale in the wrong direction.
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