Testifiers shed light on need for short-term rental regulation in PA
Policy hearing examined impact of short-term rentals on housing availability, tourism
Policy Committee July 29, 2024 | 2:44 PM
PITTSBURGH, JULY 29 – The number of short-term rental properties are on the rise in Pennsylvania, and testifiers at Monday’s House Majority Policy Committee hearing on the topic detailed the need to introduce regulations to address ongoing concerns.
The hearing, hosted by Rep. Lindsay Powell (D-Allegheny), examined the increase of short-term rental properties and its impact on tourism and housing availability. In 2022, there were 107 active short-term rental properties in Lawrenceville, but that number has since doubled and continues to increase. This increase in rental property ownership comes amid a housing crisis facing residents across the state.
“We have a growing need to make sure we have affordable, accessible, and dignified housing. We also have a need to expand our tourism efforts in Western Pennsylvania,” said Powell. “We need to explore ways we can expand tourism while creating more opportunities for affordable housing in a way that they are not diametrically opposed.”
Testifiers noted a disturbing trend of out-of-town entities purchasing homes for the sole purpose of turning them into a short-term rental properties. A recent Corporate Housing Study showed an 18% increase in houses sold to corporate entities in Allegheny County.
“There’s strong evidence that short-term rentals exacerbate our affordability crisis by reducing the overall supply of rental housing through conversions into short-term rentals and by boxing out prospective homebuyers,” said Dave Breingan, Executive Director of Lawrenceville United. “This will disproportionately impact low-income and elderly homeowners, families with children and first-time homebuyers.”
Testifiers agreed that local, responsible short-term rental operators can and have helped positively impact the area. However, many out-of-town entities purchase property for short-term rental use, then neglect their responsibilities. This has led to massive late-night parties that come with disruptive noise, public drunkenness, fighting and littering.
With the impacts on housing affordability, public safety and tourism, testifiers detailed the need for more regulations on short-term housing ownership. Recommendations include preserving housing stock for traditional homeownership, introducing efforts to minimize public nuisance complaints and reducing heavy concentrations of short-term rentals in residential areas.
“Short-term rental properties can serve as a great option for travelers to utilize, but it’s clear there’s a deeper impact these properties are having on our communities that we need to examine. We must find a way to address the housing and safety concerns while supporting competent rental property owners and the tourism industry,” said House Majority Policy Chairman Ryan Bizzarro (D-Erie).
Monday’s hearing was held at Goodwill in Pittsburgh. In addition to Breingan, testifiers included Jerad Bachar, President and CEO of Visit Pittsburgh; Kristen Oakes, Corporate Director of Sales for Century Hospitality; and Heather Mallak, who owns and operates three Airbnb properties in the Lawrenceville area.
Testimony from Monday’s hearing can be found here.