Frisco, Colo. - There has been an increasing amount of scuttlebutt in the local news, social media channels and regional meetings of late that vacation rentals, and the permits associated with them, are “exploding” in Summit County.
As with any message putting data out for public consumption, this one comes with a disclaimer: not all data is perfect and some of these sources may have duplicate or overlapping data. So, that said, digest this information as you will but keep it in mind when you hear rumors about “exploding” vacation rental permits in Summit.
AirDNA, a purveyor of knowledge in the vacation rental market offered their insights as to the number of active vacation rentals within Breckenridge this week (Tuesday, August 3, 2021). It reveals that if anything, vacation rentals in the Town of Breckenridge are remaining consistent, averaging near 4500 active rentals in Breckenridge annually. Here’s a snapshot of the hard data:
While there was a spike in active rentals at the end of 2019 and beginning of 2020 – to busy winter holidays and ski season – the decline in 2021 tells a different story. With only 3,780 active vacation rental units between AirBnB and VRBO combined as of the end of July, we are seeing virtually the opposite of an explosion.
This data is further supported by the Town of Breckenridge, who has shown a very slow but steady increase in vacation rental permits issued by the Town, as shown here:
Several property management companies in Breckenridge report hearing from homeowners that they are picking up vacation rental permits “just in case” a moratorium becomes an issue. These homeowners have reported wanting to preserve their right to use their second homes as they see fit. While they might not be renting right now, at some point, they may want to, so they are picking up permits to have the right to offer their home as a vacation rental in the future.
A third point of data for Breckenridge, the Breckenridge Tourism Office offers an interesting perspective through their partnership with industry-leading data house, Destimetrics. While we see the numbers of licensed vacation rental units in the data from the Town of Breckenridge above, the numbers from the tourism organization offer a different perspective. Of those licensed units, not all are renting – which backs the theory mentioned previously that homeowners are picking up permits to be protected in the event of a moratorium. For example, of the permits available in 2020, only 2,924 of those units had income producing occupancy to report. In years leading up to 2020, the numbers show a similar discrepancy between number of permits issued versus those associated with revenue production.
In congruence with the Breckenridge data, the recent debate in Frisco regarding a proposed restriction on vacation rentals sparked SAVRM to ask AirDNA for more information regarding rentals in the Town of Frisco. As of the end of July, there are 1216 available rental properties listed in Frisco combined between AirBnB and VRBO which is a significant decrease over the first quarters of 2021. Here’s an overview of the number of available rental properties within Frisco:
It is equally important to note that of the number of vacation rentals available in Frisco, it is heavily weighted towards condominiums and townhouses – fewer than 300 of the currently available vacation rentals in Frisco are private, single-family homes (which is what the Frisco Petition is targeting with its proposed vacation rental restrictions). There are 3600 total dwellings in Frisco, out of which 638 have vacation rental permits currently in place, with more than half of those permits being attached to townhomes or condominiums.
While the rumor mill continues to convey the message that vacation rentals are exploding, the data certainly does not support this. Post-pandemic trends show, if anything, a slowdown in the vacation rental sector in both Breckenridge and Frisco – which are the two towns within Summit County currently taking the most heat for vacation rental growth.
Lastly, it is worth noting that the numbers presented here point to only slight growth in the number of available vacation rentals within Breckenridge, and in the case of the AirDNA data: a lull, in the vacation rental industry. By no means should this be categorized as an “explosion,” pointing to the fact that perception and reality are often two very different things.
The Summit Alliance of Vacation Rental Managers is dedicated to helping find solutions that promote a healthy balance between community and economic sustainability for our mountain towns, and in that process strives to provide accurate data that will help lead an informed dialogue for all parties.
The Summit Alliance of Vacation Rental Managers is a coalition of professional vacation rental managers, vacation rental owners, and services that support the vacation rental industry in Summit County Colorado. We have joined together to unify and empower our voice in the community. We are dedicated to advocating for fair and effective policies that will enrich our community, enhance our environment, and engage our industry.
