Exploring the Survival Mechanisms of Short-Term Rentals in Virginia: A Comparative Analysis of Rural versus Non-Rural Markets

Abstract

This study provides a comprehensive analysis of the survival mechanisms of STRs in Virginia, particularly focusing on rural versus non-rural markets. Utilizing data from AirDNA, we observe 16,852 active listings from 2018 to 2022. The study identifies the influence of various factors on STR longevity, including unit type, location, and the number of bedrooms. It is a unique attempt to bridge the gap in understanding the dynamics of short-term rentals (STRs) in rural and urban contexts. Our findings reveal differences in the survival patterns of STRs in rural versus non-rural markets. In particular, rural STRs exhibit higher survival probabilities compared to their non-rural counterparts. Furthermore, Full-Time STRs, which are primarily dedicated to short-term rentals, show significantly higher survival probabilities than Occasional STRs, regardless of their location. These findings serve as critical inputs for stakeholders involved in policymaking, regulation, and industry strategies. By highlighting the distinctive dynamics of rural and urban STR markets, we underscore the need for context-specific regulations that can balance the economic benefits of STRs with the preservation of local housing options. © 2023 by the authors.