The Sturgis Rally is here, and that means just about every hotel, motel and campground is packed to the gills. That also includes short-term rentals like AirBnB and VRBO.
In Sturgis proper, vendor licenses this Rally are down over the five-year average. In nearby Rapid City, the local economic development group reports occupancy of short-term rentals is down 3% from this time last year.
While this could be an indication of a smaller Sturgis Rally overall, revenues remain up on the region's 5,871 short-term rental beds, according to numbers from Elevate Rapid City.
Laura Jones is the groups housing and community development manager. She said the short-term rental market is still growing.
“Year-over-year, August, we’re still up 9% in number of homes listed," Jones said. "It’s fewer than January’s year-over-year, which was 11%, but the number is still increasing. They’re not going away.”
While acknowledging these rentals can foil local homebuyers, Jones said it’s important to remember both the city and local renters benefit from their presence.
“AirBnB and VRBO, it’s deep in their website, but they do make it a point to put their tax policy online – they pay their fair share," Jones said. "Often, at least here, they’re owned by locals. So, the revenue stays within the economy and continues to circulate.”
Despite that, she said young homeowners are most likely to lose out because of short-term rentals.
“It is a whole home, being listed, for a vacationer that can not be bought, sold, or rented long-term," Jones said. "They’re often small homes that could have been purchased for a first-time homebuyer.”
She said she anticipates balance being key for city lawmakers to consider as short-term rentals continue to play a real role in the Black Hills housing market.