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Pinellas County Short Term Rental Zoning- The Hidden Factor Pushing Record Appreciation
Dated: October 18 2021
The demand for short-term rentals in Pinellas County has recently skyrocketed as data is showing it to be one of the most profitable places to buy In the country. Most investors are looking to purchase short-term rentals as the profit is two to three times higher than they would receive for an annual rental property. While this is true, it is hard to ignore what short-term rental zoning can do to appreciation in a County that does not allow short-term rentals in a large majority of municipalities.
The effect of short-term rental zoning can most clearly be seen in Gulfport home values. Gulfport does not have a beach or large downtown area and most out-of-state travelers have never heard of the small town until they go to look for an Airbnb in St. Pete and see very few options outside of Gulfport.
The limited supply of St. Pete properties on sites like Airbnb is caused by zoning regulations that do not allow rentals for less than 30 days. Many people point out that it is possible to find short-term rentals across St. Pete, but these properties are either in an unincorporated neighborhood or operating illegally. As St. Pete zoning enforcement cracks down on illegal rentals we will only see the profitability and value of Gulfport rentals rise as visitors have fewer options to choose from.
Gulfport currently has a record high appreciation and it makes complete sense when you consider how short-term rental investors think when they purchase a home. The word is out that the right short-term properties can generate substantial returns and investors are happy to bring cash to close on a home that does not appraise as they see value very differently than your typical home buyer.
This pattern of short-term rental caused appreciation is happening across the country and Airbnb data is projecting demand to grow as COVID increases the number of remote workers looking for short stays in desirable areas. As this trend grows it is crucial to be aware of the zoning laws and how it will continue to affect property values.
Feel free to reach out to email@example.com if you have questions about zoning laws in any part of Pinellas. Our agents specialize in short-term rentals and we have created a custom map explaining the zoning regulations in all areas.
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