Austin’s Short-Term Rental Rules are Changing: What You Need to Know

Austin is gearing up for significant updates to its short-term rental (STR) regulations, aiming to improve compliance, enhance revenue collection, and ensure responsible hosting practices. These changes could affect property owners, platforms like Airbnb and Vrbo, and the broader Austin community. Here's a breakdown of what’s happening and how you can get involved.

Why Are Changes Happening Now?

The last major update to Austin’s STR rules was in 2016, but the city has since faced challenges in licensing, enforcement, and addressing community concerns. Thousands of STRs operate without licenses, potentially costing Austin millions in hotel occupancy tax (HOT) revenue. Additionally, legal challenges have limited Austin's ability to enforce zoning-based restrictions, leading to unregulated STR growth across the city.

In response, Austin initiated a review process in 2022, culminating in the draft rule revisions announced this winter. These updates aim to streamline enforcement, regulate platforms more effectively, and mitigate neighborhood nuisances while promoting housing affordability.

Proposed Rule Changes

The draft rules propose a shift from zoning-based regulations to a business regulation framework. Key changes include:

STR License Display: Platforms must ensure all listings display valid STR license numbers.
Delisting Non-Compliant Units: Platforms will be required to remove unlicensed properties from their sites upon the city’s request.
Density Caps: A 1,000-foot buffer will be introduced between STR units, and properties with three or fewer units will be limited to individual operators rather than businesses.
HOT Collection by Platforms: STR platforms will collect and remit Austin’s local hotel occupancy tax during booking to ensure full compliance.

The Current STR Landscape in Austin

As of January 2025, only 2,220 STRs in Austin are licensed, while estimates of unlicensed units range from 10,000 to over 15,000. Most licensed STRs are located in downtown and nearby neighborhoods. The proposed regulations aim to close the gap between licensed and unlicensed operations, potentially increasing the $7 million in annual HOT revenue currently generated by licensed STRs.

How You Can Get Involved

Public participation is essential to shaping these changes. Austinites are invited to attend informational sessions and public hearings to share their feedback:

Informational Sessions:

Jan. 21: 11 a.m.–1 p.m. via Zoom
Jan. 22: 6–8 p.m. at Montopolis Recreation and Community Center
Jan. 23: 6–8 p.m. at Permitting and Development Center
Jan. 27: 6–8 p.m. at Austin Central Library

Public Hearings:

Feb. 4: Joint Planning Commission and City Council meeting
Feb. 11: Planning Commission meeting
Feb. 27: City Council meeting

Why These Changes Matter

For property owners, these updates mean stricter compliance requirements and potential operational limits. Platforms like Airbnb and Vrbo will face new obligations to collaborate with the city on enforcement and tax collection.

For the community, these changes aim to reduce neighborhood disruptions, increase city revenues for cultural and tourism initiatives, and balance the housing market.

Stay Informed and Take Action

The proposed changes to Austin’s STR regulations could significantly impact the local market and community dynamics. Whether you’re a property owner, an STR host, or simply concerned about your neighborhood, now is the time to get involved and make your voice heard.

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