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from July 2023 Go Sandpoint Magazine

Are Short-Term Rentals KILLING SANDPOINT’S Housing Market

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The Steady Rise of Short-Term Rentals

Fast forward from 2008 to 2023, and it's clear that short-term rentals are firmly embedded in our travel culture. Undoubtedly, they bring many positive impacts to communities, such as increased property values through home renovations or the construction of dedicated guest houses. However, we must consider whether short-term rentals are inadvertently causing harm to the housing market here in Sandpoint.

The Impact on Sandpoint's Housing Market

One significant consequence of the popularity of short-term rentals is the reduction of available homes on the market. Many homeowners and landlords have chosen to convert their properties into short-term rentals, enticed by the promise of higher profits. Landlords can make more money over long-term rentals, and homeowners can keep an asset which will appreciate—all while having their mortgage paid for and typically have spare change. This is called cash flow. However, while this decision may be financially advantageous for individual owners, it has led to a limited housing supply in Sandpoint.

As demand for housing in the area rises, home prices and rental rates have soared to unprecedented levels. Unfortunately, this surge in costs has resulted in the displacement of long-term residents. Local individuals and families, who have called Sandpoint home for years, are often priced out of their own neighborhoods. Their only options are to move in with other family members or friends, or in more distressing cases, to leave the area entirely.

How about the neighborhood impact? With the frequent turnover of tourists in short-term rental properties, this can disrupt that community’s cohesion, making it a challenge to establish and maintain a long-lasting relationship among neighbors. If cars are coming and going, like mosquitoes at a picnic, the negative impact on the sense of community will certainly be present. You can’t go to the Jones’ for a cup of sugar because every couple of days there are new cars in the driveway and new people staying the night.

Balancing the Benefits and Consequences

The growth of short-term rentals undoubtedly presents a complex issue. On one hand, they provide economic opportunities for homeowners and contribute to the vibrancy of tourism. On the other hand, the resulting housing shortage and increased prices pose challenges for local communities, potentially compromising the long-term livability of Sandpoint.

'How is the housing market?'

courtesy of BEN GEANETTA, REALTOR®, TEAM LEAD

I HAVE BEEN ASKED THIS MORE AND MORE LATELY: “HOW IS THE HOUSING MARKET?” The best way I can explain this market is to compare it to a bad case of whiplash. The market starts to pick up only to slow down … only to pick up again ... but then comes to a halt. Mortgage rates are still primed to come down—just a bit later in the year than previously anticipated. We have seen the luxury market not as affected as the entry-level homes, but relief is on the way. Stay patient and use this time to better position yourself to either buy or sell

Are you curious about current real estate trends in Sandpoint, Idaho? See page 42!

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If you’re looking to buy or sell, making sure the right advocate is working for you is more important than ever—so is maintaining our community and preserving the qualities that make Sandpoint, Idaho, such an incredible place to live. With resumes that include careers such as lawyers and psychologists, our dedicated team brings an extra level of professionalism to the table. We pride ourselves in our ability to negotiate and advocate on behalf of our clients, to make sure you are getting the best deal possible, whether you are buying or selling property. Contact us for your real estate needs, and discover why we’ve earned all 5-star ratings!

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