How the Rise in Short-Term Rentals Affects the Real Estate Market in the Triangle Area: A Guide for Real Estate Agents

The real estate market in the Triangle area of North Carolina—comprising Raleigh, Durham, Chapel Hill, and their surrounding neighborhoods—has seen significant changes over the past decade. One of the key shifts has been the rise in short-term rentals, driven by platforms like Airbnb and Vrbo. This trend is reshaping the dynamics of local housing markets and offering new opportunities for both investors and real estate agents. In this blog, we’ll dive into how short-term rentals are impacting the Triangle's real estate market and offer valuable tips for real estate agents looking to leverage this growing trend.

The Impact of Short-Term Rentals on the Triangle’s Real Estate Market

1. Increase in Property Demand and Prices
   Short-term rental platforms have made it easier for property owners to rent out their homes or investment properties for short durations. This has created a surge in demand for properties that are well-suited for short-term rental purposes. The Triangle, with its strong mix of universities (Duke, UNC, NC State) and a thriving tech scene, has become an attractive location for both vacationers and business travelers. In turn, there’s been upward pressure on property prices, especially in areas near universities, downtown Raleigh, and emerging tech hubs.
   
   

2. A Shift Toward Investment Properties
   With high demand for short-term rentals, many investors are purchasing properties not for long-term living, but specifically to rent them out for short stays. This has led to an increase in rental properties being listed as investments rather than traditional homes. Areas that were once predominantly residential now have more short-term rental options, which can alter the character of a neighborhood and lead to increased competition for available properties.
   
   

3. Neighborhood and Community Changes
   In some areas of the Triangle, short-term rentals are causing shifts in the community fabric. Long-term residents may find themselves competing with vacationers and transient renters for housing, leading to changes in the feel and social dynamics of neighborhoods. For real estate agents, this can present both challenges and opportunities, especially when navigating local zoning laws and regulations concerning short-term rentals.
   
   

4. Regulatory Scrutiny
   As short-term rentals continue to grow in popularity, local governments are starting to crack down on their regulation. In Raleigh, Durham, and Chapel Hill, municipalities are exploring or implementing stricter rules around short-term rentals, such as requiring permits, enforcing limits on the number of days properties can be rented, or imposing specific safety standards. These regulations can impact the availability and profitability of short-term rentals, affecting both investors and homeowners.
   
   

Tips for Real Estate Agents to Leverage the Short-Term Rental Trend

1. Educate Clients on Short-Term Rental Opportunities
   Real estate agents should be well-versed in the growing popularity of short-term rentals and how they can work for their clients. If your client is an investor, consider showing them properties that are not just suitable for long-term rental, but also for short-term rental use. This is particularly useful in high-demand tourist areas like downtown Raleigh or near universities. Provide data on potential earnings from platforms like Airbnb and explain the local regulations and best practices to avoid legal trouble.
   
   

2. Stay Updated on Local Laws and Regulations
   Since local regulations around short-term rentals are continuously evolving, real estate agents need to stay informed about the laws in their specific areas. This will help you guide your clients—whether they’re investors or homeowners—toward properties that are compliant with local zoning and rental ordinances. Understanding these nuances will be crucial for agents to avoid costly mistakes and ensure a smooth transaction.
   
   

3. Highlight Properties with Short-Term Rental Potential
   When showing homes, agents should look for properties that lend themselves well to short-term rentals. Key factors include location (proximity to popular attractions, universities, or business districts), property size (larger homes or multi-family units), and the potential for ease of management. Think about features like multiple bedrooms, en-suite bathrooms, and convenient parking that make the property more appealing to renters.
   
   

4. Market Properties with Dual-Purpose Appeal
   Many buyers are looking for properties that serve both as personal homes and investment opportunities. A property in the Triangle could be a primary residence, but with the addition of a basement apartment, guest house, or separate guest suite, it could also function as a short-term rental. Highlighting these dual-purpose features can make a property stand out in a competitive market, especially for investors looking to dip their toes into the short-term rental game without committing to an entirely separate investment property.
   
   

5. Create Specialized Marketing Plans
   For homes that are already functioning as short-term rentals, a specialized marketing plan can help increase their appeal. Use high-quality photos, virtual tours, and detailed descriptions that cater to short-term renters while showcasing the property’s investment potential. For example, including guest reviews from platforms like Airbnb can also help build trust and credibility with potential buyers or investors.
   
   

6. Leverage Technology and Data
   Real estate agents can tap into data sources that track rental performance, such as AirDNA, to provide potential investors with detailed insights on how properties in the area perform as short-term rentals. Showing clients comparative rental income projections based on current market trends can provide valuable context when evaluating the viability of a short-term rental investment.
   
   

7. Collaborate with Property Management Services
   Partnering with property management companies that specialize in short-term rentals can provide an added benefit for clients who want to invest but aren’t interested in managing the property themselves. By offering these services, you can provide a seamless experience from purchase to rental management, ensuring your clients’ investments are optimized for success.