Facts Matter.

Data provides a clear picture. With accurate information on short-term rental listings and their impact, we can better appreciate how this industry impacts our local economy and community. While differing interpretations may arise, it’s essential to rely on comprehensive data to ensure informed, balanced policies that reflect the true dynamics of the short-term rental market.

Number of Active STR Listings

AirDNA tracks the monthly number of active short-term rental listings in Gloucester, MA. The data shows that the number of active STRs has remained relatively flat over the past five+ years. 

(See footnote 1)

  • Population
  • Population

Housing Unit Composition

This chart provides a clear breakdown of Gloucester’s housing composition, highlighting the proportions of long-term occupied homes, vacant properties, and short-term rental units.

Understanding these figures helps contextualize the role of STRs in the overall housing landscape.

(See footnote 3)

  • Long-Term Occupied
  • Vacant Homes
  • STR Units
  • Long-Term Occupied
  • Vacant Homes
  • STR Units

Purpose vs. Impact.

The stated goal of the new regulations is to protect the health and safety of residents, maintain the residential nature of neighborhoods, and safeguard quality of life.

However, concerns about the impact of short-term rentals on housing affordability may be overstated. Research from the University of Pennsylvania suggests that short-term rentals like Airbnb have a minimal effect on the housing market. According to the study, a 10% increase in Airbnb listings results in just a 0.18% rise in apartment rents, which in Gloucester equates to only a $2.26 monthly increase for renters. (See footnote 2)

How do short term rentals contribute to Gloucester’s community?

Small businesses

  • Tourists staying in short-term rentals often spend money at local restaurants, cafes, shops, and attractions. This spending directly supports small businesses, helping them thrive in Gloucester's economy.

  • STRs provide flexible options for travelers, from families needing larger spaces to remote workers looking for longer-term accommodations, expanding Gloucester’s appeal to a wider range of tourists.

Jobs and employment

  • Short-term rentals generate jobs for cleaners, property managers, landscapers, maintenance workers, and other essential services. Many hosts hire locally, keeping employment opportunities within the community.

  • From electricians to laundry services, the short-term rental industry creates sustained job opportunities for a wide range of workers, contributing to Gloucester’s year-round economy.

Tax revenue

  • Airbnbs and VRBOs contribute 12% of their revenue to taxes, benefiting both Gloucester and Massachusetts. This tax revenue supports public services, infrastructure improvements, and community projects.

  • The 3% Community Impact Fee collected from short-term rental operators with 2+ listings goes to Gloucester's Affordable Housing Trust, helping to fund housing initiatives and support the development of affordable housing in the city.

Sources and Data

1. Source: AirDNA. Available listings include both Airbnb and VRBO properties and represent the total number of rentals listed for booking on these platforms. According to AirDNA, for a listing to be considered "available," it must have at least one reserved calendar day during the reporting period. These figures can differ from the City of Gloucester’s registered STR count because some properties registered with the city may not be consistently listed on major platforms. 

2. Barron, K., Kung, E., & Proserpio, D. The Effect of Home-Sharing on House Prices and Rents: Evidence from Airbnb. Wharton School, University of Pennsylvania.

3. Source: US Census, AirDNA.

  1. Long-term Occupied (US Census): A housing unit is classified as long-term occupied if it serves as the primary residence for an individual or group, even if they are temporarily absent for up to two months. In Gloucester, 13,299 of the 15,133 total housing units are occupied year-round by homeowners or long-term renters.

  2. Vacant (US Census): A housing unit is considered vacant if no one resides in it at the time of the interview, unless the occupants are only temporarily away, or if it is temporarily occupied solely by people who usually reside elsewhere. Of Gloucester’s housing units, 1,834 are classified as vacant, with 411 of these being available short-term rental (STR) listings and 1,423 units vacant and non-STRs as of September 2024.

  3. Available Listing (AirDNA): A vacation rental is classified as an active listing if it has at least one available calendar day within the specified reporting period. In Gloucester, 411 housing units meet this criterion in 2024

Number of long-term occupied and vacant housing units as of 2020; number of STR units as of 2024.

US Census Data