Case Study : Chicago Chicago took a different regulatory approach , introducing new taxes and strict data-sharing requirements for short-term rental platforms . The goal was to ensure that short-term rental operators were paying their fair share in taxes and to monitor the number of active rentals in the city .
While this regulation wasn ’ t an outright ban , the additional costs and administrative burden discouraged many hosts from continuing their Airbnb operations . This resulted in a 16 % decline in active listings , which had a ripple effect on both tourism and residents who relied on Airbnb for supplemental income .
The reduction in short-term rental options meant that tourists had fewer affordable places to stay , leading to increased demand for hotels and higher accommodation prices . At the same time , some property owners , who had relied on Airbnb to cover mortgages and expenses , were forced to sell their properties or convert them into long-term rentals , which altered the city ’ s rental market dynamics .
Chicago ’ s case demonstrates how high taxation and heavy administrative regulations can push operators out of the market , hurting both the tourism sector and local residents who rely on short-term rentals as an income stream .
32 REI MAGAZINE FEBRUARY 2025