OREGON COAST VISITORS ASSOCIATION: Myth-busting about Short-Term Rentals (STRs) on the Oregon Coast

Short-Term Rentals (STRs) are a vital part of the Oregon Coast tourism landscape. Like the Transient Lodging Tax, they are subject to a lot of misinformation. As the Regional Destination Management Organization for the Oregon Coast, we’re invested in making sure that our communities are healthy and sustainable long term– both for visitors and for locals. STRs play an important role in the economic landscape that make this place thrive, so let’s tackle some of the most common misconceptions head-on, with facts about STRs.

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Fact: On the Oregon Coast, 93% of short-term rentals are owned by individual owners who manage just that one vacation home, usually their family retreat that they open up to share with visitors. For many, STRs offer a way to afford a future retirement home or a modest income from a second home while still contributing valuable tourism dollars to the community.

Myth #2: “STRs are driving up housing costs and reducing workforce housing availability.”

Fact: STRs are often unsuitable for long-term housing, with about half lacking full kitchens or baths. Even when considering all 23,000 STRs as possible long-term housing, that only makes up about 4 percent of the needed 583,000 housing units that Oregon is projected to need by 2040. So even if they were suitable for long-term housing, they would not make much of a dent in the overall housing need.Myth #3: “STRs create nuisances.”

Fact: STRs complaints are rare. For example, in Tillamook County, there are around 1,200 short-term rentals. From 2019 to 2023, in all of those units, there were just 32 nuisance complaints total. That’s an annual violation rate of just 0.15 percent, or 1.5 per every thousand rentals. Many owners recognize their responsibility to provide a respectful, welcoming environment for visitors and neighbors alike.

Myth #4: “Tourism dollars don’t stay in our communities.”

Fact: Tourism contributes directly to the Oregon Coast economy. Tourism in Oregon has grown to become a $14 billion industry and in many communities – particularly in rural parts of the state – tourism is the number one economic driver. For the Oregon Coast specifically, tourism brings in nearly $2.4 billion of new money into the economy that was not there before.

Tourism contributes nearly 26,000 jobs to the coastal economy, employing workers and keeping afloat through seasonal influxes the restaurants, recreation, and cultural opportunities that year-round residents enjoy.

Understanding the Role of Short-Term Rentals (STRs)

STRs have come under scrutiny recently, especially with housing affordability concerns. But on the Oregon Coast, STRs fill a crucial gap, offering flexible accommodations in areas with limited lodging. They often operate as small businesses, contribute Transient Lodging Tax revenue, and support year-round economic activity. In some coastal communities, STRs account for up to 70% of available lodging options—making them critical for maintaining tourism without straining local resources.

The Bigger Picture: How STRs Benefit Oregon

STRs support Oregon’s tourism economy by meeting visitor demand, while contributing to the housing and rental market in other ways like property taxes, water, sewer, and utility fees that support community services. These revenues can also fund certain community improvement projects. When managed wisely, STRs and their revenues create a balance between tourism’s economic benefits and the sustainability of our coastal communities.

How can you get involved in the discussion?

Start by learning about how your own city or municipality manages STRs. Your voice can help ensure that STR regulations continue to benefit residents while enhancing Oregon’s tourism economy. By getting involved, you’re supporting a sustainable future for the Oregon Coast—one that keeps our communities thriving and welcoming to both locals and visitors.

Here’s more about the benefits of Transient Lodging Tax and short-term rentals for our coastal economy: