In Austin, A Boom In Short-Term Rentals Brings A Backlash

Kristen Hotopp stands in the front yard of her well-worn East Austin home, where she has lived for the past 17 years. She points across the street at an attractive, nearly new, two-story home — by far the nicest on the block. "There are two units on this lot," Hotopp says. "There's a house in the back that's smaller and a house upfront. We're getting investors descending upon the area and buying up a lot of these properties." Like many fast-growing regions, the state of Texas is grappling with the growing market for short-term home and condo rentals like those listed on Airbnb and HomeAway. That has especially been true in Austin. Even though Hotopp's working-class neighborhood is close to Sixth Street and other Austin music districts, she has lived quietly with her husband and young son. But that changed two years ago when the new house across the street turned out to be a short-term-rental property. Suddenly, the good times on Sixth Street were rolling back to her block at 2 a.m.