The Sunshine State Struggles to Fill Vacant Rentals

New data reveals an immense number of empty houses across major US cities. Over 5 million vacant units exist in the 50 largest metro areas, per the US Census Bureau. Florida cities like Miami and Tampa have especially high vacancy rates.

Experts note much of the inflated vacancy stems from short-term rentals. Properties rented out short-term on sites like Airbnb fall into a gray area - not fully vacant, but not occupied permanently either. The census vacancy definition likely captures many of these temporary vacation rentals.

Cities like Miami and Tampa have seen massive growth in Airbnbs and other short-term rentals in recent years. Recent Miami restrictions placed on short-term rentals may have shifted some of those units back to long-term housing, contributing to the area's double-digit vacancy rate.

Industry analysts say short-term rental companies gobbling up condos to list on their platforms have tightened Florida's housing supply. Each unit flipped to a short-term rental removes a home from the traditional rental and sales market. This exacerbates vacancies and affordability issues.

Short-term rental demand also rebounds slower than the primary housing market following economic downturns. As tourism limps back, units normally rented to vacationers sit empty, awaiting a full travel recovery.

While short-term rentals explain part of the vacancy surge, experts are divided on whether this signals danger. Some see it as affirming a peak, with prices soon to moderate. But others caution the figures could still underestimate the supply-demand imbalance, if short-term units return to traditional housing.