How Vacation Rentals Are Reshaping Beach Town Housing Markets

This episode of The Business of Real Estate with Fexingo examines the growing tension between short-term vacation rentals and long-term housing availability in coastal resort towns. Lucas and Luna dive into the specific case of Ocean City, Maryland, where over 70% of single-family homes are now STRs, driving median home prices past $700,000 and pushing out year-round residents. They explore the economics behind a typical three-bedroom beach rental generating $85,000 in annual revenue versus $38,000 in long-term rent, and discuss how towns like Santa Monica and Portland, Maine, are responding with permit caps, occupancy taxes, and zoning overlays. The conversation also touches on institutional investors buying up coastal properties for dedicated STR portfolios, and what that means for local affordability. Specific, data-driven, and grounded in real policy debates — perfect for anyone investing in or living near a tourist-driven real estate market. #VacationRentals #ShortTermRentals #BeachTownHousing #OceanCityMaryland #SantaMonica #PortlandMaine #Airbnb #HousingAffordability #RealEstateInvesting #STRRegulation #OccupancyTax #CoastalRealEstate #InstitutionalInvestors #SingleFamilyRentals #Business #RealEstate #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo