Airbnb generated $1.6 billion in economic activity in Houston in 2023

Key Takeaways

  • Airbnb released new data showing hosts and guests in the Houston metro area contributed an estimated $1.6 billion in economic activity in 2023.
  • Hosts in the Houston metro area helped support nearly 20,000 jobs and generate an estimated $400 million in total tax revenue.
Room with a wooden floor and gray couch in front of a panel of windows

Key Takeaways

  • Airbnb released new data showing hosts and guests in the Houston metro area contributed an estimated $1.6 billion in economic activity in 2023.
  • Hosts in the Houston metro area helped support nearly 20,000 jobs and generate an estimated $400 million in total tax revenue.

Short-term rentals play a critical role in supporting Houston’s tourism industry and the local economy by offering tourists unique, affordable accommodations. Airbnb released new data showing that hosts in the Houston metro area welcomed more than 1.8 million guests who contributed an estimated $1.6 billion in local economic activity in 2023.1

By welcoming guests into their homes who then spend money on local businesses, hosts in the Houston metro area helped support nearly 20,000 jobs,2 which in turn generated approximately $1 billion in income for local workers in 2023.3 

Airbnb hosts also help raise important tax revenue for the city. Last year alone, Airbnb hosts in Houston  contributed an estimated $400 million in total tax revenue,4 including $8.5 million in local hotel occupancy taxes collected and remitted by Airbnb on behalf of hosts in Houston.

Chart depicting how Airbnb Guests lead to host earnings so they can invest in improvements, as well as direct spending at restaurants/bars, shopping, local/air transportation, experiences, entertainment, etc. This in turn leads to indirect impacts of hosts spending their earnings and employees spending their wages, as well as induced impacts of investment in housing, stimulated supply chain, and B2B transactions. This leads to total impacts on GDP, jobs, wages, and tax revenue.

Hosting on Airbnb is a vital source of supplemental income for residents in Houston. According to a survey of hosts conducted in 2023, 56 percent of hosts in Houston said they plan to use the money they earn from hosting to keep up with rising costs of living, while more than a third said hosting has helped them stay in their home.5 For many hosts, eliminating the revenue earned through Airbnb would be a major blow, in some cases undermining their ability to afford to live in the region.

“This new analysis underscores how home sharing is an important economic lifeline for many Houston residents and a vital contributor to Houston’s tourism economy,” said Luis Briones, Senior Public Policy Manager at Airbnb. “It will help inform our work with Houston leaders to develop fair, balanced regulations that balance the economic benefits of home sharing with the needs of the community.”

Airbnb remains committed to partnering with Houston leaders to support responsible tourism. We continue finding innovative ways to improve the experience of hosts, guests and local communities, like with our disruptive parties ban. While incidents are rare on Airbnb, we continually invest in new technology to reduce the risk of disruptive parties, like our reservation screening and dedicated anti-party measures for holidays like Fourth of July and Halloween. Thanks to these anti-party measures, we’ve seen an over 50 percent global decrease in the rate of party reports to us since 2020, while last year just 0.035% of reservations globally resulted in a report of a party.6 

Other tools and resources we offer to support local communities, hosts, and law enforcement include: 

  • For neighbors, our Neighborhood Support Line is available 24/7 to report concerns to us in real-time about a home they believe is listed on Airbnb
  • Hosts and guests have access to our 24-hour Safety Line, to directly reach our Safety team for urgent support, such as to report a suspected party in progress.
  • Hosts can also get a free noise sensor, which has been found to help proactively address noise issues before they start while respecting guest privacy. We provide tips on steps hosts can take to help prevent parties in their listing.
  • We work closely with law enforcement on relevant criminal investigations, and our online law enforcement portal provides a direct channel for law enforcement officers to submit valid legal requests for information to Airbnb. 

1Economic contribution metrics are generated using IMPLAN’s input-output model using multipliers from the 2022 data year (the latest available at the time of analysis) for the Houston metropolitan statistical area (MSA), and are reported in 2023 dollars. Model inputs are host earnings & guest spending, where spending is based on a survey of Airbnb guests staying in Houston.

2Estimated number of full-time, part-time and seasonal jobs supported by the output generated by Airbnb activity. This metric includes direct, indirect, and induced effects.

3Labor income includes both Proprietor Income (e.g. for small business owners that benefit from guest spending), but also Employee Compensation (e.g. cleaners, employees of small businesses). More details here.

4Estimated total tax revenue associated with economic activity generated by Airbnb stays. This includes the total value of taxes associated with hosts’ income and spending, and the economic activity stemming from guests visiting local businesses.

5Internal survey of hosts in Houston from January 1 – December 31, 2023.

6As of 2023 and compared with before this policy came into effect in 2020.