Short-term rental (STR) activity in the Kansas City region generated an estimated $624 million in total economic output, supported approximately 4,000 jobs and produced $157 million in labor income in 2025, according to a new study commissioned by KCRAR and conducted by RRC Associates. The study spanned six counties and multiple municipalities with varying regulatory frameworks, offering a data into how STRs are shaping local housing and economic trends.
The study found that visitors staying in STRs contributed roughly $375 million in spending across accommodations, restaurants, retail and entertainment, while also generating an estimated $34.3 million in state and local tax revenues.
As part of the broader lodging ecosystem, STRs now represent about 11% of combined hotel and short-term rental inventory, functioning not as a replacement for hotels but as a complementary option that expands capacity and provides flexibility for travelers, particularly as the region prepares to host major events such as the 2026 FIFA World Cup. Since 2019, STR inventory in the Kansas City metro has increased by approximately 125%, reaching about 4,370 active units as of early 2026. Yet despite this growth, STRs account for only about 0.4% of the region’s total housing stock—roughly one unit for every 243 homes.
The research underscores the local, community-based nature of the STR market across the region. Nearly 90% of STRs are owned by individuals or entities based in the Kansas City area, and 95% of operators manage just a single property, indicating that large institutional ownership plays only a minor role.
One of the most closely watched questions is whether STR growth is contributing to rising housing costs. While home values and rents have increased across the Kansas City region, the study found no significant relationship between STR density and housing prices at the municipal level. In fact, housing costs rose across communities regardless of their level of STR activity, pointing instead to broader forces—such as population growth, interest rates, construction costs and long-term housing supply constraints—as the primary drivers of affordability challenges. The findings suggest that STRs, given their relatively small share of the overall housing stock, are unlikely to be a major determinant of regional housing outcomes on their own.
The study also captures the voices of residents across the region through a comprehensive public opinion survey. Residents widely recognize the economic and tourism benefits STRs bring, including support for local businesses and cultural amenities, while also acknowledging concerns related to neighborhood impacts. Overall, respondents favored clear rules, accountability and reasonable regulation rather than overly restrictive limits or outright bans.
“This is one of the most comprehensive short-term rental studies conducted anywhere in the country and it tells an incredibly positive story about our region,” said James Toy, Senior Vice President of Government Affairs for KCRAR. “The data clearly shows us that short-term rentals are creating jobs, generating significant economic activity and supporting local property owners, all while representing a very small share of the overall housing market. As our region continues to grow and attract national and global attention, this research provides a strong foundation for balanced, fact-based policy decisions that support both our communities and our economy.”
