Punishing the Innocent

In early September Grapevine became the latest Texas city to outlaw short-term rentals (STRs), such as Airbnb. The city’s mayor defended the prohibition, saying,

It’s just not appropriate.

We spent hours zoning this town, protecting single family homes and putting businesses along the highways. We’ve got a well-planned town. If you love this town, we need to protect it.

Protecting neighborhoods is a common mantra among the advocates of land-use regulations. But what does “protecting neighborhoods” really mean?

Proponents of protecting neighborhoods want us to believe that the alleged well-being of the neighborhood is the standard of value. If this means restricting the freedom of individual owners in the neighborhood to use their property as they think best, so be it. The individual is to subordinate his desires and interests to the group.

Critics of STRs claim that they are nothing more than party houses that disrupt a neighborhood. While this is certainly true of some STRs, the proper solution isn’t a complete ban. The proper solution is to prosecute the guilty parties.

Banning STRs punishes owners who do not operate party houses. They are prohibited from using their property as they desire, not because they have done anything wrong, but because other STR owners have acted irresponsibly. It is a gross injustice to punish the innocent. But that is what invariably occurs when the group serves as the standard of value.