- The pandemic sparked a boom in short-term rentals, leading some cities to worry about oversight.
- Among “Airbnbust” fears, some experts say regulation may be key to stopping boom-and-bust cycles.
- These 26 locations across North America are looking to rein in Airbnbs and short-term rentals.
Following the end of COVID-19 pandemic lockdowns, the short-term rental industry experienced a period of record strength.
In 2021, Airbnb reported an 85% increase in average earnings for hosts. By 2022, there was an industry-record 1.4 million listings available nationwide, according to the analytics site AirDNA. Airbnb had its first ever profitable year that year, taking in $1.9 billion.
Now, however, the industry sits at a crossroads. Some short-term rentals are doing better than ever, while other owners complain of dried-up bookings and an encroaching “Airbnbust”. Some experts note that localities with robust regulations of short-term rentals provide a solid environment for hosts by capping the number of permits and preserving the profits of existing Airbnb owners.
At the same time, some locals in popular travel spots have rallied against short-term rentals, saying their mounting presence in their neighborhoods can lead to a variety of issues, from mundane annoyances (noisy parties) to substantial challenges (they make it more difficult for regular people to buy homes).
Cities and towns are caught in the middle, trying to balance these concerns with the revenue that vacationers bring in and the rights of property owners. From the beaches of California to the mountains of Vermont, communities are grappling with regulations that could determine the future of short-term rentals in their area.
Some local governments, like in Honolulu, have passed regulations like banning rental stays under 90 days, while others, like in Aspen, Colorado, have proposed new taxes on owners. Some cities have simply called timeout: Chattanooga, Tennessee, paused new applications for non-owner-occupied units as it considered short-term rentals’ future there.
An Airbnb spokesperson said in an emailed statement in 2022 that “short-term rentals have been part of the fabric of popular vacation destinations such as these for decades, and our goal is to work with communities on balanced rules that support local tourism economies, provide certainty and clarity for Hosts, and address community concerns.” Airbnb also maintains a page on its site dubbed City Portal, which has resources for local governments.
Here are 26 locations in the US and Canada where residents and local politicians are fighting back against short-term rentals. They are presented in alphabetical order.
This story, originally published in May 2022, was updated in April 2023.
Are you trying to pass regulations to limit short-term rentals? Are you a short-term rental owner who wants to talk about your experience with regulations? Email reporter Dan Latu at [email protected].
