2024 Year-end/Q4 Highlights
Check out the 2024 Short-term Rental Highlights across the U.S.
Policymakers, councils, and local organizations have spent the year debating and crafting rules to address the challenges and opportunities short-term rentals bring. From balancing the interests of property owners and renters to addressing the concerns of neighbors, 2024 has been a year of progress and innovation in shaping the future of short-term rental policies.
Let's look back at some significant changes that took place regarding short-term rentals in various locations across the U.S. ποΈ
π Michigan
In 2024, several West Michigan communities implemented key changes to short-term rental (STR) regulations, reflecting growing concerns over tourism impacts and resident complaints.
- π Muskegon introduced a temporary moratorium in March, later replaced in October by caps and rules governing STR transferability.
- β Park Township successfully banned STRs in residential zones following a court-backed legal battle.
- π Spring Lake Village issued a six-month moratorium set to expire in May 2025, and its township confined STRs to designated zones.
- π Ferrysburg addressed community grievances by proposing new software, increasing inspection fees, and enforcing a seven-day minimum stay.
- πΆ Putnam Township enacted an ordinance banning STRs in single-family homes and lake areas, mandating operators cease bookings by June 21, with existing reservations allowed only until Labor Day.
ποΈ New York
Meanwhile, the state of New York made significant strides in short-term rental (STR) regulation in 2024, with the state passing a landmark short-term rental registry law on December 23. This law mandates booking platforms to report rental activity and taxes quarterly to the state and participating counties, aiming to address housing shortages while generating untapped revenue. Effective April 21, 2025, the law is seen as a critical step in balancing housing affordability with economic benefits.
In local developments:
- π Saratoga Springs introduced new STR regulations, including compliance with state insurance requirements and a simplified licensing process.
- π§ββοΈ Olean, NY, adopted a 5% occupancy tax for STRs, effective in 2025, after state authorization.
- New York City considered relaxing its strict STR laws, which were introduced under Local Law 18, by allowing rentals in one- and two-family homes. Additionally, Mayor Eric Adams signed the "Safe Hotels Act," establishing new safety and staffing requirements for NYC hotels, including front desk presence, security measures, and employee training.
π South Carolina
Several key short-term rental (STR) regulations were enacted in South Carolina. Namely:
- π Port Royal introduced strict rules capping STRs at 6% of residential units in each of its five districts, aiming to control the growth of vacation rentals.
- π¨οΈ Myrtle Beach finalized a short-term rental overlay ordinance following extensive public feedback and also banned the conversion of beachfront motels into apartments.
- π Lexington County, set to enforce new STR rules starting in January 2025, introduced measures to address noise and parking concerns, marking a significant shift in how STRs are managed across the region.
βοΈ North Carolina
In the state of North Carolina, the Short Term Rental Alliance introduced a matchmaking service to help displaced residents of Western North Carolina following Hurricane Helene. This service allows STR owners to register online and receive notifications about tenants seeking temporary housing with specific requirements like size, budget, and pet-friendliness.
Locally, Matthews, NC, revised its short-term rental ordinance, classifying STRs under bed-and-breakfast regulations. The update limits future STR operations to room-only rentals within homes, disallowing whole-house rentals. The new text amendments to the Unified Development Ordinance were approved by the Matthews Board of Commissioners, with the ordinance taking effect on November 14, 2024, and requiring full compliance by January 14, 2025.
πͺ Oregon
In Oregon, Portland and The Dalles took significant steps to regulate short-term rentals (STRs) in 2024.
- π Portland's City Council unanimously passed stricter safety requirements for STRs in commercial zones, mandating the installation of sprinkler systems and fire walls to improve safety standards.
- ποΈ The Dalles City Council approved updates to its transient lodging tax (TLT) and STR ordinances during its November 25 meeting. The revised TLT ordinance keeps the 8% tax rate but modernizes its administration, increases late payment interest to 3%, and raises the tourism fund allocation to 55%.
π£οΈ Ohio
In Ohio, West Chester Township and South Euclid both took action in 2024 to regulate short-term rentals (STRs).
- π West Chester Township approved a temporary moratorium on STRs while officials work on updating zoning regulations to address the practice.
- βΌοΈ In South Euclid, the City Council enacted a six-month moratorium on short-term home rentals following a shooting at an Airbnb property on Felton Road that resulted in three people being injured.
π Kentucky
In Kentucky, several cities enacted new short-term rental (STR) regulations in 2024. Local developments include:
- π§βπ€βπ§ Lexington introduced significant restrictions starting December 12, capping STRs at 2% of housing units within 1,000 feet of residential zones and limiting hosted occupancy to 10 people, among other rules.
- π³ Frankfort unanimously voted to implement zoning and licensing regulations for STRs, including a cap on non-owner-occupied rentals in historic and special districts.
- ποΈ Owensboro revised its transient room tax ordinance, focusing on short-term rental platforms like Airbnb, which has not remitted taxes despite multiple requests.
- π² Walton's City Council approved a new ordinance requiring STR owners to pay a $500 annual fee, significantly up from the original $15, and increased violation penalties from $25 to $100.
π Illinois
In Illinois...
- π Rockford has implemented new regulations for short-term rentals (STRs), which include limitations on parking, a ban on large gatherings, and a requirement for owners to obtain a permit.
- π Normal has voted to impose a six-month moratorium on new STRs, effective December 1, 2024. Existing STRs must obtain a business license by the end of the month. The city is considering additional measures such as owner-occupancy requirements, minimum stay lengths, and density limits. A permanent solution may be implemented before the moratorium ends on June 1, 2025.
π Delaware
Delaware will introduce a 4.5% lodging tax on short-term rentals starting Jan. 1, 2025, impacting property owners and rental platforms like Airbnb. Under the law signed in September, all operators and accommodations intermediaries must obtain an annual $25 business license and display the license number on marketing materials.
π Vermont
In Vermont, several municipalities are introducing new short-term rental (STR) regulations.
- π Burlington's Superior Court has affirmed the cityβs authority to impose STR rules, which include requirements for property owners to live on-site and fines for non-compliance.
- π Stowe has approved a new short-term rental registry that will require property owners to pay a $100 fee per unit, starting in May 2025. Additionally, West Windsor has enacted a new STR ordinance, requiring operators to obtain a license, pay annual fees, and provide documentation to comply with state health, safety, and tax regulations. This ordinance will take effect on May 1, 2025.
π Georgia
In Georgia, two cities are implementing new short-term rental (STR) regulations.
- π Tybee Island is preparing for significant changes to its short-term vacation rental (STVR) permitting process in 2025. Starting January 1, current STVR permit holders must reapply and meet stricter criteria, including proving they had at least 60 rental days in the previous year. The reapplication period runs until March 31, 2025.
- π Peachtree City has adopted a new STR ordinance after years of deliberation. The ordinance, effective January 1, 2025, requires permits and inspections for STR operators and focuses on maintaining the safety and character of residential neighborhoods.
π Wisconsin
In Wisconsin, Lake Geneva and Eau Claire took significant steps in 2024 to regulate short-term rentals (STRs).
- βοΈ Lake Geneva's City Council approved updates to its STR ordinance, introducing clearer penalties and stricter licensing requirements.
- πΎ Meanwhile, Eau Claire amended its zoning code on December 10, removing duration limits on minimum stays and annual caps, alongside other regulatory changes to better manage the growth of STRs in the city.
π΄ California
In California, there has been a growing push for stricter short-term rental (STR) regulations in 2024, driven by concerns over housing availability and community impacts.
Monterey County is facing a lawsuit from the Monterey County Vacation Rental Alliance over new STR restrictions. Other cities, like Del Mar, have capped STRs at 5% of housing stock, while Marin County has begun licensing STRs. Pacifica has banned non-hosted STRs in multi-family units and limited them to 90 days per year. Mono Countyβs Measure K will raise the Transit Occupancy Tax from 12% to 15%, effective December 13, 2024.
Meanwhile, Simi Valley is moving toward regulating STRs to address neighborhood concerns, and Escondido is considering a ban on STRs near schools. Ventura has approved an ordinance limiting vacation rental permits to protect housing and neighborhood character. Fresno City Council has entered a Voluntary Collection Agreement with VRBO for collecting Transient Occupancy Tax.
π§’ Texas
In Texas, several cities have introduced new regulations for short-term rentals (STRs) in 2024.
- π Magnolia City Council approved an ordinance requiring STR operators to obtain permits within 90 days.
- π In Houston, the city is advancing STR regulations due to a 19% increase in listings in some neighborhoods since 2019.
- β Georgetown has set a requirement for all Airbnb and Vrbo operators to obtain city approval before renting, starting November 1.
- π·οΈ Lastly, Denton City Council approved restrictions, capping STRs at 1,000, limiting the number of certificates to two per parcel, and requiring a 100-foot separation between properties. Properties registered by January 1 will be grandfathered under the new rules.
π Alabama
In Alabama, Fort Payne and Athens introduced new short-term rental (STR) regulations.
- π Fort Payne adopted Ordinance 2024-08, which requires property owners in R1 residential zones to obtain conditional use approval from the city's zoning board, allowing for community input on rental proposals. This ordinance will take effect in June 2025.
- π¬ Athens introduced an ordinance requiring STR operators to obtain a business license and pay a lodging tax. The ordinance applies to entire homes or apartments, excluding room rentals, and currently affects around 10 properties in the city.