Daily Regulatory Notes 07/21/2025
Cities address STRs. Los Angeles, CA sues Airbnb; Jacksonville Beach, FL reviews enforcement; Stowe, VT discusses cap; Sumner County, TN advances ordinance; Leyden, MA approves bylaws; Rapid City, SD schedules public open house. READ MORE.
The city of Los Angeles is suing Airbnb for allegedly enabling price gouging during the January wildfires that triggered a state of emergency.
According to the city, Airbnb’s automated smart pricing system hiked rental prices beyond the 10% legal threshold, affecting at least 2,000 listings despite warnings and a later system shutdown. The lawsuit also challenges Airbnb’s identity verification system, alleging it misleads renters into trusting unverified or fictitious hosts.
Jacksonville Beach is feeling the pressure of a booming short-term rental market, with residents like Ashley Kelm warning that the city’s character and housing accessibility are eroding fast.
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With 1,400 active STRs—nearly five times the available homes for sale—many blame investor demand and vacation rentals for the sharp rise in housing costs and loss of permanent neighbors. Locals are increasingly urging lawmakers to restore local authority, warning that without stronger tools to manage short-term rentals, beach towns like theirs may become unlivable for everyday families.
Stowe officials are moving closer to placing a cap on short-term rentals as new data from the town’s rental registry reveals that a majority of properties are owned by out-of-town investors.
The planning commission’s subcommittee met June 25 to align on next steps, with members supporting a cap near the current total of 891 STRs and exploring policy tools like inclusionary zoning, affordable housing incentives, and updates to zoning bylaws. While a development moratorium was ruled out, interim zoning changes may provide a quicker route to regulation ahead of formal town-wide planning. The full planning commission will meet on July 21 to dig deeper into the housing report and finalize its approach.
Trying to keep up with STR regulations across multiple cities and states? STRisker's News Tracker makes it easier than ever. Filter by location, search a comprehensive database, and sort by impact level—this tool helps you focus on what matters most.
Sumner County officials are once again trying to advance a short-term rental ordinance for the county’s unincorporated areas, where no regulations currently exist—unlike neighboring cities Gallatin and Hendersonville.
A draft modeled after Wilson County’s rules—requiring a 24/7 contact, a 2-acre minimum lot size, and complaint-based permit renewal denials—has stalled multiple times at the planning commission. Residents have raised ongoing concerns about noise, crime, and disruptive behavior, but Commissioners Don Schmit and Ben Harris say those worries are being ignored. It’s still unclear whether the measure will be added to the agenda for the planning commission’s August 12 meeting.
In a two-hour town meeting, Leyden voters signed off on new bylaws regulating short-term rentals and accessory dwelling units. A key article now requires a special permit for any STR or event venue use, but after much back-and-forth, residents trimmed the original list of 13 permit conditions down to three mandatory ones, with the rest left to Planning Board discretion.
Concerns about vague definitions like “loud music” and fears of neighbor-driven pushback led to compromises on flexibility. Meanwhile, ADU rules were updated to allow one 900-square-foot unit by right, and a second—up to 1,200 square feet—with a permit. Basement spaces were excluded from floor area calculations to encourage internal conversions rather than new construction.
Rapid City officials are hosting a public open house on July 24 to share and gather input on a proposed ordinance aimed at regulating vacation home rentals in city neighborhoods.
Developed from months of community engagement and research, the draft rules reflect recommendations by a steering committee and are expected to head to the Planning Commission and City Council later this summer. Planning staff encourage residents to participate in shaping the final version and say additional public comment opportunities will follow during the hearing process. Final hearing dates are expected to be announced shortly.
In case you missed it:
Genelaine Urbano
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