Daily Regulatory Notes 09/23/2025
Cities address STRs. Connecticut prepares for World Cup; New York City, NY reviews enforcement; Nantucket, MA schedules meeting; Livingston, MT proposes rules; Reading, PA introduces ordinance; Sausalito, CA approves first reading. READ MORE.
Connecticut
With tickets now on sale for the 2026 FIFA World Cup, the rush to prepare for millions of visitors is highlighting the role of short-term rentals and the rules that govern them.
Roughly 400,000 guests are expected to book Airbnbs during the tournament, with cities like Boston, New York, and Philadelphia bracing for spillover demand into nearby areas such as Connecticut. In places like Kansas City, where hotel capacity is limited, community workshops are training hosts on best practices from pricing to insurance and guest safety.
New York City’s short-term rental market has collapsed under Local Law 18, which requires hosts to live on-site, cap guests at two, and register with the city. AirDNA reports listings have plunged 83% since last August, leaving just 4,000 active rentals by May.
Of more than 6,300 registration applications, only about a third have been approved, forcing visitors into hotels where rates have now topped $300 a night. While city officials say enforcement is curbing illegal rentals, critics argue the rules haven’t eased affordability, with rents still climbing and housing supply lagging far behind demand.
Nantucket voters will face a high-stakes Special Town Meeting this fall after resident Brian Borgeson secured enough signatures to place an article on the warrant legalizing short-term rentals as a principal use across the island.
The push comes just weeks after a Land Court decision declared unhosted rentals under 31 days unlawful under current zoning, a ruling now under appeal but one that has intensified the need for clarity. Borgeson’s proposal is broad, seeking to add definitions for both STRs and long-term rentals, but Planning Board chair Dave Iverson is drafting a competing plan with seasonal limits and exemptions for hosted stays.
Livingston may soon join other Montana cities in requiring licenses for short-term rentals, as officials debate a system focused on safety and cost recovery rather than restricting where rentals can operate.
Proposals include requiring smoke detectors, carbon monoxide alarms, and potentially evacuation maps or parking plans, with leaders stressing the intent is to make STRs safe and accountable while still accessible for operators. The issue is unfolding alongside a broader zoning review aimed at addressing demand for 85 new housing units a year.
Reading City Council holds a public hearing on a proposed zoning amendment that would, for the first time, formally regulate short-term rentals like Airbnb and Vrbo.
Rentals in R-1 and R-2 neighborhoods would require zoning variances, and all operators would need permits and licenses, though fees are still being set. The proposal also creates distance buffers between properties—1,000 feet for detached homes and 500 feet for semis—to prevent clustering. Council introduces the ordinance later that night, setting up a vote for adoption in October.
Sausalito takes a tougher stance on code enforcement, with City Council unanimously approving on first reading an overhaul that raises fines, streamlines hearings, and gives staff new tools to crack down on illegal short-term rentals.
The update modernizes decades-old provisions, aligning penalties with state law and increasing maximum daily fines to $1,000. For STRs, where rentals under 30 days are already banned, the changes go further by prohibiting advertising and raising fines from $1,500 to $3,000, a move officials say will make enforcement easier to track online.
In case you missed it:
Genelaine Urbano
Crystel
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