Daily Regulatory Notes 10/16/24
Columbia, TN
Columbia’s short-term rental (STR) market saw a sudden crackdown in August, as the city enforced long-standing but previously ignored zoning laws. Ordinance 4400 prohibits STRs in residential zones unless the owner lives on-site, and enforcement has hit property owners hard.
The abrupt shutdown, driven by noise complaints, has sparked confusion among rental owners, who argue STRs support tourism, local jobs, and neighborhoods. A public forum on October 23 (5-6 p.m. at City Hall) will address these issues, as city officials consider revising the laws in response to concerns over housing affordability, neighborhood integrity, and property rights.
The city is accepting public comments and recommendations through a survey. Comments will be presented to the Planning Commission on December 4th.
Before 2022, the city regulated STRs like hotels under zoning ordinance 3638 (before 4400 recognized them as a separate category), and gave out permits to owners who applied for one. Keltner told Main Street Maury that the city only shut down rentals that had been established since 2022 and were operating without permission and out of zone. Still, the abrupt enforcement of city laws understandably caused a great deal of confusion. Rental owners were upset at overnight enforcement without prior notice, and at the prospect of facing upkeep costs and property taxes on the rentals after at least two months without income from them. - Columbia citizens prepare to speak on short-term rental laws at Oct. 23 forum - Main Street Media of Tennessee
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Birmingham, AL
Birmingham Planning Commission's Zoning Advisory Committee (ZAC) took a decisive step last night, voting to ban short-term rentals (STRs) in residential neighborhoods.
This comes after a sharp rise in Airbnb-style rentals, now numbering over 800 in the area, and mounting concerns from residents. The decision, which follows months of public debate, introduces new regulations: defining short-term rentals, requiring permits and compliance to safety regulations, along with a stipulation that property owners or managers live within 10 miles of the STR.
While these provisions faced little resistance, the residential ban was a surprise to many. The proposal now moves to the City Council for further and potential revisions before final approval.
'The Zoning Advisory Committee's unanimous vote tonight to remove short-term rentals from all Birmingham residential zone districts was a big and very welcome surprise. After the residents of Birmingham have spoken overwhelmingly in opposition to STRs in residential areas at the last 3 public hearings, I was beginning to think no one was listening. The ZAC has truly put our people first!' Valerie Abbott, Birmingham City Councilor. - Birmingham zoning committee votes to prohibit short-term rentals in residential areas - Bham Now
Explore the proposed Birmingham Zoning Changes here.
Marblehead, MA
Marblehead is facing a surge in short-term rentals, doubling from 100 listings in 2021 to 231 in 2024, raising concerns about housing availability and neighborhood disruption. Local residents and officials are debating how to manage this influx, with some pushing for tighter regulations, including capping rentals, enforcing safety measures, and distinguishing between owner-occupied and investor-run properties.
As tensions rise the community is looking at how best to balance economic gain with housing needs and neighborhood quality. The town has recently imposed a 6% room tax on short-term rentals.
Read more: HOUSING: Short-term rentals surge 131% in Marblehead
West Stockbridge, MA
The West Stockbridge Planning Board has scheduled a public hearing on January 6, 2025, to discuss proposed regulations for short-term rentals (STRs), which are currently not regulated.
Check out the full proposed ordinance here.
Additionally, West Stockbridge plans to explore another draft that aims to regulations accessory dwelling unites (ADUs) or rentable living spaces. The board will delay finalizing regulations for accessory dwelling units (ADUs) until after the state’s Affordable Housing Act goes into effect in February 2.
Read the full text here.
New York
One year after New York City enforced its Local Law 18, the anticipated benefits for the housing market remain unclear. Local Law 18, also known as the Short-Term Rental Law, was enacted in September 2023 to regulate short-term rentals, particularly those listed on platforms like Airbnb.
Active short-term rentals have dropped dramatically, from over 22,000 to under 5,000, while hotel prices have surged by 7%. However, the median rent in the city increased only slightly by 0.5%, and long-term rental inventory grew by just 3.4%, indicating limited availability despite the ban.
Critics, including Airbnb, argue that the law is too broad and ineffective in addressing housing affordability, asserting that increasing housing supply is the true solution. Moreover, many former Airbnb hosts are now renting their units illegally, further muddying the law's impact on the market.
Theo Yedinsky, vice president of public policy at Airbnb, also has reservations, telling BI that he thinks NYC's focus on short-term rentals is misguided. "I don't think Local Law 18 should have passed," he said. "I think the data is demonstrating that it's ineffective.” - NYC's short-term rental ban slashed Airbnb listings. A year later, it's unclear if it's made housing more affordable. - Business Insider
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