🎯 STRisker: Bulletin - Avon, CO
To Rent or Not to Rent? Avon Debates STR Expansion at The Kestrel
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To Rent or Not to Rent? Avon Debates STR Expansion at The Kestrel
The Avon Town Council is once again in the thick of short-term rental (STR) discussions, this time reviewing a request to include The Kestrel—a new 24-unit luxury townhome development—into the town’s short-term rental overlay. This overlay is Avon’s regulatory tool for determining which areas can even apply for STR licenses. Without it, STRs are a nonstarter.
The Kestrel, located outside the town core near Post Boulevard, wasn’t initially considered during the 2009 creation of the overlay. Now, the project is looking to join—with conditions. Since it sits outside the core, only 15% of its units (just three) could hold full-time short-term rental licenses. The rest could potentially apply for limited or resident-occupied options. The Kestrel's HOA is on board, even instituting a three-night minimum to prevent party-house scenarios.
Town staff supported the move calling the development a natural fit for STR activity given its resort-like nature and self-contained setup. But not everyone on the council was convinced.
Council member Lindsay Hardy offered a passionate “no,” raising concerns about over-tourism and the strain on local services. “Short-term rentals are a cultural shift—from community to commodity,” she warned, noting the lack of housing for the workforce and added stress on infrastructure like cleaning and maintenance crews.
Others, including Mayor Tamra Nottingham Underwood and Council member Ruth Stanley, felt the strict 15% cap offered enough of a safeguard. Plus, STRs in Avon are taxed—10% per rental night—with 2% earmarked for affordable housing initiatives. Council member Gary Brooks highlighted this suggesting that more STRs could ironically help fund the very housing they compete with.
Town Manager Eric Heil summed up the dilemma faced by mountain resort towns:
“We rely on the resort economy. With only two hotels, most of our lodging comes from STRs.” Heil pointed out that, given The Kestrel’s high price tags, these units aren’t likely workforce housing regardless of STR approval.
The application passed its first reading by a 5-1 vote. A final decision will be made on May 27. The takeaway? Avon continues to walk a tightrope between its economic reliance on STRs and the rising pressure for housing affordability.
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