Weekly Regulatory Briefing (25)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

🏡 Top Stories This Week

• Nantucket, MA: The Town of Nantucket is holding off on enforcing a recent Land Court ruling that prohibits short-term rentals in non-owner-occupied homes, following a lawsuit filed by Cathy Ward against her neighbors and the zoning board.
• Lafayette, LA: Lafayette Consolidated Government faces legal action from homeowners claiming its ban on short-term rentals in single-family zones is unconstitutional.
• Colorado Springs, CO: A bizarre incident in Colorado Springs is drawing fresh attention to Airbnb’s handling of safety and liability after a guest accidentally fired a gun inside a rental property causing damage to a vintage dining set and the floor.

🌍 Regional Highlights

• North Carolina: Starting July 1, North Carolina will require Airbnb, Vrbo property managers, and hotel staff to undergo human trafficking training, report suspected activity, and post awareness signage.
• Minnesota: Minnesota Realtor Connie Toupin has filed federal lawsuits against Apple Valley and Bloomington, arguing their bans on short-term rentals under 30 days violate the Fifth Amendment by taking private property without compensation.

📜 New Ordinances Approved

• Roswell, GA: Roswell’s City Council unanimously approved new rules for short-term rentals, requiring Airbnb and VRBO hosts to register with the city and undergo annual safety inspections like commercial buildings starting Jan. 1.
• Columbia, SC: Columbia’s city council has approved a one-year freeze on new short-term rental permits after a shooting at an Airbnb reignited neighborhood concerns over safety and enforcement.
• Normal, IL:The Normal Town Council approved a significant update to its short-term rental ordinance, effectively banning new non-owner-occupied rentals in R1 and R2 zones and phasing out current ones over five years.

💬 Catch Up on Discussions

• West Fargo, ND: West Fargo city commissioners are advancing a proposed ordinance that would tighten local rules on short-term rentals, including a key provision limiting eligibility to primary residences.
• Seaside Heights, NJ: After a violent and overcrowded Memorial Day weekend that overwhelmed local police and resulted in 98 short-term rental law violations, Seaside Heights is moving swiftly to tighten enforcement.
• Burlington, VT: The Vermont Supreme Court has limited how Burlington short-term rental owners can challenge a 2022 ordinance restricting STRs to owner-occupied lots.
• Juneau, AK: Juneau’s short-term rental task force has concluded with a slate of recommendations focused on adjusting rules and studying the economic impact of STRs, but not limiting the number of units per owner.
• Madera County, CA: Madera County is advancing a new short-term vacation rental ordinance aimed at filling regulatory gaps and establishing clear operational standards for Airbnb- and VRBO-style properties.
• Dallas, TX: Dallas residents living near short-term rentals say the city’s stalled ban is failing to protect them from recurring party house chaos. 
• Steamboat Springs, CO: In Steamboat Springs, short-term rental owners are pushing back against a proposed $3,100 annual vacancy tax, calling it excessive and potentially damaging.
• Doña Ana County, NM: Doña Ana County is ramping up enforcement of its short-term rental and lodgers' tax ordinances notifying noncompliant property owners that they face permit suspension or cancellation if they don’t comply by July 16.
• Bay County, FL: Bay County is overhauling its short-term rental system after discovering internal errors that led to under-collection of fees and compliance issues.
• Chicago, IL: The Chicago City Council's License and Consumer Protection Committee has advanced a controversial ordinance that would give aldermen sweeping new authority to block short-term rentals by precinct, bypassing the current petition process that requires community approval.
• Bellingham, WA: Two property owners in Bellingham have taken legal action against the city, claiming its short-term rental rules infringe on their constitutional rights.
• Union, ME; Union voters rejected a proposed short-term rental ordinance during their June 10 Town Meeting, voting 295 to 257 against a measure that would have required registration and town inspections.
• North Myrtle Beach, SC: North Myrtle Beach held a packed community feedback event  to gather input from residents – excluding STR owners, on how short-term rentals are impacting neighborhoods.
• Francis City, UT: Francis City is poised to introduce a new permitting system for short-term rentals as part of a broader overhaul to its zoning code.
• Ludlow, VT: Ludlow’s Selectboard continued debating a proposed short-term rental registry during their June 3 meeting, with Planning Commission Chair Terry Carter outlining updates to occupancy rules now tied to fire safety codes based on bed spaces.
• Arlington, TX: As Arlington gears up to host nine World Cup matches in 2026, interest in short-term rentals is rising, but local experts urge potential hosts to be realistic.
• Jackson County, MO: Kansas City short-term rental hosts are facing steep property tax increases after Jackson County reclassified their homes as commercial properties.
• Palm Springs, CA: Palm Springs is set to tighten short-term rental oversight with new rules recommended by its Administrative Appeals Board. 
• St. Charles, IL: St. Charles is preparing to regulate its short-term rental market following a June 9 city meeting where officials highlighted a surge in STR listings and the lack of existing oversight.
• Honolulu, HI: Honolulu’s Department of Planning and Permitting has rolled out a new Short-Term Rental Awareness Campaign aimed at helping visitors and residents identify illegal vacation rentals on Oʻahu.
• Clayton, MO: Clayton planning officials are weighing a proposal that would allow short-term rentals in a limited number of downtown buildings under tightly controlled conditions.
• Willowick, OH: Willowick enforces short-term rental activity through a licensing system tied to its single-family residential rental ordinance.

🌱 Let’s Explore: Emerging Trends

Cities across the U.S. are rapidly evolving their approach to short-term rentals, responding to mounting public pressure, legal scrutiny, and safety concerns. These emerging trends reveal how communities are drawing new lines around ownership, accountability, and enforcement in the STR landscape.

⚖️ Legal Battles Are Reshaping the Regulatory Landscape: As local governments push forward with stricter short-term rental (STR) ordinances, a growing number of property owners and real estate professionals are fighting back through the courts. In Minnesota, a federal lawsuit is challenging Apple Valley and Bloomington’s ban on rentals under 30 days, alleging a violation of the Fifth Amendment's takings clause. Similar claims are surfacing in Bellingham, WA, and Lafayette, LA, where plaintiffs argue that local restrictions unfairly strip them of property rights without compensation. Meanwhile, Nantucket, MA, is delaying enforcement of a recent Land Court ruling against non-owner-occupied STRs while facing internal litigation over zoning interpretations.

🚑 Safety and Compliance Crackdowns Gain Momentum After Public Incidents: Cities are ramping up enforcement of STR regulations, often in direct response to violent events, overcrowding, or local safety concerns. Columbia, SC, enacted an emergency moratorium on new permits following a fatal Airbnb shooting, while Seaside Heights, NJ, is tightening oversight after a disorderly Memorial Day weekend yielded nearly 100 STR violations. Roswell, GA, is introducing annual inspections by the fire marshal to align short-term rentals with commercial building codes, and Bay County, FL, is overhauling its compliance systems after discovering fee collection issues.

🏠 Owner-Occupied Rentals Emerge as the Preferred Model: A growing number of cities are gravitating toward policies that allow short-term rentals only in owner-occupied or primary residences – a move designed to reduce absentee ownership, preserve neighborhood character, and protect local housing stock. Normal, IL, has approved a ban on new non-owner-occupied rentals in residential zones, with existing operators being phased out over five years. West Fargo, ND, is considering a similar rule that would limit eligibility to primary residences. Burlington, VT, and other cities are also tightening definitions of eligible STR properties to favor full-time residents.

📅 Future Meetings and Public Hearings/Comments:

• Penn Yan, NY: The board advanced multiple infrastructure projects, approved the 2025–26 budget, and scheduled a June 25 joint public hearing on a proposed annexation involving the Yates Cultural and Recreational Resources group.

• Clayton, MO: The Plan Commission postponed a vote until July 7 to clarify language aimed at preventing nuisance issues such as large parties.

🖱️ Click of the Week: See What Everyone’s Reading

Seaside Heights boardwalk curfews and backpack bans: how town aims to prevent chaos

Public hearings on the new Seaside Heights ordinances are scheduled for June 18.

Asbury Park Press, Asbury Park Press

Seaside Heights boardwalk curfews and backpack bans: how town aims to prevent chaos

In response to widespread chaos over Memorial Day weekend including nearly 90 arrests and multiple stabbings, Seaside Heights is implementing stricter rules including a backpack ban on the boardwalk, earlier closures, and significantly higher fines for short-term rental violations.

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