Weekly Regulatory Briefing (31)

🏡Top Stories This Week

• Maui County, HI: Maui County has taken a major step toward addressing its housing crisis by approving a measure to ban short-term rentals in apartment-zoned areas.

🌍 Regional Highlights

• Michigan: Michigan communities continue to grapple with the rising impact of short-term rentals as local regulations attempt to keep pace with demand.

📜 New Ordinances Approved

• South Haven, MI: South Haven’s City Council has finalized a new fee schedule to support its revamped short-term rental program, following the adoption of an updated ordinance in March.
• Kent County, DE: Kent County Levy Court has approved a measure to ease regulations on short-term rentals, removing the requirement for owners of properties smaller than five acres to live onsite.
• Saint Paul, MN: Saint Paul is making room for more short-term rentals downtown after the Board of Zoning Appeals approved a controversial variance request in a 4-1 vote.

💬 Catch Up on Discussions

• Dallas, TX: Dallas has once again been blocked from enforcing its ordinance banning most short-term rentals in single-family neighborhoods, after an appeals court denied the city’s request for a broader review.
• Woodland Park, CO: Woodland Park’s Planning Commission is refining its zoning rules to address growing short-term rental demand and housing challenges.
• Nantucket, MA: In a legal turn that could ripple across Nantucket, West Dover Street homeowners Peter and Linda Grape have agreed to stop short-term renting their property while the town appeals a Massachusetts Land Court ruling.
• Milton, DE: Milton officials are weighing new zoning regulations for short-term rentals, with the Planning and Zoning Commission proposing they be treated as a special permitted use in residential areas.
• North Myrtle Beach, SC: Two short-term rental owners in North Myrtle Beach, Lorrie White and Carlene Staley, have filed a lawsuit over the city's trash collection fees, claiming they are excessively high and violate state law.
• Kansas City, MO: As Kansas City gears up to host World Cup matches in summer 2026, city leaders across the metro are weighing whether to ease short-term rental restrictions to accommodate a projected 650,000 visitors.
• Annapolis, MD: Annapolis is the latest tourist city to reconsider the spread of short-term rentals as concerns about neighborhood change intensify.
• Nasewaupee, WI: The Town of Nasewaupee is taking a closer look at occupancy compliance among its short-term rentals, with town officials now focusing on whether STRs are exceeding limits tied to their onsite wastewater treatment systems.
• Falmouth, MA: Falmouth’s Short-Term Rental Advisory Committee held its first meeting this week, electing leadership and starting the groundwork for future regulation.
• Melrose Township, MI: Melrose Township’s debate over short-term rental rules reached a new milestone this week as residents gathered for a public hearing on a draft ordinance aimed at regulating the growing STR market.
• South Padre Island, TX: During its July 17 meeting, South Padre Island’s Planning and Zoning Commission delved into the legal tightrope of zoning changes targeting short-term rentals, especially in one section of the E District.
• Cape Coral, FL: In Cape Coral, tensions around short-term rentals are growing as residents raise concerns about loud guests and late-night parties disrupting the peace of once-quiet neighborhoods.
• Rapid City, SD: Rapid City is taking the next step toward formal short-term rental regulations, following a public open house hosted by the Community Development Department on Thursday.
• Bossier Parish, LA: Bossier Parish is moving toward formal short-term rental rules as public frustration and HOA activism push the issue into the spotlight.
• Las Vegas, NV: Las Vegas continues to grapple with a complicated short-term rental landscape, with over 13,000 listings in the area but only about 7% operating legally under local licenses.
• Ocean City, NJ: Airbnb is challenging a new 3% tax on short-term rental bookings in Ocean City, claiming the measure is unconstitutional and unfairly targets online platforms like Airbnb and VRBO.
• Dexter Township, MI: Dexter Township is weighing its next steps on short-term rental regulation after a year-long study by a specially formed committee was submitted to the Board of Trustees, accompanied by recommendations from the planning commission.
• West Fargo, ND: West Fargo is progressing toward a formal short-term rental ordinance, with city leaders discussing the issue Monday night following initial committee work focused on crafting an action plan.
• Pahrump, NV: Pahrump, Nevada is tightening regulations on short-term vacation rentals, with new rules taking effect on August 4.

🌱 Let’s Explore: Emerging Trends

As short-term rentals grow in popularity, local governments are facing new challenges in regulation. From varying policy approaches and rising legal disputes to balancing tourism with neighborhood stability, these trends highlight the complexity of managing STRs effectively.

📖 Widening Regulatory Divergence Across Communities: Across the U.S., local governments are adopting sharply different strategies to manage short-term rentals (STRs), reflecting unique regional priorities and challenges. Some municipalities, like Maui County, HI, have taken bold steps by banning STRs entirely in apartment-zoned areas to alleviate housing pressures and protect long-term residential stock. In contrast, places like Kent County, DE, are relaxing regulations to allow more flexibility for property owners, such as removing onsite residency requirements for small-lot rentals. This divergence indicates that while the STR issue is national in scope, solutions remain hyper-local, shaped by community character, economic needs, and political will.

👪 Intensifying Community Pushback and Legal Challenges: Legal conflicts and resident-led resistance are becoming a central feature of the short-term rental debate. Cities like Dallas, TX, have faced repeated judicial setbacks in enforcing their bans, as courts scrutinize the legality and fairness of local ordinances. In North Myrtle Beach, SC, property owners are suing the city over what they deem excessive trash fees that disproportionately impact STR hosts, while Ocean City, NJ is now defending a new tax on STR bookings challenged by Airbnb on constitutional grounds. These incidents reveal a contentious legal landscape where cities are frequently caught between resident demands for peace and order, the interests of STR operators, and the influence of large rental platforms.

🎒 Tourism vs. Community: Weighing the Costs of Short-Term Rentals: Communities are increasingly confronting the tension between the economic advantages of short-term rentals and the long-term effects on housing availability and neighborhood cohesion. Tourist destinations and event-hosting cities such as Kansas City, MO are considering easing restrictions to capitalize on tourism dollars. Meanwhile, other cities like Annapolis, MD and Cape Coral, FL are facing mounting resident concerns about the erosion of community identity, increases in nuisance complaints, and the displacement of long-term renters. This balancing act is prompting local leaders to reevaluate zoning, licensing, and occupancy standards.

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

Pleasant Ridge discussing short-term rental regulations

The topic of short-term rentals has been a hot one in the city of Pleasant Ridge.

C & G PublishingMike Koury

Pleasant Ridge discussing short-term rental regulations

At its July 8 meeting, the Pleasant Ridge City Commission discussed growing concerns over short-term rentals, weighing potential regulations to address resident complaints about safety, neighborhood disruption, and accountability. While no decisions were made, the city plans to hold a workshop on September 9 to further explore licensing, enforcement, and the broader impact of rentals on the community.

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