STR Regulations in North Carolina

[Mitch Davidson]

If you invest in markets like Asheville NC, or Wilmington NC, you may have heard that there are bills in the North Carolina House and Senate which propose to end local governments’ ability to regulate STRs. Such local governments have argued that their regulations are aimed at helping their affordable housing problems. Some State politicians have taken issue particularly with Wilmington's one-house and lottery approach. It is unclear whether they would like to later propose statewide regulations for short-term rentals, but they intend to first remove regulatory power from local governments. Two bills, HB829 and HB911, nearly identical, have passed the State House already. A third bill, HB401, would address the issue from a zoning perspective. This bill is largely about mixed-use residential zoning (i.e., it proposes to force local governments to allow any type of residential structure on a lot that is zoned residential in any way), but has a statement about "vacation" rentals as well. This bill has not passed the house yet.

Below are links to the bills, as well as their status.

HB911:

https://trackbill.com/bill/north-carolina-house-bill-911-regulatory-reform-2-0/2116869/

https://fastdemocracy.com/bill-search/nc/2021/bills/NCB00009991/

HB829:

https://trackbill.com/bill/north-carolina-house-bill-829-private-residential-rentals/2109087/

https://fastdemocracy.com/bill-search/nc/2021/bills/NCB00009910/

HB401:

https://trackbill.com/bill/north-carolina-house-bill-401-increase-housing-opportunities/2085545/

https://fastdemocracy.com/bill-search/nc/2021/bills/NCB00009106/

[Ben Szafran]

@Mitch Davidson thanks for posting. Wilmington has been in limbo for over year and a half. I have seen many airbnbs crop up as people feel like market has loosened up even though not official. What Wilmington did was over reaching-good for a few people with permits but also created a house shortage. This became evident after hurricane relief, increased migration, movie industry crews and vacationers. Hope this clears in homeowners favor soon.