Short Term Rentals... Are they the root of our housing issues?

[Candice De]

STR... good, bad, or depends?

I live in Frisco, CO nestled between 5 ski resorts, lovely Lake Dillon, and a 1.5 hour drive to the growing metro area of Denver.

We are not alone here, but in Frisco, there is a big workforce housing issue as prices rise, so much so that our Town Mayor considered declaring a state of emergency.  https://www.cpr.org/2021/05/27...

In Summit County, and communities surrounding Frisco, there have been some recent developments in the investment space to address the workforce housing issues by limiting Short Term Rental licenses, saying that will restore more community feel and provide more supply to workers and long term renters.  

Breckenridge is proposing to stop issuing STR licenses until their proportion gets down to a smaller % of the overall housing supply. Some say this will take 3 years. This hasn't passed yet, but has had a first reading, so we will see how that plays out in the coming month. There is a lot of discussion about exceptions.

Unincorporated Summit County (like Blue River, the area just south of Breck that was the next best option) is proposing a moratorium on issuing new licenses.  They are currently proposing 12 weeks of not issuing licenses. Again, this hasn't passed but is in discussion.  

As investors, it is safe to say we don't like to see this.  As a community member, I am torn.  I hate seeing "Now Hiring" signs on every business.  

Question for all of you: Do you think Short Term Rentals are causing the problems in resort towns (or elsewhere)? Do you think limiting them will solve the problems?

[Bruce Woodruff]

No, STRs are just another business. The problem is government. Too many restrictions, fees, Etc....

Add environmental regulations in states like California and it becomes near impossible to build housing as needed.

STRs the problem? Nope.....