The vacation rental industry is intensifying its lobbying efforts to influence U.S. lawmakers as cities across North America increasingly implement restrictions on short-term rentals, citing concerns about housing affordability and neighborhood quality of life.
In 2024, the growth of short-term rental supply has slowed in 17 of the 30 largest cities in North America, according to KeyData, a vacation rental analytics firm. This trend has prompted major players like Booking Holdings and Expedia Group's VRBO, as well as smaller operators, to significantly increase their lobbying expenditures to prevent further local restrictions that could limit the availability of rental properties.
Cities such as New York, Los Angeles, and Montreal have already enacted measures to curb the expansion of short-term rentals, responding to resident complaints that these rentals contribute to rising housing costs and degrade the quality of life in neighborhoods. Richard de Sam Lazaro, senior director of government affairs at Expedia, emphasized the industry's willingness to collaborate with local lawmakers: "We're really eager to work with those local lawmakers to understand what their priorities are, but there are some opportunities to strive for stability and consistency in state law."
In the first half of 2024, vacation rental companies spent $1.4 million on lobbying, a 13% increase from the previous year, as they ramp up efforts in key states like Florida, Colorado, and Arizona. Critics argue that these expenditures are just the beginning. Murray Cox, a housing activist and founder of Inside Airbnb, a data platform tracking vacation rentals, said, "That's the tip of the iceberg compared to how much staff they have and who they are employing to be so-called organizers."
Cox was instrumental in drafting legislation in New York City that took effect in September 2023, leading to a 54% drop in short-term rental listings for stays of less than 30 days, according to AirDNA, a short-term rental analytics firm. As a result, average hotel prices in New York rose by 5.6% in the first half of 2024, compared to a 1.8% national increase, according to Costar, a commercial real estate analytics firm.
Similarly, in British Columbia, supply fell by 9.4% just a month after regulations restricting rentals to primary residences were passed in 65 communities. This led to a 9% increase in daily hotel rates across the province, as reported by AirDNA.
The slowdown in vacation home purchases due to higher interest rates and elevated home prices further exacerbates the industry's challenges, according to Melanie Brown, director of data insights at Key Data. Despite these hurdles, the industry continues to push back against local restrictions through increased lobbying efforts.
Expedia's lobbying expenditures rose by 58% in the first half of 2024, reaching $380,000, as the company worked with Arizona legislators on regulations that prohibit localities from enacting outright bans on short-term rentals. Booking Holdings increased its lobbying spend by 61% to $570,000 in the same period.
Local vacation associations and professional property managers are also pooling resources for lobbying efforts. In Florida, the Florida Professional Vacation Rental Coalition successfully persuaded Governor Ron DeSantis to veto a bill in June that would have allowed local officials to revoke or refuse to renew short-term rental licenses. DeSantis labeled the bill as "bureaucratic red tape."
Steve Milo, Steering Committee Chair of the coalition and CEO of VTrips, emphasized the strategic nature of these efforts: "You pay to have access. It is not by chance that you have such a pro-vacation rental situation in the state of Florida." Milo also noted that property managers across Southern states are sharing strategies to bolster their lobbying efforts.
Analysts do not yet see these regulations as a significant threat to the viability of major players like Airbnb. The company noted that 80% of its top 200 markets by revenue are already regulated, and while there is a decline in active listings, Airbnb attributes this to efforts to remove lower-quality properties. Richard Clarke, an equity analyst at Bernstein, remarked, "It would be different if we saw a whole country or even a whole major U.S. state change the rules."
Airbnb's lobbying expenditures in 2024 are down 29% to $470,000, and the company does not expect full-year expenditures to differ significantly from 2023's $1.03 million, as it focuses on global expansion. However, regulatory challenges are not limited to North America. In Barcelona, authorities plan to ban apartment rentals to tourists by 2028 to address rising housing costs, and the Spanish government has announced a crackdown on holiday rentals amid growing local discontent.
(Source:www.reuters.com)
In 2024, the growth of short-term rental supply has slowed in 17 of the 30 largest cities in North America, according to KeyData, a vacation rental analytics firm. This trend has prompted major players like Booking Holdings and Expedia Group's VRBO, as well as smaller operators, to significantly increase their lobbying expenditures to prevent further local restrictions that could limit the availability of rental properties.
Cities such as New York, Los Angeles, and Montreal have already enacted measures to curb the expansion of short-term rentals, responding to resident complaints that these rentals contribute to rising housing costs and degrade the quality of life in neighborhoods. Richard de Sam Lazaro, senior director of government affairs at Expedia, emphasized the industry's willingness to collaborate with local lawmakers: "We're really eager to work with those local lawmakers to understand what their priorities are, but there are some opportunities to strive for stability and consistency in state law."
In the first half of 2024, vacation rental companies spent $1.4 million on lobbying, a 13% increase from the previous year, as they ramp up efforts in key states like Florida, Colorado, and Arizona. Critics argue that these expenditures are just the beginning. Murray Cox, a housing activist and founder of Inside Airbnb, a data platform tracking vacation rentals, said, "That's the tip of the iceberg compared to how much staff they have and who they are employing to be so-called organizers."
Cox was instrumental in drafting legislation in New York City that took effect in September 2023, leading to a 54% drop in short-term rental listings for stays of less than 30 days, according to AirDNA, a short-term rental analytics firm. As a result, average hotel prices in New York rose by 5.6% in the first half of 2024, compared to a 1.8% national increase, according to Costar, a commercial real estate analytics firm.
Similarly, in British Columbia, supply fell by 9.4% just a month after regulations restricting rentals to primary residences were passed in 65 communities. This led to a 9% increase in daily hotel rates across the province, as reported by AirDNA.
The slowdown in vacation home purchases due to higher interest rates and elevated home prices further exacerbates the industry's challenges, according to Melanie Brown, director of data insights at Key Data. Despite these hurdles, the industry continues to push back against local restrictions through increased lobbying efforts.
Expedia's lobbying expenditures rose by 58% in the first half of 2024, reaching $380,000, as the company worked with Arizona legislators on regulations that prohibit localities from enacting outright bans on short-term rentals. Booking Holdings increased its lobbying spend by 61% to $570,000 in the same period.
Local vacation associations and professional property managers are also pooling resources for lobbying efforts. In Florida, the Florida Professional Vacation Rental Coalition successfully persuaded Governor Ron DeSantis to veto a bill in June that would have allowed local officials to revoke or refuse to renew short-term rental licenses. DeSantis labeled the bill as "bureaucratic red tape."
Steve Milo, Steering Committee Chair of the coalition and CEO of VTrips, emphasized the strategic nature of these efforts: "You pay to have access. It is not by chance that you have such a pro-vacation rental situation in the state of Florida." Milo also noted that property managers across Southern states are sharing strategies to bolster their lobbying efforts.
Analysts do not yet see these regulations as a significant threat to the viability of major players like Airbnb. The company noted that 80% of its top 200 markets by revenue are already regulated, and while there is a decline in active listings, Airbnb attributes this to efforts to remove lower-quality properties. Richard Clarke, an equity analyst at Bernstein, remarked, "It would be different if we saw a whole country or even a whole major U.S. state change the rules."
Airbnb's lobbying expenditures in 2024 are down 29% to $470,000, and the company does not expect full-year expenditures to differ significantly from 2023's $1.03 million, as it focuses on global expansion. However, regulatory challenges are not limited to North America. In Barcelona, authorities plan to ban apartment rentals to tourists by 2028 to address rising housing costs, and the Spanish government has announced a crackdown on holiday rentals amid growing local discontent.
(Source:www.reuters.com)
