Happy Friday! The vacation rental industry continues to evolve, with significant developments this week highlighting the dynamic nature of the market. From regulatory shifts to personal stories of homeowners leveraging rental opportunities, here’s a roundup of the latest news.
During the Masters Tournament in Augusta, Georgia, local homeowners are capitalizing on the influx of visitors by renting out their properties. For instance, photographer Whitney Boykin and her family vacate their North Augusta, South Carolina home to accommodate guests, earning enough in one week to cover their annual mortgage. Data from AirDNA indicates that in April 2024, the number of rentals in Augusta surged to 1,700, with average revenues reaching $5,300.
Vacation rental management company Vacasa is at the center of a bidding war, with Davidson Kempner offering $5.83 per share, surpassing Casago’s $5.30 per share bid. The outcome of this competition could significantly impact the company’s future direction and the broader vacation rental market.
Maui Mayor Richard Bissen’s proposal to phase out over 7,000 short-term vacation rentals by 2026 aims to address the island’s housing shortage, exacerbated by the 2023 wildfires. A recent study by the University of HawaiĘ»i Economic Research Organization (UHERO) indicates that while this move could add approximately 6,127 units to the long-term housing market and improve affordability, it may also lead to significant economic drawbacks. These include a projected $900 million annual decline in visitor spending, the loss of 1,900 jobs, and a $60 million decrease in property tax revenue by 2029. UHERO suggests alternatives such as implementing new taxes, auctioning rental permits, and incentivizing new developments to mitigate potential economic disruptions while addressing housing needs.
Washington lawmakers are advancing Senate Bill 5576, which would allow cities and counties to impose up to a 4% excise tax on short-term rentals like Airbnb and VRBO. The revenue would fund affordable housing initiatives, including construction, rental assistance, and homelessness services. Supporters argue the measure addresses the state’s housing shortage, while critics warn it could deter tourism and burden small rental operators. If enacted, the tax could take effect in April 2026.
That’s a wrap for this week! Stay tuned for more updates on the ever-changing landscape of vacation rentals.
