Portland Slashes Short-Term Rentals: How Will It Affect the Housing Market?

Photo byChad StembridgeonUnsplash

Council Votes to Limit Airbnb-Style Rentals

PORTLAND, Maine — In a decisive move to address the ongoing housing crisis, the Portland City Council voted unanimously on Monday night to reduce the cap on short-term rental units. The new regulation limits the number of Airbnb-style rentals to 1.5 percent of the city's roughly 18,000 rental units, equating to about 270 units. This is a significant decrease from the previous cap of 400 units.

Councilor Kate Sykes emphasized the primary objective behind this decision, stating, "Preserving Portland's long-term housing stock was really a key goal." The council's actions reflect growing concerns that short-term rentals are contributing to the shrinking availability of affordable housing in the city.

A Step Toward Housing Stability

The reduction in the short-term rental cap has been hailed by housing advocates as a crucial step in addressing Portland's housing challenges. Wes Pelletier, a prominent housing advocate, expressed support for the new limits, stating, "It's a great start. Families around Portland, especially our working-class families, are being hollowed out and forced to move because of these short-term rentals that are really taking up a lot of the housing stock that should be going to renters."

While the new cap aims to stabilize the housing market, current short-term rental landlords will not lose their licenses, ensuring that those already operating within the previous limits are not immediately impacted.

Economic Concerns from Rental Hosts

Despite the council's decision, short-term rental hosts have voiced concerns about the potential economic impact. Chris Korzen, a local short-term rental host, highlighted the significant contribution of vacation rentals to the local economy. "The Maine Office of Tourism estimates nearly three-quarters of a billion dollars is spent by visitors to the Greater Portland area who stay in vacation rentals," Korzen noted.

Korzen, while not entirely opposed to the new cap, suggested that it could have been set higher, around two percent of the total rental stock, as proposed by Councilor Roberto Rodriguez. This adjustment, he argued, would still protect the long-term housing market while allowing short-term rentals to continue contributing to the local economy.

Additional Council Decisions

In addition to the rental cap, the council approved two affordable housing projects, signaling their commitment to addressing Portland's broader housing needs. The council also halted a proposal that would have placed a minimum wage increase on the November ballot, indicating a cautious approach to changes that could affect the city's economic landscape.

As Portland continues to grapple with its housing crisis, the decisions made by the city council on Monday night mark a pivotal moment in the ongoing debate over short-term rentals and their impact on the community.

Attribution source: Newscentermaine.com