Rockland may ban short-term rentals when the owner lives elsewhere

For its next move in attempting to alleviate the housing crisis, Rockland will consider a proposal to stop giving permits for short-term rentals to owners who do not live on the property — after the city council considered and rejected a similar measure two years ago. The midcoast has been one of the areas in Maine hit hardest by the housing crisis, as nearly every town in the region lacks affordable housing. With some of the housing stock taken up by properties that are rented out for short periods on sites like Airbnb and Vrbo, several towns have begun regulating them to keep them from taking up even more of the market. While Rockland has required permits for short-term rentals since 2018, the proposal from City Councilor Kaitlin Callahan would stop granting permits to owners who do not live on the same property as the rental starting in 2026. The city currently caps the number of non-owner-occupied short-term rentals at 45 — which is just over 1 percent of the city’s housing stock, according to Callahan. The council previously considered a ban on non-owner-occupied short-term rentals in most residential areas in 2022, but it faced pushback — especially from landlords who would be affected — and the measure did not go forward. The purpose of the latest proposal, Callahan said, is to protect the city’s remaining housing stock and to stop driving up home prices even further. “Because of the speculative market in the community, it has driven housing costs up so high,” Callahan said. “The average family cannot afford to buy a home here anymore, and by getting rid of those speculative investors buying properties here, hoping they can turn them into, essentially, cash cows — it will take a little time, but I really hope it’ll start to level out the market a little bit.” Short-term rentals have faced greater scrutiny across Maine in recent years, but it’s not clear that they’re a major contributor to the state’s housing crisis. A 2023 report from Gov. Janet Mills’ administration found a vast majority of existing short-term rental properties would not be viable as year-round housing due to their size, cost or design. The lack of overall housing supply is seen as the biggest factor in affordability. But on a local level, Callahan said she has seen properties sit empty for long periods of time in Rockland, waiting on short-term rental permits. By banning that practice, she said, some of those properties could turn into long-term housing or go back on the market. The proposed ordinance amendment also changes some language to allow for people who don’t reside on the premises of their short-term rental for some periods of time to be exempt. Callahan said some people rent out their residences in summer for a few weeks and live elsewhere to be able to afford their mortgage or property taxes. “Not everybody has a second unit that they can short-term rent off in their primary residence,” Callahan said. Callahan ran for the council on the basis of improving housing . In her professional life, she said she works with people who are unhoused or struggling with housing. “I work with a very marginalized group of people in our community. Some of them have housing struggles. And I know people who are sleeping in cars or tents with their children,” Callahan said. Then referring to the number of non-owner-occupied short term rentals that are now allowed in Rockland, she added, “So 45 doesn’t sound like a lot, but when you put faces to families, it is a lot,” Callahan said. If councilors advance the amendment on Monday, the next step would be for it to get a public hearing.