Arizona’s Short-Term Rental Debate: A Clash Over Housing and Regulation
The landscape of short-term rentals (STRs) in Arizona is a battleground for legislation and local interests. While rental operators resist new restrictions, both proponents and opponents of STRs identify a common adversary: large, out-of-state investors buying up local housing stocks.
In 2016, Arizona legislators passed a law that prevented municipalities from imposing restrictions on STRs and platforms like Airbnb. Since then, cities known for tourism, such as Scottsdale and Sedona, have voiced growing concerns over the impact of these rentals on the housing market. This frustration has spurred lawmakers to propose increasing legislation aimed at regulating STRs, as noted by a report here.
This year, Governor Katie Hobbs introduced a proposal to levy a $3.50 nightly fee on short-term rentals. The revenue would be used to support utility assistance for low-income residents, according to her legislative agenda.
Jonathan Wicks, President of the Arizona Responsible Tourism Coalition, opposes such measures. At a recent press conference, he stated that, “It would cause us to not be able to operate, potentially not be able to rent out our homes and pay for mortgages that we use through this income. But also, if we were to operate, that would only increase costs for people to visit our state,” Wicks explained.
The coalition maintains that individual residents using their properties as rentals are not to blame for housing shortages. Wicks emphasizes that the issue lies with “institutional investors” purchasing homes in Arizona for long-term rentals.
“Unaffordable housing is a real issue. … The primary driver of rising housing costs is institutional investors who are buying massive numbers of homes as long-term rentals, driving up rent, and making it harder for families to find affordable places to live,” said Brindy Bringhurst, an Airbnb ambassador aiding property owners in converting their homes into rentals.
The Arizona Neighborhood Alliance, an anti-STR group, countered the coalition’s event with a protest. Alliance members concur that local residents renting part of their property are not the core problem, especially if they reside there themselves. Their primary concern is with out-of-state investors.
Despite this shared viewpoint, the two groups remain divided on other issues. Wicks argues that problem rentals, or “party houses,” are declining, but Roseanne South of the Arizona Neighborhood Alliance, who also manages multiple Airbnbs, disagrees, citing ongoing issues with party houses in her community.
