Rising Tensions Over Short-term Rental Regulations in Arizona
As Arizona grapples with the impact of short-term rentals (STRs) on its housing market, a clash emerges between rental operators and those advocating for tighter regulations. Both sides, however, share a concern over the increasing acquisition of properties by large out-of-state investors.
Back in 2016, Arizona’s legislation prevented local municipalities from imposing restrictions on STRs, facilitating the expansion of platforms like Airbnb. This legislative move has led to growing frustration in tourism-heavy areas such as Scottsdale and Sedona, where rentals are consuming a significant portion of available housing. In response, lawmakers have proposed numerous restrictions on STRs.
This year, Governor Katie Hobbs introduced a proposal to impose a $3.50 nightly fee on STRs, with the revenue directed towards utility assistance for low-income residents. The Arizona Responsible Tourism Coalition, represented by Jonathan Wicks, argues that such fees would negatively impact both tourists and homeowners.
“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 during a recent press conference.
The coalition contends that individual Arizona property owners are being unfairly blamed for housing shortages, while a different issue remains unaddressed—large-scale purchases by “institutional investors.”
Wicks remarked, “I know there are bills that are out there and there are workings [sic] to be done to maybe stop some of that, but that’s not something that we’ve taken an official stance on.”
Brindy Bringhurst, an “Airbnb ambassador,” echoed this sentiment, stating, “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.”
Meanwhile, the Arizona Neighborhood Alliance, an anti-STR group, made their presence known by counterprotesting at the coalition’s event. Despite disagreements, both groups acknowledge that individual homeowners renting their properties are not the primary issue, especially when they remain on-site. Instead, they point to out-of-state investors as the real challenge.
Disagreements persist on other matters, such as the prevalence of STRs turning into “party houses.” Wicks contends that this issue is diminishing, with “bad actors” exiting the market. Yet, Roseanne South from the Arizona Neighborhood Alliance, who also manages multiple Airbnbs, advocates for restrictions, citing ongoing issues with party houses in her community.
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