Ban on Short-Term Rentals May Negatively Impact Buncombe County’s Local Economy

Buncombe County: Ban on Short-Term Rentals May Negatively Impact Local Economy

Most of us consider ourselves lucky to live in the Blue Ridge Mountains with its scenic views, variety of recreational offerings, and appealing quality of living. It is no wonder that our region has become a hot spot for visitors and new residents. The benefits of the region that many enjoy have also drawn an increase in tourism as we have seen Asheville, Buncombe County, and our neighbors become top national and even global destinations. Such immense growth brings tremendous economic success, with visitor spending in Buncombe County in the past years increasing by a whopping $2.2 billion — including direct spending from short-term rental guests of $700 million in economic activity last year and supporting close to 9,500 jobs annually.

Impact on Local Economy

However, the boom in tourism caused by the pandemic is slowing as travelers return overseas and to large cities. Buncombe County’s Tourism Development Authority is forecasting tourism to be flat for 2024 and 2025. Aside from harmfully impacting our local economy, a ban would also affect the livelihoods of many residents who rely on income from their short-term rental properties. Many STR property owners are local and use their personal investment as a much-needed revenue stream — benefiting from the region’s significant tourism economy that they otherwise would not have access to as residents.

Affordable Housing Concerns

We all agree that steps need to be taken to address housing affordability, but many in our community disagree with the county’s push to ban short-term rentals in the name of solving affordable housing issues. For starters, the recommended short-term rental ban won’t open the housing market or help housing affordability. Limiting access to short-term rentals will not provide much-needed additional housing – under 3.5% of the total county-wide housing stock is categorized as STR properties, which is only a drop in the bucket of housing inventory.

Local Examples and Studies

Look no further than Asheville, where short-term rentals were banned several years ago, but now has among the highest rental prices in the region. A February 2024 Harvard Business Review article reinforces this, finding that restrictions (or bans in the case of Buncombe County) do not help with housing affordability and will not help solve housing issues in most U.S. cities. But despite the real-world, local examples of increased housing costs following STR bans and economic studies that demonstrate the same, our Planning Board continues to publicly criticize any group that brings up these facts.

Legal Challenges and Economic Impact

In other communities, including Iredell County, local bans have resulted in costly legal battles. Legal challenges force local governments to draw additional resources and funding, with no guarantee of success as these regulations face strong legal headwinds across the country. Banning simply doesn’t work, which is why local industry leaders, business owners, and property rights advocates have launched an advocacy campaign to raise awareness about the negative impact that a short-term rental ban would have on Buncombe County.

Community Response

Residents have responded by attending public listening sessions, speaking publicly against the ban, and reaching out to County Commissioners who ultimately will make the decision. Small business owners, property owners, and STR rental owners are wondering why there is a rush when the policy seems to be potentially harmful to the local economy. Businesses, realtors, homeowners, and other local stakeholders are committed to working with the County Commission to ensure that the local STR market remains a good partner to the community so that citizens and visitors can enjoy our successful tourism industry.

Looking Ahead

There needs to be alignment to keep our prosperous economy moving forward to benefit our community — which is why we encourage the task force to be formed as promised by the Planning Board — with all stakeholders at the table.