Short-Term Rentals Are Now Illegal in 47 Cities — Is Yours on the List?
What’s Happening With Short-Term Rentals Right Now?
If you own a property and rent it out on platforms like Airbnb or Vrbo, you need to pay attention. Cities across the country are cracking down on short-term rentals, and the rules are changing fast. In fact, at least 47 cities have now made certain types of short-term rentals illegal or severely restricted them through new local ordinances.
Whether you’re a host trying to earn extra income or a traveler who prefers renting a home over staying in a hotel, these new short-term rental laws affect you directly. Here’s what you need to know.
Why Are Cities Banning Short-Term Rentals?
It might seem surprising that a city would want to limit a business that brings in tourists and money. But local governments have real reasons for pushing back against platforms like Airbnb. The main concerns include:
- Housing shortages: When landlords convert long-term rental units into short-term vacation properties, fewer homes are available for people who actually live and work in the city.
- Rising rents: Less available housing means higher prices for everyone. In cities already struggling with affordability, short-term rentals can make the problem worse.
- Neighborhood disruption: Neighbors often complain about noise, parties, and a constant flow of strangers coming and going in residential areas.
- Unfair competition: Hotels and bed-and-breakfasts must follow strict safety and tax rules. Many argue that short-term rental hosts should follow the same standards.
- Loss of community character: When too many homes become tourist rentals, neighborhoods can lose the sense of community that makes them special.
These concerns have pushed city councils and local governments to take action through new property rules and Airbnb regulations.
Cities Where Short-Term Rentals Are Now Illegal or Heavily Restricted
The list of cities taking action is growing. Below are some of the most notable places where short-term rental law has changed significantly in recent years.
New York City, New York
New York City passed one of the toughest short-term rental laws in the entire country. Under Local Law 18, hosts must register with the city and be present during any guest stay. This effectively bans renting out an entire apartment while you’re away. The law went into full effect in 2023, and thousands of Airbnb listings in the city were removed almost overnight.
Santa Monica, California
Santa Monica has long been a pioneer in cracking down on short-term rentals. The city only allows home-sharing in a host’s primary residence. Renting out a second property or investment unit for short stays is not allowed. Violations can result in heavy fines.
New Orleans, Louisiana
New Orleans has gone back and forth on short-term rental regulations for years, but the city has now made it illegal to operate a short-term rental in most residential areas unless the property is the owner’s primary home. Commercial short-term rentals in non-commercial zones are banned entirely.
Barcelona, Spain
While not a U.S. city, Barcelona’s approach has inspired many American cities. The city announced it will not renew any short-term rental licenses when they expire in 2028, essentially phasing out the entire industry in the city over time.
Honolulu, Hawaii
Hawaii has been particularly aggressive. Honolulu banned short-term rentals of less than 90 days in most residential neighborhoods. Fines for violations start at $1,000 per day. Other Hawaiian counties have followed with similar restrictions.
Boston, Massachusetts
Boston requires all short-term rental hosts to register and limits rentals to owner-occupied or owner-adjacent properties. Investor-owned units that are not the owner’s primary residence cannot be listed on short-term rental platforms.
Las Vegas, Nevada
Las Vegas — perhaps surprisingly — has placed strict limits on short-term rentals in residential areas. The city requires permits, limits how many rentals can exist in a single neighborhood, and bans them entirely in certain zones.
Other Cities on the List
Beyond those highlighted above, dozens of other cities have passed or are in the process of passing restrictive short-term rental laws. These include:
- San Francisco, California
- Nashville, Tennessee
- Austin, Texas
- Denver, Colorado
- Portland, Oregon
- Jersey City, New Jersey
- Miami Beach, Florida
- Chicago, Illinois
- Phoenix, Arizona
- Seattle, Washington
- Scottsdale, Arizona
- Palm Springs, California
- Aspen, Colorado
- Key West, Florida
- Amsterdam, Netherlands (a widely cited international example)
Each city has its own specific rules, so the exact restrictions vary. Some ban short-term rentals entirely in residential zones. Others allow them only with a permit or only in owner-occupied homes.
What Do These Local Ordinances Actually Say?
Short-term rental laws differ from city to city, but most of them cover a few common areas:
Registration and Licensing
Many cities now require hosts to register their property with the local government before listing it on any rental platform. This usually involves paying a fee, passing an inspection, and proving that the property is up to code. Without proper registration, operating a short-term rental can result in serious fines.
Owner-Occupancy Requirements
A growing number of cities will only allow short-term rentals if the host actually lives in the property. This is called an owner-occupancy rule. The idea is to allow homeowners to rent a spare room or their home while they travel, but to stop investors from turning multiple properties into full-time vacation rentals.
Caps on the Number of Nights
Some cities allow short-term rentals but put a limit on how many nights per year a property can be rented. For example, a city might allow up to 90 nights of short-term renting per year. Beyond that limit, the rental is no longer considered short-term and falls under different rules.
Zoning Restrictions
Local ordinances often tie short-term rental rules to zoning codes. A property in a residential zone may face much stricter rules than one in a commercial or mixed-use zone. Some residential zones ban short-term rentals entirely.
Tax Collection
Most cities now require short-term rental hosts to collect and pay local occupancy taxes, just like hotels do. Platforms like Airbnb and Vrbo often collect these taxes automatically in cities where agreements are in place, but hosts are still responsible for staying compliant.
What Happens If You Break the Rules?
Ignoring short-term rental laws is not a smart move. Penalties can be steep, and enforcement is getting stricter. Here’s what you could face:
- Fines: Many cities issue fines ranging from a few hundred to several thousand dollars per violation, per day.
- Forced removal from platforms: Cities increasingly work directly with Airbnb and other platforms to remove listings that don’t comply with local rules.
- Legal action: In serious cases, cities can take property owners to court.
- Loss of permits: If you have a permit or license, violations can lead to it being revoked.
Some cities have also started using data and technology to track illegal rentals. They compare rental platform listings against registered properties and send notices to anyone operating without proper authorization.
How to Find Out If Your City Has Short-Term Rental Restrictions
The best way to find out if your city has rules about short-term rentals is to check directly with your local government. Here are some practical steps:
- Visit your city’s official website: Search for terms like “short-term rental,” “vacation rental,” or “home-sharing” in the site’s search bar.
- Contact your city’s planning or zoning department: These departments handle property use rules and can tell you exactly what’s allowed in your area.
- Check with your homeowners association (HOA): Even if the city allows short-term rentals, your HOA may have its own rules that ban or restrict them.
- Read your lease or mortgage documents: If you’re renting your home, your lease may prohibit subletting. Some mortgage agreements also have restrictions on using a property as a short-term rental.
- Use the Airbnb or Vrbo platform tools: Both platforms have resources that explain local regulations in many cities. However, don’t rely solely on these — always verify with official city sources.
What This Means for Airbnb Hosts
If you’re currently hosting on Airbnb or a similar platform, the new wave of Airbnb regulations means you need to do your homework. Here’s a simple action plan:
- Check the current short-term rental law in your city and any city where you own rental property.
- Register or obtain a permit if your city requires it.
- Make sure you’re collecting and paying the right taxes.
- Keep an eye on local news and city council meetings for upcoming changes to property rules.
- Consider consulting a local real estate attorney if you’re unsure about your compliance status.
The short-term rental market is not disappearing, but it is changing. Hosts who stay informed and follow the rules will be in a much better position than those who try to fly under the radar.
What This Means for Travelers
If you love booking vacation rentals, you may notice fewer options in some cities. In places like New York City, thousands of listings have already been removed. This can mean higher prices and less availability, especially during busy travel seasons.
The good news is that legal short-term rentals still exist in most cities. When booking, look for listings that clearly display a registration number or license. This is a sign that the host is operating within the law and that your booking is less likely to be disrupted.
The Bigger Picture: Where Is This All Heading?
The trend toward stricter short-term rental laws is not slowing down. As housing costs continue to rise in cities around the world, more local governments are looking at vacation rentals as part of the problem. Many experts expect even more cities to pass restrictive ordinances in the coming years.
At the same time, the short-term rental industry is fighting back. Airbnb and other platforms have lobbied against strict regulations and have taken legal action in some cities. Property rights advocates argue that homeowners should be free to use their property as they choose.
The debate is far from over, but one thing is clear — the days of operating a short-term rental without thinking about local rules are gone. Whether you’re a host, an investor, or a traveler, understanding short-term rental law is now a basic necessity.
Final Thoughts
Short-term rentals have changed the way people travel and the way homeowners think about their property. But with that change has come real challenges for housing markets and neighborhoods. The 47 cities that have taken action are just the beginning of a much larger shift in how short-term rentals are regulated.
The smartest thing you can do right now is find out exactly what the rules are in your city. Whether you’re a current host, a prospective investor, or just curious about your options, knowing the law protects you. Check local ordinances, talk to your city’s planning department, and stay updated as the rules continue to evolve.
The short-term rental landscape is changing fast — make sure you’re not caught off guard.
