B4 • Friday, August 16, 2024
THE GARDEN ISLAND
thegardenisland.com
VACATION RENTAL INDUSTRY STEPS UP LOBBYING Doyinsola Oladipo REUTERS NEW YORK — The vacation rental industry has stepped up efforts to influence U.S. lawmakers to keep more cities from enacting restrictions on short-term rentals in response to concerns about housing availability and quality of life. Growth in short-term rental supply has slowed in 17 of North America’s largest 30 cities in 2024, according to KeyData, a vacation rental analytics firm. In response, Booking Holdings, Expedia Group’s VRBO, and smaller operators are spending more on lobbying to head off local restrictions that limit supply. Numerous cities around North America, including New York, Los Angeles and Montreal, have curbed the growth of rental properties, responding to complaints from residents who say short-term rentals make housing less affordable and hurt the quality of neighborhood life. “We’re really eager to work with those local lawmakers to understand what their priorities are, but there are some opportunities to strive for stability and consistency in state law,” said Richard de Sam Lazaro, senior director of government affairs at Expedia. In the first half of 2024, vacation rental companies spent $1.4 million on lobbying, up 13 percent from the year-ago period as they step up efforts in states like Florida, Colorado, and Arizona. Detractors believe they will continue to spend more money. “That’s the tip of the iceberg compared to how much staff they have and who they are em-
30-year, fixed-rate mortgage steadies near 15-month low Makailah Gause REUTERS NEW YORK — The average rate on the popular U.S. 30-year mortgage rate was little changed near the lowest level in over a year this week, as signs of cooling inflation have held down the Treasury bond yields used in setting home loan costs. The 30-year fixed-rate mortgage averaged 6.49 percent during the week ending August 15, up fractionally from 6.47 percent in the prior week, the lowest since May 2023, mortgage finance agency Freddie Mac said on Thursday. “In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market,” Freddie Mac Chief Economist Sam Khater said in a statement. “Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.” It averaged 7.09 percent during the same period a year ago. Mortgage applications increased by nearly 17 percent last week as mortgage rates continued to fall, Mortgage Bankers Association data showed on Wednesday, enticing homeowners who had bought with high-rate mortgages in the last year to rush to refinance those loans. “The significant increase was led by a 35 percent jump in refinances and also included a 3 percent increase in purchase applications. While the refinances remain strong, we expect that the purchase market will continue to gain momentum as mortgage rates continue to fall,” MBA Chief Executive Bob Broeksmit said in a statement.
alition persuaded Governor Ron DeSantis to veto a bill in June that would have authorized local officials to revoke or refuse to renew short-term rental licenses. DeSantis called the bill “bureaucratic red tape.” “You pay to have access,” said Steve Milo, coalition Steering Committee Chair and CEO of VTrips, a professional property management company. “It is not by chance that you have such a pro-vacation rental situation in the state of Florida.” Milo said property managers across Southern states are trading notes on how to increase their lobbying. Analysts so far don’t see regulations threatening the viability of Airbnb and others. Airbnb said 80 percent of its top 200 markets by revenue are already regulated, and while it is seeing a fall in active listings, it attributed that to efforts to remove lower-quality properties. CINDY ELLEN RUSSELL / STAR ADVERTISER “It would be different if we saw a whole country or even a Pictured are vacation unit rentals at the Kapalua Golf Villas in Lahaina. whole major U.S. state change half of 2024, compared with a 1.8 Key Data. the rules,” said Richard Clarke, ploying to be so-called organizExpedia spent $380,000 on lob- Bernstein equity analyst. ers,” said Murray Cox, a housing percent increase nationally, acAirbnb’s 2024 lobbying spend activist who founded Inside cording to Costar, a commercial bying in the first half of 2024, up is down 29 percent to $470,000, Airbnb, a data platform that real estate analytics firm. 58 percent from the year prior, tracks vacation rentals. “In many A month after regulations reaccording to nonprofit transpar- and it does not expect full-year cities short-term rentals have a stricting rentals to primary resi- ency group Open Secrets. Expe- expenditures to differ signifinegative impact on housing and dences were passed in 65 British dia worked with Arizona cantly from 2023’s $1.03 million, they should be regulated.” Columbian communities, supply legislators on regulation that as the company focuses on Cox helped draft legislation to fell 9.4 percent, said Jamie Lane, prohibits localities from enactglobal expansion. restrict short-term rentals in chief economist at AirDNA, while ing outright bans. Booking HoldRestrictions found in North New York City that took effect in daily hotel rates rose 9 percent America are present elsewhere. ings boosted lobbying September 2023. Since then, list- in the province. Barcelona plans to bar apartexpenditures 61 percent in the Vacation home purchases same period to $570,000. ings for less than 30 days have ment rentals to tourists by 2028 have already slowed due to Local vacation associations fallen by 54 percent, according to rein in soaring housing costs. higher interest rates and eleand professional property manto AirDNA, a short-term rental A few weeks later, the Spanish analytics firm. government announced a crackvated home prices, said Melanie agers are also pooling funds for Average hotel prices in New Brown, director of data insights lobbying. In Florida, the Florida down on holiday rentals due to York rose 5.6 percent in the first at vacation rental analytics firm Professional Vacation Rental Co- anger from locals.