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Real Estate

Cities Across the Nation Grapple with Vacation Rental Regulations

January 31, 2026
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Across the United States, municipalities are actively considering and implementing new regulations for short-term vacation rentals. This growing trend reflects a desire to balance the economic benefits of platforms like Airbnb and Vrbo with concerns about housing availability, neighborhood character, and fair taxation. Cities are exploring various approaches, from stricter licensing requirements to limitations on the number and proximity of rentals.

Key Takeaways

  • Cities are enacting stricter rules for short-term rentals to address impacts on long-term housing markets.
  • New ordinances often include limits on the number of rentals, distance between properties, and manager residency.
  • Tax collection from short-term rentals is a significant consideration for municipalities.
  • Some cities are establishing rental registries to improve transparency and accountability.

Evanston’s Evolving Ordinance

Evanston, Illinois, is at the forefront of this regulatory push, with its City Council repeatedly amending a proposed ordinance to govern vacation rentals. Initially, the city imposed a moratorium on new applications due to concerns about the impact on the long-term rental market. The proposed ordinance defines short-term rentals as furnished units rented for less than a year without a lease. Key changes include limiting short-term rentals to one per 100 long-term rental units, increasing the required distance between rentals to 600 feet, and requiring property managers to reside within three miles of the city. Council members are also exploring ways to ensure proper collection of hotel taxes through rental platforms.

Jacksonville’s Rental Registry Initiative

In Jacksonville, Florida, Councilman Jimmy Peluso is championing the creation of a "Rental Registry." This system aims to provide renters with crucial information about property owners, their history of code violations, and contact details. The initiative, spearheaded by Jacksonville Area Legal Aid, seeks to empower tenants and offer a centralized resource for navigating rental property issues. Peluso also plans to establish an ombudsman position to assist residents with property-related concerns and connect them with city resources.

Broader Trends in Arizona and Beyond

Arizona is also renewing its efforts to restrict short-term vacation rentals, with Governor Katie Hobbs proposing new measures. Concurrently, the Arizona League of Cities and Towns is introducing legislation to grant municipalities greater control over these rentals. These actions mirror a national conversation about how to manage the proliferation of short-term rentals, which can affect housing affordability and the availability of long-term rental options for residents. Cities are carefully weighing these factors as they craft policies to suit their unique community needs.

Sources

  • Evanston not quite ready to reopen the door on ‘vacation rentals’, Evanston RoundTable.
  • Alders push new limits on vacation rentals, Evanston Now.
  • Councilman pushes to bring rental registry to Jacksonville. What it could mean for renters, News4JAX.
  • ‘Vacation rental’ ordinance moves forward with a few proposed changes, Evanston RoundTable.
  • Arizona renews push to restrict short-term vacation rentals, AZ Family.

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