Calling on Ketchum to Limit Short-Term Rentals | Customer reviews
Use Ketchum to limit short-term rentals
While there are many potential solutions to the housing crisis in Ketchum, the signatories of this letter would like to draw attention to a major factor contributing to our housing crisis: short-term rentals. We call on Mayor Neil Bradshaw to tackle this problem head-on by seeking to limit short-term rentals.
What are the impacts of short-term rentals (or STRs) on the local housing market?
STRs reduce the supply of housing available to residents. In 2017, there were around 471 STRs, according to a city study of STRs. Today, the town of Ketchum estimates that there are as many as 900 in a town of 2,800 people. From 2010 to 2018, the number of rental units in Ketchum decreased by more than 40% according to SVED.
STRs increase the demand for available housing. Working families must compete with investors and wealthy second home owners, both of whom can offset the high purchase prices with income from DOSs. This leads to STRs that push house prices up to levels that residents cannot compete with. This was a finding of the 2017 study conducted by the city of Ketchum.
STRs are orders of magnitude more than long term rentals, prompting landlords to convert long term rentals to STRs. The average rate per night for STRs is $ 350, according to AirDNA.
STRs at current levels are not necessary to maintain a healthy level of tourism. Our hotel occupancy rates are relatively low. In 2019, the occupancy rate of Ketchum hotels was only 40% on average, peaking at 71% in July according to the SVED.
Even though we think STRs are a problem, we would like to make a distinction: renting a primary residence for short periods is not our concern and, in fact, can help offset the cost of housing for residents. local. We are also not proposing a ban on unoccupied STRs, but reasonable limits, to rebalance tourism with local housing needs.
STRs should be limited based on the Sandpoint, Idaho model. The legal risks are largely offset by the potential impact of a limitation on the current and future local real estate stock. Losing a legal challenge here would only strengthen the case for changing Idaho state law, working with other resort communities in the state that are also affected by STRs.
STRs should be taxed more heavily, both to discourage STRs and to capture some of the income from this lucrative market. Proceeds should be spent on affordable housing solutions. Options such as increasing the LOT tax which will affect hotels or increasing the cost of business licenses should be explored.
DOSs compete with hotels and should be subject to the same fire safety and security standards. Enforcement of the existing fire and safety code would remove many older condos from the STR market, as compliance costs would be prohibitive. Existing ordinances, which prohibit STRs in the avalanche zone, must also be enforced.
The city must take concrete and transparent steps to change the law of the state of Idaho, allowing Ketchum to regulate and limit STRs.
We call on Mayor Bradshaw to recognize the negative impact of STRs on our housing market and act quickly to limit them, following in Sandpoint’s footsteps.
Nathan Harville, Executive Director of the Blaine County Housing Authority
Liz Keegan, vice-president, BCHA
Kris gilarowski, organizer of Occupy Ketchum Town Square
Perry boyle, former candidate, Ketchum Mayor
Gwen Raney, former candidate, Ketchum City Council
Reid stillman, former candidate, Ketchum City Council
Kingsley murphy, owner of a local business