Vermont short term rentals generate $650M in tourism spending and boost local economy

In a recent Vermont government meeting, discussions centered on the significant economic impact of short-term rentals, highlighting their role in local business revenue and housing solutions. In 2023, short-term rental guests contributed an estimated $650 million to local businesses, generating over $54 million in meals and rooms tax. This financial influx underscores the importance of vacation rentals to Vermont's economy, particularly as the state seeks to attract new residents.

Advocates for short-term rentals argue that while their impact on housing may be minimal, they fulfill a critical need for furnished housing options. Approximately 80% of short-term rentals serve as monthly or seasonal accommodations, catering to traveling professionals, newcomers, and remote workers. This demand is crucial as Vermont faces a housing deficit, and proponents suggest that restricting short-term rentals could exacerbate housing challenges rather than alleviate them.

The meeting also touched on the need for balanced regulations that support the vacation rental community while promoting high-density housing development in urban areas. Stakeholders expressed a desire for comprehensive data collection on the vacation rental economy to inform regulatory decisions, similar to initiatives in neighboring states.

Additionally, there were calls for legislation aimed at reducing property ownership costs and providing protections for landlords, many of whom also offer long-term rentals. The discussions emphasized the importance of supporting "rentalpreneurs," individuals who operate short-term rentals as small businesses, to foster a sustainable visitor economy across Vermont.

As the state considers new legislation, the outcomes of these discussions could shape the future of both the housing market and the tourism industry in Vermont, balancing the needs of residents and visitors alike.