Evanston Council moves to limit vacation rentals to protect affordable housing

Evanston City Council is taking a firm stance against vacation rentals, with plans to limit their presence in the city due to concerns over affordable housing. During the Planning and Development Committee meeting on March 31, 2025, council members expressed their commitment to addressing the housing crisis by potentially halting new vacation rental permits.

Council Member Jerez emphasized the detrimental impact of vacation rentals on the availability of affordable housing, stating, “We are concerned about how they detract from our supply of affordable housing.” This sentiment reflects a growing urgency among council members to prioritize long-term housing solutions over short-term rental profits.

The discussion also touched on the ongoing debate regarding a proposed housing project by developer Mr. Wallach. While some council members acknowledged that the project may not fit the traditional definition of affordable housing, they highlighted its potential to meet the needs of the "missing middle" demographic—families seeking attainable housing options. Jerez pointed out that denying the project could lead to the construction of larger duplexes or townhomes, which may not align with the community's vision for diverse housing types.

The council's approval of the project last year was based on its promise to enhance neighborhood diversity and incorporate sustainable features, such as all-electric buildings and EV charging stations. Jerez noted that relying on a completion bond would ensure the developer follows through with the project as proposed.

In addition to the housing project discussions, council members also addressed the current regulations surrounding vacation rentals. The existing ordinance allows owner-occupied homes to operate as short-term rentals without additional oversight, raising concerns about potential loopholes for non-owner-occupied units. Council Member Veil questioned whether individuals could circumvent the rules by renting out multiple properties, emphasizing the need for stricter regulations to protect the housing market.

As Evanston moves forward, the council's decisions on vacation rentals and housing development will play a crucial role in shaping the community's future and addressing the pressing need for affordable housing.