Gloucester City Council debates cap on short term rental units amidst data gathering

The Gloucester City Council meeting on April 8, 2025, focused on the regulation of short-term rentals, a topic that has sparked significant debate among council members. The primary discussion revolved around the proposed cap on the number of non-primary residence short-term rentals allowed in the city, currently set at 500 units.

Council members expressed differing opinions on whether to maintain this cap. Some argued that establishing a limit is essential to prevent a potential influx of short-term rentals that could reduce the availability of long-term housing. They emphasized the need for data to inform any decisions regarding the cap, suggesting that the council revisit the issue in September after gathering more information on the current rental landscape.

Others contended that the 500-unit cap might be too high, given the ongoing housing crisis in Gloucester. They highlighted the importance of ensuring that rental units remain available for year-round residents, particularly as the city seeks to develop more housing options. The discussion included concerns about the impact of short-term rentals on the local housing market and the potential for individuals to monopolize rental properties for short-term use.

Despite the robust debate, a motion to eliminate the cap failed, with a vote of 2 in favor and 5 opposed. The council decided to maintain the current regulations while agreeing to collect data over the coming months to reassess the situation.

In addition to the cap discussion, the council addressed amendments regarding ownership restrictions for short-term rentals. A proposal to limit individuals to owning only one short-term rental unit was also debated, with councilors expressing the need for clarity on how these regulations would affect current and future property owners.

As the meeting concluded, council members acknowledged the complexity of the issues at hand and the necessity of further discussions in future meetings. The council plans to continue addressing these topics, aiming to strike a balance between supporting local businesses and ensuring adequate housing for residents.