Industry witness tells Vermont committee short-term rentals are small share of housing but large tourism driver, urges statewide data collection

Julie Marks, founder and director of the Vermont Short Term Rental Alliance, told the Vermont House Committee on General & Housing on Jan. 31 that short-term rentals make up a small share of Vermont s housing stock but deliver outsized economic benefits and that the state should invest in comprehensive, centralized data before crafting new regulations.

Marks said the industry she represents is "a member-managed business association" with more than 360 members in Vermont and that short-term rentals are legally defined as dwellings rented for fewer than 30 consecutive days under state law. She told the committee that "short term rentals make up 3% of our housing stock, and 60% of our visitor capacity," and that short-term guests spent an estimated $650,000,000 in 2023, generating "upwards of $54,000,000" in meals-and-rooms tax revenue.

The testimony emphasized distinctions in Vermont law. Marks said state authority for short-term rental regulation was established under Act 10 of 2018 and involves the Department of Public Safety ivision of Fire Safety and the Department of Taxes. She also noted that rentals of fewer than 14 days per year are currently carved out of some short-term rental requirements and that properties with three or more units rented on one parcel fall under the state s lodging definition and require additional licensing.

Why it matters: The discussion frames a policy choice confronting lawmakers: whether to allow municipalities to continue crafting local short-term rental rules tailored to local conditions, or to pursue statewide steps that could standardize data collection and regulatory baselines. Marks argued the latter is necessary to measure impacts accurately before imposing further restrictions.

Marks told the committee she and her group have not seen evidence that short-term rentals are driving large increases in housing costs in Vermont, though she acknowledged Vermont has not yet done a comprehensive study. She cited analyses from New Hampshire and Maine and industry data sources, including AirDNA and data purchases by VHFA, as the basis for the estimates she presented.

On housing impacts, Marks said many hosts use rental income to remain in their homes: "One in four of our hosts in Vermont say that hosting has helped them stay in their homes," she said, and estimated that "roughly about 25,100 households" statewide short-term rent. She also told the committee that about "80% of short-term rentals are being offered as monthly or seasonal furnished rentals," a figure she said comes from industry estimates and VHFA-purchased data.

Committee members asked questions about local regulation, enforcement and the value of a statewide study. Marks warned that a patchwork of municipal rules makes it harder to aggregate data and to measure the effect of local ordinances. She said Burlington s local policy, for example, was implemented without baseline measurement and that enforcement has been difficult. Marks recommended a centralized registry or coordinated data collection so the state can trace trends such as the typical lifespan of a vacation rental listing.

Members also raised caution about statewide studies capturing only a moment in time in a dynamic market. Marks acknowledged the short-term rental market is fluid, with properties entering and leaving the market over periods she estimated might be five to ten years, and said better longitudinal data would help target any regulatory responses.

Marks said the Vermont Short Term Rental Alliance opposes regulations that create "undue burden or restrictions" on homeowners and management businesses but supports regulations that encourage high-density infill development in downtowns and incentives that make owning and maintaining residential property more affordable. She also said the association supports protections for homeowners who also function as landlords.

The committee did not take formal action on any bill during the hearing segment recorded in the transcript. Marks concluded by offering to serve as a resource to the committee as lawmakers consider bills and data collection proposals.

Ending: Committee members said they expect additional bills and further hearings on short-term rentals this session. Marks left the committee with a request for better, centralized data and legislative attention to incentives that address housing supply and the costs of owning property in Vermont.