Newport council directs administration to draft ban on non-owner short-term rentals in several zones

The Newport City Council voted 4-3 to direct the city administration and the solicitor to prepare a plan and proposed ordinance amendments to prohibit new short-term rentals that are not owner-occupied in the city, and to present that plan by the council’s next meeting. The resolution asks that proposed changes be advertised and routed through the normal review bodies, including any required planning and zoning steps.

Supporters said the change aims to protect housing stock and reduce conversions of long-term rental apartments into short-term units, a trend they described as reducing available housing. “We are losing 20 to 30 units of housing per year from conversion of these apartments in commercial districts into short-term rentals,” Councilor Carlin said during debate, citing the city’s housing study and resident concerns. Backers framed the proposal as a way to “stop the bleeding” of rental housing while broader housing policy work continues.

Opponents said the proposal risks overreaching into private property rights and could inflate values for already-established short-term rentals by effectively grandfathering those operators. Several councilors said properties in commercial zones often function as businesses, and preventing them from operating as short-term rentals may not advance affordable housing goals. Councilors who voted against the resolution warned that restricting new short-term rentals in business districts could create an uneven market advantage for existing operators.

The resolution does not itself change zoning; it directs staff and the solicitor to prepare a package of ordinance language and administrative policies for council consideration. The council also indefinitely postponed two related measures — one that would have barred short-term rentals from obtaining guest parking passes and another that would have restricted zoning board variances for transient guest facilities lacking on-site parking.

Next steps: the administration and solicitor were ordered to prepare draft ordinances and related materials, advertise them if required, obtain referrals and reviews, and return to the council by its next meeting with a plan that includes enforcement and owner-occupancy verification measures similar to those used in the city’s residential tax program.