The Airbnb Boom in Ithaca

The popularity of short-term rental services like Airbnb has exploded in recent years in tourism destinations like Ithaca, New York. With Cornell University and Ithaca College drawing visitors and the stunning gorges and waterfalls attracting tourists, there has been a surge of homes and apartments listed on sites like Airbnb. For homeowners, the ability to earn extra income through Airbnb rentals can be highly lucrative, especially during peak seasons and events. However, not everyone is happy about the rise of Airbnbs.

At the recent City of Ithaca Planning and Economic Development Committee (PEDC) meeting, draft regulations were presented that aim to curb short-term rentals, especially in residential neighborhoods. The goal is to strike a balance that allows some home sharing while also protecting the local housing market and quality of life for full-time residents.

Why Limit Airbnbs?

There are several key reasons the city wants to restrain the growth of Airbnbs:

Housing Availability and Affordability

With a limited housing supply in Ithaca, converting homes and apartments to short-term rentals removes them from the long-term rental market. This exacerbates housing scarcity and drives up rents across the city. The lost housing inventory disproportionately impacts students and lower-income residents struggling to find affordable accommodations.

Neighborhood Disruption

Frequent tenant turnover and "party house" Airbnbs can disrupt residential communities, creating parking problems, noise, trash issues, and security concerns. Neighbors often complain about the nuisance of living near Airbnb units.

Overtourism

While tourism provides an economic boost, overtourism strains infrastructure and public services. Concentrations of Airbnbs in residential areas can degrade locals' quality of life. Managing growth protects community character.

Tax Revenue

Short-term rental hosts not paying occupancy tax for visitors undercuts funding for infrastructure, transit, tourism promotion, and other public services.

Key Elements of Proposed Regulations

Ithaca's draft Airbnb regulations aim to permit some home sharing while limiting investor-owned units or conversion of housing stock. Key elements include:

• Permit and registration requirements for Airbnb hosts

• Limits on eligible rental units to primary residences

• Density and spacing requirements between Airbnbs

• Minimum stays and caps on total rental days per year

• Inspections, reporting, and tax collection

• Complaint system and fines for violations

A Public Process

In late 2022 and early 2023, the city will conduct an extensive public engagement process to gather input on the regulations. This includes a community survey and open houses for discussion and feedback. The final ordinance will likely be voted on in January 2024.

Balancing Tourism and Community

Maintaining community character while welcoming visitors is an ongoing challenge for popular destinations like Ithaca. Implementing reasonable regulations allows residents to earn supplemental income through home sharing, while ensuring housing availability and neighborhood livability. With collaborative public input, the city aims to strike the right balance on Airbnb rules.