Short-Term Rental Regulations Fail to Pass at Albuquerque City Council

The Debate Over Short-Term Rental Regulations

The Albuquerque City Council considered two proposals to regulate short-term rentals (STRs) this week, but neither gained enough support to be approved. The debate highlighted the city's struggle to balance neighborhood concerns with the interests of the STR industry while tackling the ongoing housing crisis.

The Proposed Regulations

Both proposals were part of the city's Housing Forward initiative to add 5,000 new housing units through zoning changes and regulations. The first proposal would have capped STRs at 1,800, required a local manager for each rental, limited rentals per person to three, and added penalties for violations. The second kept a 330-foot distance between rentals but removed the cap, manager rule, and limits per person.

Arguments For and Against

Supporters of the regulations argued they were necessary to preserve housing stock. With Albuquerque facing a severe housing shortage, limiting STRs could potentially keep more homes available for residents rather than as temporary rentals for tourists. A few homeowners complained at the meeting about disruptions from "party houses" in their neighborhoods.

However, several STR operators spoke out against the proposals, concerned about overly burdensome rules. The distance requirement, in particular, was criticized as arbitrarily restricting where they could operate.

A Divided Council

The councilors themselves were divided on the best path forward. The original sponsor, Tammy Fiebelkorn, preferred the stricter regulations but saw the second proposal as a "compromise." She emphasized the high cost of replacing housing and the need for action.

Others felt the original rules went too far. Councilor Pat Davis, who voted yes, called them "imperfect" but argued something must be done to increase housing access. Meanwhile, Councilor Trudy Jones voted no, believing market-based solutions would be better than government intervention.

The Path Forward

Ultimately, the revised proposal failed 6-3, with only the sponsors voting yes. The original plan then fell by the same margin, as three of its initial supporters switched to oppose it.

While the councilors agreed affordable housing is a priority for Albuquerque, they disagreed on imposing new limits on STRs as a solution. Some felt the proposed regulations unfairly targeted STR operators without just cause.

However, the issue is unlikely to go away. Housing advocates will continue pushing for policies to preserve housing stock and protect neighborhoods. STR platforms like Airbnb will lobby against burdensome rules. And the council will keep searching for an equitable compromise.

Other cities have taken a range of approaches. Some, like Santa Monica, have banned STRs in residential areas but allowed them in commercial zones. Others, like Portland, have imposed permitting systems and firm caps. Albuquerque may eventually follow suit if housing pressures continue mounting.

For now, the council's rejections of both proposals reflect how complex it can be to regulate disruptive new industries while balancing different interests. STRs provide income for some residents and lodging options for visitors that support tourism. However, concentrated STRs in neighborhoods can potentially negatively impact community feel and quality of life.

Going forward, Albuquerque will need creative solutions that allow STRs to thrive while still prioritizing housing access and affordability above all. Compromise and nuance will be vital in crafting fair, effective policies. The council's failure to find an answer this week shows there's more work to be done in charting a regulatory path that leads to a fair compromise for both sides.