This Matters
The Stowe Select Board is proposing new regulations that would significantly restrict short-term rentals in the Stowe community. The Select Board has stated that these regulations are necessary to preserve Stowe's character and address the housing crisis.
These regulations will burden current residents and businesses with the costs, harm the Stowe economy and do little to address the real cause of the problem. Before these changes are enacted, it's important to understand the full scope of their impact on property values, local businesses, and Stowe's identity as a premier vacation destination.
What This Means for Current Residents
- Restrictions on STR use will likely reduce your property value when you decide to sell.
- Your ability to rent your property short term - whether for a vacation, temporary relocation, or any other reason - will be severely limited.
- As tax revenue drops from tourism and property values the shortfall will likely be made up by raising property taxes on residents.
- The local businesses that make Stowe such a wonderful place to live will be threatened by reduced tourist traffic.
Attack on Home Value
- Home prices in Stowe reflect their value as short-term rental properties — this is a key component of their market worth.
- Removing STR use will remove this piece of value, likely immediately reducing home values and household net worth.
- Without STR use available the pool of potential buyers will shrink as those who need STR income will be priced out.
- Homeowners who have purchased and financed homes within the past few years may be pushed underwater.
Attack on Stowe's Identity
- Stowe has invested significant time and resources into advertising itself through its magazine, website, and events—all reinforcing its vacation and tourism atmosphere.
- Stowe's has been a tourist destination for generations, going back to 1922 and the first Winter Carnival.
- Stowe has seen substantial growth in high-quality restaurants over the past decade, driven by the tourism economy.
- Home values reflect the success of Stowe's own marketing and development efforts.
- Stowe must decide what it wants to be. If it continues advertising itself as a vacation destination, it cannot act surprised when people treat it as such.
Economic Consequences
- Full-time homeowners do not frequent restaurants or use services as often as tourists do—visitor spending is essential to these businesses.
- The dramatic increase in high-quality restaurants over the past 10 years has been fueled by tourist spending.
- Small Businesses that survived COVID now face a challenging economy, reducing tourism will likely result in closures - we've already seen closures like Black Cap on Church Street due to decreased foot traffic.
- Stowe tax revenue takes in over $2m a year in tourism-related activities, providing services and relief to property taxes.
- There are not enough high paying jobs in the Stowe area to support the current Stowe economy, Stowe must continue to attract tourism revenue.
- Removing STRs creates a triple threat: reduced customer traffic for businesses and local income, lower meals and hospitality tax revenue, and decreased real estate tax income due to dropping property values.
The Bigger Picture on Pricing
- Short-term rentals cannot be blamed for the entirety of the housing affordability crisis—this is a nationwide issue.
- The crisis is especially acute in high-demand areas. Stowe has cultivated a very strong identity through decades of marketing, services, and events.
- Building in Stowe is inherently expensive—the "Stowe tax" on construction costs will not change regardless of STR policy.
- Vermont has been experiencing a price correction that is stronger than many other places. The proposed STR regulation is a sledgehammer to the local economy when a more measured approach is needed.
A Better Way Forward
Instead of restricting property rights and damaging our local economy, Stowe can address housing affordability through constructive policies that increase supply without punishing homeowners.
- Remove Barriers to Multi-Unit Development — Streamline the approval process for duplexes, triplexes, and small apartment buildings. Making it easier to build diverse housing types will naturally increase the available inventory for year-round residents.
- Simplify Building Codes to Lower Construction Costs — The "Stowe tax" on construction is partly driven by complex regulations. Modernizing and simplifying building codes can reduce costs without compromising safety, making new housing more financially viable.
- Create Inclusionary Zoning to Set Limits on STR Use — Rather than blanket restrictions, consider zoning approaches that balance tourism with residential needs. This preserves property rights while ensuring neighborhoods maintain their character and long-term housing remains available.