North Carolina bill would block short-term rental bans by local governments

The legislation seeks to address the current patchwork of short-term rental regulations in the state.

In North Carolina, a new Senate bill seeks to clarify how local governments can and cannot regulate short-term rentals. The legislation would prohibit the outright banning of short-term rentals. 

A 2023 lawsuit in which the judge found the rules imposed by Wilmington, N.C., illegal has influenced how other counties and cities regulate short-term rentals. The result has been a patchwork of regulations across the state. 

The state’s Vacation Rental Act was drawn up long before online platforms like Airbnb and Vrbo were popularized. That law outlines only the rights of tenants, but not those of homeowners. 

The bill notes the positive impact of short-term rentals, including that they provide housing options for "transitory workers, including nurses, tradespeople, and executives.” 

The bill also criticized some local government efforts to regulate short-term rentals: “Cities often frustrate tourism and infringe on property owners’ private property rights by adopting ordinances that inhibit property owners’ right to use their property they see fit.”

In other legislative news, an Alaskan lawmaker has proposed a new bill that would turn the six-bedroom, 10-bathroom governor’s mansion into a short-term rental “when the legislature is not in session and the governor has not reserved the mansion in advance.” (link) 

And in Idaho, a Senate committee is working on drafting legislation to clarify how local governments can regulate short-term rentals, with the goal of protecting renters without infringing on property owners' rights. The bill would block cities and counties from imposing rules on short-term rentals that don't apply to long-term rentals. (link) 

New and Proposed Regulations:

• Montana: A neighborhood dispute landed at the state Supreme Court with attorneys debating how many days qualifies a property as “short term.” (link) 
• Houston, Texas: Some short-term rental operators are considering suing the city if the council passes a new short-term rental ordinance up for a vote this week. (link) 
• Humboldt, California: A majority of the county board of supervisors voted to make short-term rental rules more stringent, specifically those related to agricultural land, neighborhood density limits and standards for access roads. (link)

Other Noteworthy News:

• Pet love: Airbnb reported in its 2025 spring travel trends report that searches for trips with pets have risen by 30% compared to last spring. (link)
• Confusion in the Black Hills: Short-term rental owners in South Dakota’s Black Hills say the patchwork of regulations means “the target is constantly moving.” (link) 
• Wildfire housing: Airbnb is offering free, temporary housing for victims of the wildfires that destroyed hundreds of homes across Oklahoma. (link)