Executive Summary
Sydney, Australia, may impose a severe 60-day annual cap on unhosted rentals, potentially forcing over 5,000 properties back to long-term rental markets in high-value suburbs like Darlinghurst and Potts Point. The European Commission plans to unveil EU-wide short-term rental regulations in December 2025 as part of its first affordable housing strategy, marking a major policy shift that could introduce unified restrictions across member states. Princeton, New Jersey, is moving toward requiring operators to claim properties as their principal residence within 12-24 months or convert to long-term rentals, while Maui County may spare approximately 4,500 vacation rental units from phase-out by redesignating certain apartment buildings to hotel districts. Duluth, Minnesota, is considering a one-year moratorium on new short-term rental licenses despite already capping residential neighborhood permits at 120 with only 10 new licenses added annually via lottery. Pullman, Washington, continues reviewing its June 2025 regulations that imposed $200 licensing fees, 10-person occupancy limits, and potential $5,000 violation fines, with changes expected by March 2026.
Developing Regulations
Maui County, Hawaii
Published: October 21, 2025
Regulation Category: Zoning
Summary: A Maui County Council group has recommended modifications to Bill 9, which originally proposed phasing out transient vacation rentals in apartment districts, by allowing over 50 buildings on the "Minatoya List" to receive a new hotel district designation, potentially sparing about 4,500 out of nearly 7,000 units from conversion to long-term rentals only. These changes, which would require new legislation, also include exempting vacation rentals in apartment districts on Molokai from phase-out and considering factors like sea level rise to prioritize current housing needs, providing investors with opportunities to maintain short-term rental operations in designated areas while addressing long-term environmental risks.
Source: Bill 9 reviewed: Maui vacation rentals could be spared
European Union
Published: October 15, 2025
Regulation Category: Licensing
Summary: The European Commission plans to propose new EU-wide rules on short-term rentals via platforms like Airbnb and Booking.com as part of its first affordable housing strategy, expected to be published in December 2025, to address the "social crisis" of housing affordability exacerbated by rising rents and displacement in urban areas. For investors, this signals a shift from traditional EU non-interference in housing policy toward more unified regulations targeting short-term lets, potentially including measures to curb property speculation and financialisation, though specific details remain undisclosed and implementation would depend on member state variations.
Source: EU to propose short-term rental rules to tackle 'social crisis' in housing
Sydney, Australia
Published: October 17, 2025
Regulation Category: Occupancy
Summary: The City of Sydney Council is set to debate a motion this week proposing a 60-day annual cap on unhosted short-term rentals, led by the Sydney City Greens to address the housing crisis by encouraging property owners to shift properties to the long-term rental market. If passed, this regulation update could impact investors by limiting short-term rental operations to just two months per year, potentially returning over 5,000 properties to the long-term rental pool in suburbs like Darlinghurst, Potts Point, Paddington, and Millers Point, while enforcement details and effectiveness remain under discussion.
Source: Sydney to consider new Airbnb crackdown
Hanna, Wyoming
Published: October 20, 2025
Regulation Category: Licensing
Summary: The Hanna Town Council discussed the introduction of short-term rentals like Airbnb and Vrbo during their meeting, noting that the town currently has no specific regulations beyond requiring a business permit, and attendees emphasized the economic benefits and need for such options in the area. The council decided not to implement any new ordinances or limitations at this time, with the mayor expressing support for short-term rental activity to attract visitors, though some members raised concerns about potential impacts on affordable housing and town character similar to nearby communities.
Source: Hanna Council Discuss Short-Term Rental Ordinance
Duluth, Minnesota
Published: October 19, 2025
Regulation Category: Licensing
Summary: Duluth currently has about 180 short-term rental permits in effect citywide, including a cap of 120 for residential neighborhoods with annual additions of up to 10 via lottery, though several hundred more unlicensed properties are advertised online, complicating enforcement amid a housing shortage. The City Council is considering a one-year moratorium on new short-term rental licenses to study neighborhood saturation, enforcement of unlicensed rentals, and potential adjustments like raising fees or streamlining processes, which could impact investors by pausing new entries while addressing fairness for compliant operators. Source: Is Duluth at a vacation rental 'tipping point'?
Princeton, New Jersey
Published: October 15, 2025
Regulation Category: Zoning
Summary: Princeton Council discussed potential regulations for short-term rentals (STRs), estimating 100 to 150 currently operating without oversight, with goals to ensure public safety, preserve neighborhood character, and maintain long-term housing availability. Four options were presented, including a favored phase-out period of 12-24 months for non-principal residence STRs to allow conversion to long-term use or principal residency, potentially requiring operators to claim the property as their principal residence to align with hotel tax obligations; the ordinance draft incorporating feedback could be implemented in 2026, balancing income generation with community respect.
Source: Short-Term Rental Regulation Discussed at Council Meeting
Pullman, Washington
Published: October 15, 2025
Regulation Category: Licensing
Summary: The Pullman City Council has decided to send portions of the short-term rental code back to staff for review, with recommendations due by March, in response to community pushback on regulations approved in May 2025 and effective in June, which require owners to obtain a business license, a $200 initial city license fee (free renewal), and compliance with safety measures like emergency plans, inspections, and a 10-person occupancy limit across all residential zones. Key proposed changes under review include the definition of short-term rentals, prohibitions in multi-unit buildings, parking rules, safety requirement clarity (such as alternatives to in-person inspections), enforcement models including fines up to $5,000 for violations, and application fees, potentially impacting investors by adjusting compliance burdens and legal enforceability to align with state law.
Source: Pullman will take until March to review short-term rental code