STR Regulation Update - What's Actually Changed in 2025 (Quick Summary)

[David Totten]

Been tracking STR regulation shifts for some research I do for real estate coaches. Thought this might be useful for anyone navigating compliance right now.

A few things that stood out:

— NYC's Local Law 18 drove STR listings down over 90% and a 2025 reform bill failed to advance. Near-total restriction remains heading into 2026.

— Austin's new ordinance (effective Sept 15, 2025) requires license numbers in every listing and quarterly tax documentation. One of the most demanding rule sets outside NYC.

— California SB 346 now compels Airbnb and VRBO to share host data with any city that passes a qualifying ordinance. Other states are watching closely.

— Fines for noncompliance now range into five figures — up to $10,000 per incident in Honolulu.

Rural and tourist markets remain more permissive for now — but the enforcement environment has fundamentally shifted from reactive to proactive.

Happy to share the full brief if anyone wants it. No pitch — just sharing what I put together.

— David | Totten Advisory

[Collin Hays]

I suspect that a number of the taxing authorities are implementing the various licensure requirements, etc., for revenue only, and have no real interest in, nor resources for, chasing down those out of compliance.  It's about new money:  If they can grab more cash from 50 percent of the investors, that's a lot of money in the coffers that they didn't already have.

We are seeing this is Sevier County, TN, 18 months in from their new "inspection" program.  Pages of requirements, annual fees, and supposed inspections, with no resources to pull it off. For the first year, the county was at least trying to make it appear that it was serious business. They've grown tired of that.  

I wish I wasn't so cynical about it, but that's how it all seems to be taking shape in various places around the country.