https://www.azcentral.com/story/news/local/scottsdale/2023/0...

AI Summary Here for those who don't want to read the article: 

Local governments in Arizona are advocating for increased regulation of the short-term rental industry through proposed legislative changes to address concerns about housing shortages and community impacts. The proposed regulations, backed by the League of Arizona Cities and Towns, aim to grant local officials more control over short-term rentals and address the following key points:

1. **Occupancy Limits:** Local officials would have the authority to set limits on the percentage of housing stock that can be used for short-term rentals. For example, a city may restrict such rentals to occupy no more than 10% of available houses.

2. **Neighborhood Density:** Similar to occupancy limits, regulations could be imposed on a neighborhood level to prevent entire communities from becoming dominated by short-term rentals.

3. **Spacing Requirements:** Cities could require short-term rentals to maintain a minimum distance from each other, preventing the clustering of rental properties and maintaining a balance in neighborhoods.

These proposed changes are in response to concerns arising from a 2016 state law that limited the ability of local governments to regulate short-term rentals. The rapid growth of such rentals has been linked to housing shortages and various community issues. However, in 2022, Arizona lawmakers partially restored some regulatory powers to local authorities by allowing them to establish licensing rules and suspend properties for rule violations.

Short-term rentals now make up a significant portion of vacant homes in some areas, affecting housing availability and pricing. Local leaders argue that these issues impact their communities, reduce workforce availability, and impact state-shared revenue. They emphasize the importance of preserving neighborhoods and addressing the challenges posed by the short-term rental industry.

Overall, these proposed changes reflect the ongoing debate between local and state authorities, as well as the short-term rental industry's impact on housing markets and communities in Arizona.