Buncombe County NC Eyes Sweeping Short Term Rental Changes

Buncombe County Eyes Sweeping Short-Term Rental Changes: What Homeowners and Investors Need to Know

By Dwain Ammons, Realtor with Allen Tate/Beverly-Hanks Contact form for Dwain Ammons, Allen Tate NC sellers listing agent or call (828) 447-0036.

As the popularity of short-term rentals (STRs) surges across western North Carolina, the Buncombe County government is re-evaluating its approach to regulating this booming industry. With Asheville as a premier tourist destination and surrounding areas drawing outdoor enthusiasts year-round, STRs have become an integral part of the local economy—but not without controversy. Here’s a detailed look at the proposed changes, their potential impact, and what homeowners, investors, and residents should consider as these policies evolve.


Background: The Growth of Short-Term Rentals in Buncombe County

The rise of platforms like Airbnb and VRBO has made it easier than ever for homeowners to turn their properties into income-generating vacation rentals. In Buncombe County, where tourism is a cornerstone of the economy, STRs have proliferated, particularly in rural and suburban areas outside Asheville’s city limits.

While STRs contribute to tourism revenues, they’ve also sparked concerns about housing affordability, neighborhood character, and the strain on local infrastructure. In response, Buncombe County is now exploring sweeping policy changes to strike a balance between economic opportunity and community stability.


Proposed Changes to STR Regulations

The county’s current rules allow STRs in many unincorporated areas with minimal oversight. However, proposed changes aim to tighten regulations significantly.

1. Zoning Restrictions

One of the most significant changes under consideration is limiting STRs to specific zoning districts. For example:

  • Residential Zones: STRs may be prohibited or require special permits.
  • Commercial Zones: STRs may be encouraged to reduce their impact on housing availability.

This zoning overhaul would likely push some STRs out of residential neighborhoods, addressing complaints about noise, parking, and safety concerns.

2. Licensing and Permits

The county may require property owners to obtain a short-term rental permit, which would involve:

  • Annual registration fees.
  • Inspections to ensure compliance with safety and occupancy standards.
  • A limit on the number of STRs allowed per owner to prevent large-scale commercial operations.

3. Occupancy Caps

To minimize overcrowding, new rules may set limits on the number of guests allowed in an STR based on the size of the property and available parking.

4. Taxation and Revenue Use

STR owners are already required to collect and remit Buncombe County’s occupancy tax, which funds tourism marketing and infrastructure projects. Proposed changes may:

  • Increase occupancy tax rates.
  • Redirect some revenues to affordable housing initiatives.

5. Enforcement Mechanisms

To address non-compliance, the county is considering stricter enforcement policies, including:

  • Hefty fines for unpermitted rentals.
  • A hotline for neighbors to report violations.
  • Partnerships with third-party companies to monitor online STR listings.

Impact on Homeowners and Investors

These changes will have far-reaching implications for property owners in Buncombe County, particularly those who rely on STR income or plan to enter the market.

For Current STR Owners:

  • Increased Costs: Licensing fees, inspections, and possible tax increases could cut into profits.
  • Zoning Challenges: Owners in newly restricted zones may have to pivot to long-term rentals or sell their properties.

For Buyers and Investors:

  • Due Diligence: Prospective buyers must thoroughly research zoning and permitting requirements before purchasing a property for STR purposes.
  • Market Shifts: Changes could lead to a cooling of demand for homes in previously popular STR hotspots.

For Traditional Homeowners:

  • Neighborhood Preservation: Many residents support stricter STR rules, hoping they’ll preserve the character and livability of residential neighborhoods.

Balancing Economic and Community Needs

The debate over STRs highlights a broader tension in Buncombe County: how to sustain a thriving tourism economy while addressing the housing crisis and protecting community values.

The Pros of STR Regulation:

  • Affordable Housing: Restricting STRs could free up inventory for long-term rentals and primary residences.
  • Community Stability: Fewer transient visitors in residential neighborhoods could lead to stronger community bonds.

The Cons of STR Regulation:

  • Economic Impact: Reducing STR availability could deter tourists, affecting local businesses and tax revenues.
  • Property Rights: Some homeowners view the proposed changes as an infringement on their right to use their property as they see fit.

What’s Next?

Buncombe County officials are expected to host public hearings and workshops before finalizing any new STR regulations. Community feedback will play a crucial role in shaping the outcome, so it’s essential for all stakeholders—homeowners, investors, and residents—to stay informed and engaged.


How I Can Help as Your Realtor

Whether you’re an STR owner navigating these changes, a prospective buyer evaluating investment opportunities, or a homeowner concerned about neighborhood impacts, I can provide expert guidance tailored to your needs. At Allen Tate/Beverly-Hanks, we pride ourselves on staying ahead of market trends and helping clients make informed decisions.

For updates on Buncombe County’s short-term rental policies or to discuss your real estate goals, don’t hesitate to reach out. Together, we can navigate this evolving landscape and achieve your property objectives.

Contact form for Dwain Ammons, Allen Tate NC sellers listing agent or call (828) 447-0036.

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