Voters on Nantucket again rejected a measure that would have officially legalized short-term vacation rentals on the island.
At Tuesday night’s annual town meeting, residents rejected a proposal that would have enshrined the operation of short-term rentals in Nantucket’s zoning laws. Earlier this year, a judge ruled that the long-standing practice was not legal under the island’s zoning bylaws if the property’s primary use is as a short-term rental.
Despite the vote, Town Counsel John Giorgio said existing rental contracts for summer 2024 would not be affected.
“Nantucket has changed dramatically ever since the short-term rental (STR) phenomenon,” said resident Nat Philbrick. “Our economy is not dependent on STRs. It’s dependent on summer people wanting to come here because Nantucket is a special place. My concern is that if STRs are allowed to continue unabated, Nantucket will become a soulless parody of the place on which its reputation as a historically interesting summer resort is based.”
A short-term rental is a house or apartment that is rented for short periods, generally less than one month, usually for vacation stays. Many are offered by property owners on platforms such as Airbnb.
In recent years, short-term rentals have been controversial on Nantucket, with supporters saying they are essential to the island’s tourism economy. Opponents, however, say the churn of tourists in residential neighborhoods is disruptive to year-round residents and that speculation by investors interested in establishing new rentals has driven up home prices and exacerbated the housing crisis.
The Tuesday vote is the fourth year in a row town meeting rejected proposals to add short-term rentals to the town’s zoning code and clarify their legality.
Resident Robert Bates, the former deputy chief of the Nantucket Fire Department who said he moved to the island in 1989, said at that time it was the norm for a family to rent a home to live in, but now, residents and workers end up overcrowded in small homes in order to afford somewhere to live.
He pointed out that there was a dire need for workforce housing on Nantucket, referencing other articles on the town meeting warrant proposing funding for housing for town employees and seasonal workers such as lifeguards.
“We need to get back to a point where you can afford to live here,” he said. “You have firefighters who commute [to the island]. That means they’re not available at 2 o’clock in the morning. They can’t get here till 7 a.m., so hopefully they’re not needed. ... We need more housing that is year-round, not short-term rentals.”
A report by the UMass Donahue Institute last year found approximately 2,789 short-term rentals on Nantucket as of August 2022, totaling about 9,100 rooms or 92% of the total lodging rooms on the island. In contrast, hotels, inns and other lodging establishments provided only about 840 rooms.
The study found that short-term rentals produced about $7 million in tax revenue annually, or about one-quarter of what the town spends on school salaries or one-third of town salaries.
In 2022, Nantucket residents voted at town meeting to establish a short-term rental registry requiring operators to obtain a certificate of registration from the Board of Health. While the opening of the registry was delayed, registration opened in March, according to the Nantucket Current. Formal enforcement will begin on Jan. 1, 2025.
Also in 2022, resident Cathy Ward sued the Nantucket Zoning Board of Appeals and her neighbors, Peter and Linda Grape, for operating of a short-term rental next door to Ward’s home, according to the Current. In the lawsuit, Ward said the rental was disruptive as visitors came in and out, made noise, left outdoor lights on all night and let their dogs run around.
In March, Judge Michael Vhay ruled that contrary to previous belief, the town’s zoning did not allow for short-term rentals as the property’s primary use. Vhay sent the issue back to the Nantucket Zoning Board of Appeals to draft new zoning that allowed the practice to continue.
Article 59, which was drafted by resident and local attorney Steven Cohen in February before the court case was decided, would have allowed short-term rentals everywhere, making the judge’s decision moot. The town’s Planning Board recommended approving the article.
Cohen said during the meeting that his proposal would simply allow Nantucket to continue offering short-term rentals as it has for decades without any confusion about the legality.
“If we ban short-term rentals what we’re doing is decimating our local economy,” he said. “[Opponents] want less summer visitors and less Nantucketers here to support them because we have so many people. There’re more people on the road, you need more schools and you need more hospitals.”
The article, which required a two-thirds majority to pass, received a vote of 713 in favor and 782 against.
A second article dealing with short-term rentals banning corporations from operating them on Nantucket was approved by a narrow majority of 592 to 545. The text of the article stated that the goal was to “protect the time-honored tradition of home rentals” on the island.
Corporations that already own properties used as short-term rentals will be allowed to continue operating them, but if those properties are sold they will no longer be exempted from the bylaw.
The 2023 UMass Donahue Institute study found that about 77% of short-term rentals are owned by off-island residents, and about 45 owners owned more than one short-term rental property.
The next town meeting is expected to be held Sept. 17, at which time residents are expected to again take up zoning for short-term rentals.