RRC Associates teamed up with Economic & Planning Systems, Inc. (EPS) this year to conduct a study to evaluate the role of short-term rentals (STRs) in Telluride’s regional economy and potential impacts on the local housing market.
Approximately 78% of visitor accommodations in Telluride are short-term rentals, as there are not a lot of hotel rooms in Telluride. According to EPS Associate Carson Bryant, people are willing to pay “a lot of money” for short-term rentals, as much as $500 to $700 a night during peak visitation months in 2022. “They (short-term rentals) contribute a lot to the overall amount of possible tax revenue that can be collected from lodging in the Town of Telluride,” said Bryant.
There is a large gap between what housing is available in Telluride to purchase and what locals can afford. The average prize for residential properties in Telluride in 2022 was $2.9 million.
Some of the new STR policies recommended by the study included zoning requirements, enforcing limits on the number of rental nights allowed per year, and other taxes and/or fees. A vote to amend the Telluride Municipal Code would be required to implement the changes. In a 2021 Telluride municipal election, residents voted in favor of suspending the release of new STR business licenses and capping the number of licenses for two years.
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