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.
RRC conducts economic research studies around the U.S.
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