The main issues
The main issues
• Strict short-term rental regulations , like those in New York and Edinburgh , often have unintended consequences , harming tourism and housing markets .
• South Africa ’ s short-term rental industry boosts tourism and employment but faces housing affordability concerns , requiring careful regulation design .
• Balanced regulations , including zoning , seasonal flexibility , and reasonable taxation , are key to avoiding negative economic impacts from restrictive policies .
However , many of these regulations have had unintended economic consequences , often undermining the very goals they sought to achieve . Some cities have experienced housing markets that failed to adjust as expected , while others saw tourism declines , economic slowdowns , or shifts in rental demand to surrounding areas .
With South Africa considering its own set of short-term rental regulations , examining these global case studies provides critical insights into what could happen if policies are not carefully structured .
30 REI MAGAZINE FEBRUARY 2025