Many love spending summertime on the shoreline, which is why Stonington homeowners cashed in by renting out their houses on sites like Airbnb and VRBO.
It’s been a highly debated issue. Last month Stonington’s Planning and Zoning Commission decided not to regulate short-term rentals, adding more competition to the rental market.
Airbnb ranked Stonington amongst the largest markets in Connecticut according to guest arrivals. In 2016, Stonington saw 2,818 Airbnb guests and raked in $415,219. The town was only behind New Haven with 11,510 guests and $1,896,914 in host revenue; Hartford with 3,708 guests and $459,742 in host revenue; and New London with 2,952 guests and $372,903 in host revenue.
The hospitality industry is most directly impacted by the short-term rental competition.
“I’m pretty shocked by that number,” said Bill Griffin, owner of The Inn at Stonington. He said people are price driven.
Griffin said his business has grown almost every year, including a record year in 2016, adding house rentals aren’t the same as a full service experience.
“Obviously it is having impact,” Griffin said. “Maybe not on us, but clearly on other properties in Stonington.”
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“I would say it helps me,” said Judi Caracausa, broker and owner of Market Realty.
Short-term rentals are also impacting Stonington’s real estate business.
Caracausa said it helps buffer the tax base, makes people keep up their properties and buy more houses, too.
“People who come for the summer or come for a few weeks at a time, those are the people who actually end up buying here,” she said.
While people who put their homes on the short-term rental market do not need zoning approval, Stonington’s director of planning said be aware of rules and regulations within certain neighborhoods, condo associations, bylaws, etc.
Connecticut has 2,400 active hosts who earned more than $11 million in supplemental income last year, according to Airbnb. About 64,000 people come to the state, and averaged a stay of 3.4 nights.
