The Town of Southold on New York's affluent North Fork is considering a drastic measure to limit the number of short-term rental properties, including Airbnbs, to just 1% of its housing stock. The proposal aims to curb issues attributed to influencers and tourists, such as excessive noise, overflowing trash, and parking problems.
Under the proposed legislation, the town would restrict short-term rentals to fewer than 120 homes across its nine hamlets, representing an estimated 80% reduction from the current market. The limited number of available permits would be allocated via a random lottery. Southold Town Attorney Ben Johnson stated, "We are struggling to regulate [the short-term rental market]."
This move comes as the short-term rental market has seen significant growth, generating approximately $27.5 million in host revenue in Southold. However, this boom has coincided with a rise in resident complaints. Officials also point to the strain on the year-round housing supply and the exacerbation of a regional affordability crisis, with the median home price on the North Fork reaching a record $1.25 million, more than ten times the town's median household income.
Southold has technically banned rentals shorter than 14 days since 2015, but enforcement has proven difficult. The new proposal mandates that homeowners seeking a permit must have a valid two-year general rental permit, undergo fire and safety inspections, secure $1 million in liability insurance, and submit plans for parking and trash removal. Properties with cesspools would be ineligible.
A 2025 town report indicated around 640 short-term rentals operating in Southold, with an average nightly rate of $902. The town's proposed crackdown mirrors actions taken in nearby Southampton, where short-term rentals were effectively banned on weekends starting in August 2025 due to similar resident complaints about disruptive behavior from visitors.