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Florida’s Short-Term Rental Surge Fuels Housing Strain and Local Backlash

John Hawley

Jun 1, 2025

Florida’s expanding short-term rental market is intensifying conflicts over neighborhood livability and housing access, as cities like Jacksonville Beach confront rising public safety concerns and dwindling long-term housing—all while lacking the regulatory power to respond effectively.

Florida’s booming short-term rental industry has brought new economic opportunities to property owners—but it’s also fueling tension in communities where residents say quality of life and housing stability are eroding. Cities like Jacksonville Beach are experiencing sharp increases in short-term listings, leading to mounting frustration over public safety issues, community disruption, and a shrinking supply of homes available for long-term residents.

As state policies restrict local governments from fully regulating vacation rentals, municipalities across Florida are left grappling with growing consequences—without the authority to act decisively.

A Growing Flashpoint in Jacksonville Beach

In Jacksonville Beach, the number of short-term rentals has surged past 500, transforming residential neighborhoods into high-turnover lodging zones. Residents report frequent disturbances tied to unruly guests, weekend parties, and, in some cases, serious criminal activity. In the past year, local law enforcement responded to multiple incidents involving weapons, drugs, and gang-related gatherings at short-term rental properties.

While city officials have implemented a registration system and occupancy limits, enforcement remains limited under state law. Florida’s preemption statute prohibits cities from banning short-term rentals or regulating the duration and frequency of stays, unless those rules were in place before 2011. Jacksonville Beach’s efforts to tighten oversight have been largely symbolic, and community leaders are urging state lawmakers to reconsider the balance between property rights and local control.

Housing Access Undermined by Short-Term Listings

The influx of short-term rentals has also worsened Florida’s housing crisis. According to economists at Florida Atlantic University, the rapid conversion of homes and apartments into vacation rentals has diminished the state’s supply of long-term housing. As more units are redirected to the short-term market, competition for traditional rentals has intensified—driving up prices for permanent residents.

In Jacksonville, neighborhoods like Riverside, Murray Hill, and the Southside have seen notable increases in short-term rental activity. AirDNA data shows that Jacksonville’s inventory of active vacation rentals rose 26% in just one year, with listings now concentrated not only near the coast but throughout the metro area.

Economists say this trend is particularly harmful in cities where housing supply is already tight. Every unit turned into a short-term rental is one fewer option for local families, service workers, or new arrivals seeking long-term stability.

The impact extends beyond traditional investment. A growing practice known as “Airbnb arbitrage” has emerged, in which tenants lease residential properties and then sublet them as short-term rentals—often without the property owner’s knowledge or consent. While profitable for the renter, this practice can leave property owners exposed to legal liabilities and reduce the availability of long-term housing even further.

Local Governments Call for Regulatory Authority

Jacksonville Beach is not alone in its push for reform. In 2024, city officials sent a formal request to Governor Ron DeSantis urging him to veto Senate Bill 280, which would have created a statewide registry of short-term rentals while reducing local governments’ remaining regulatory powers. City leaders argued that their ability to protect residents from the negative impacts of vacation rentals was already too limited.

DeSantis ultimately vetoed the bill, but state lawmakers remain divided over how to balance statewide consistency with the need for local flexibility. Meanwhile, municipalities like St. Petersburg and Hillsborough County are among the few able to enforce stricter rules—thanks to pre-2011 ordinances or specific zoning authority. St. Petersburg prohibits rentals of fewer than 30 days in most residential zones, while Hillsborough County restricts vacation rentals to areas specifically zoned for such use.

These examples show how local oversight can be used to preserve neighborhood character and manage tourism—yet most Florida cities no longer have the legal ability to adopt similar measures.

A Tipping Point for Policy and Politics

The debate over short-term rentals touches on several overlapping concerns: housing affordability, community safety, tourism economics, and property rights. While supporters of platforms like Airbnb argue that these rentals support Florida’s tourism economy and empower homeowners to earn extra income, critics warn that unchecked growth is damaging local communities and pricing out residents.

Public sentiment reflects this divide. Surveys show Americans generally view short-term rentals favorably—but they also express concern over misleading listings, safety risks, and neighborhood disruption. In Florida, where population growth continues to outpace housing production, the issue has become particularly urgent.

Until new legislation is crafted that more clearly defines the responsibilities of state and local governments, Florida communities will continue to bear the brunt of a system designed to prioritize individual property rights over neighborhood stability and housing access.

Without structural reform, the state’s short-term rental market will likely remain a profitable but polarizing force—contributing to the very housing instability many cities are desperately trying to solve.

Florida Condo assessments skyrocket
Florida Condo assessments skyrocket
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