Alders Propose Ban on Investor-Run Airbnbs; Public Hearing Oct. 22

Short-term rentals like Airbnb and Vrbo would be banned in New Haven unless the host lives at the property, under an ordinance three alders have filed with the Board of Alders. The proposal gets its first public hearing on Thursday, Oct. 22.

The ordinance, OR-2026-0039, was submitted by Wooster Square Alder Mandy Martinelli, Dwight Alder Frank Douglass and Morris Cove Alder Leland Moore, the New Haven Independent reported. The Board of Alders referred it to its Legislation Committee on Oct. 5, according to the city’s legislative records.

Why the alders say it’s needed

In a cover letter quoted by the Independent, the three alders tied the proposal to a “housing affordability crisis,” saying local rents have risen 53 percent since 2023.

“The rapid conversion of long-term residential housing units into commercial short-term rentals directly inflates rental prices, shrinks our available housing inventory, and causes the displacement of long-term neighbors and working families from their communities,” they wrote. They called the ordinance “a necessary first step.”

Martinelli told NBC Connecticut that Wooster Square has felt it first. “Since we’ve become the pizza capital of the world, we’ve become quite the tourism hub,” she said. She told the station that three short-term rentals had popped up on her own street in the past two years.

“What we’re trying to do is encourage you to have long-term neighbors here,” Martinelli said.

What the ordinance would do

Based on the text filed with the Board of Alders:

• Vacation rentals banned. Renting a unit for 30 days or less when no eligible resident lives there as a primary residence would be prohibited. Hotels, motels and bed and breakfasts are not covered by the ban.
• Home-sharing allowed, with a license. An owner or “long-term resident” could rent out their own primary home for short stays. A long-term resident is someone who has lived in the unit for at least 12 months.
• Licensing through LCI. Hosts would need a home-sharing license from the Livable City Initiative, good for up to three years. The license number would have to appear in every listing.
• Limits on guests. No more than two separate visitor groups per date, and occupancy capped at the lesser of 10 people or two people per bedroom, not counting minors.
• One per host. A host could operate only one home-share.
• No signs. Exterior signs advertising a home-share would be prohibited.
• Public housing excluded. No license could be issued for units owned or operated by Elm City Communities, the city’s housing authority.
• Platforms must check. Booking platforms would have to verify license numbers and report to the city monthly.
• Fines. Violations could bring a $250 fine for each day.

If adopted, the program would take effect March 31, 2027.

Who supports it, and the numbers

The labor-backed group New Haven Rising has been circulating a petition for short-term rental rules, saying the city needs 8,500 more housing units to stabilize rents, according to the Independent. The city’s Affordable Housing Task Force recommended regulating short-term rentals back in 2018, the Independent reported.

The UNITE HERE union, which backs the proposal, told NBC Connecticut that property managers and several downtown apartment buildings listed about 1,000 short-term units this summer. “We want to win more affordable housing in New Haven and a more affordable future for people, and this is one ingredient in a very complex agenda to get there,” said Taran Samarth of UNITE HERE. The data site AirDNA lists 728 active short-term rental listings in New Haven, the Independent reported. The Courier has not independently verified either figure.

The alders’ letter says 15 other Connecticut towns have adopted similar rules. A 2023 report by the South Central Regional Council of Governments found short-term rentals are banned in Colchester, East Lyme, Norwich, Sprague and Waterford, according to the Independent.

What neighbors are saying

Not everyone wants a ban. Jonathan Banco, a resident interviewed by NBC Connecticut, told the station he sees value in limits aimed at outside investors. “I do understand, you know, if it’s corporations that are buying up apartments from outside of the city and renting them for profit, they don’t have the same stake, maybe in the community as, you know, owners or people that live here,” he said. “I think the community aspect is important in New Haven, in particular in Wooster Square.”

Some residents told the station that homeowners should be able to rent their properties as they choose. Airbnb did not respond to the Independent’s request for comment.

How to weigh in

The Board of Alders’ Legislation Committee will hold a public hearing on the ordinance on Thursday, Oct. 22, at 6:30 p.m. in the Aldermanic Chambers on the second floor of City Hall, 165 Church St., according to the meeting agenda. The meeting can be watched on the Board of Alders’ YouTube channel.

Written testimony can be emailed to publictestimony@newhavenct.gov before 2 p.m. on the day of the hearing. After the committee acts, the ordinance would go back to the full Board of Alders for a final vote.

Photos: Rhododendrites via Wikimedia Commons, CC BY-SA 4.0; Emporostheoros via Wikimedia Commons, public domain.

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