Croatia Moves to Rein in Short-Term Rentals Amid Housing Pressure
- Croatia is weighing new measures to limit STR growth in major tourist cities such as Dubrovnik, Split, and Zadar, as housing affordability concerns intensify.
- Officials are considering rental-day caps and incentives to return units to the long-term market.
- Tourism contributes nearly 20% of Croatia’s GDP, and the country welcomed 21.8 million visitors in 2025. But in hotspots like Dubrovnik, amplified globally by Game of Thrones, STR growth and sustained visitor demand have pushed up housing costs and reduced long-term availability.
- With inflation at 4.3% in late 2025, affordability pressure is growing, particularly for essential workers such as doctors and teachers.
Snigdha’s Views
- Croatia illustrates what happens when tourism becomes deeply embedded in national GDP. When housing for essential workers starts disappearing and inflation remains elevated, “tourism-first” policy eventually breaks.
- We flagged a -5.8% Q1 2025 STR demand decline in Croatia last July. At the time, it looked seasonal and post-COVID normalization-driven. Now, with housing restrictions entering policy debate, the slowdown looks more structural.
- For PMs in tourism-heavy GDP markets, Croatia is a leading indicator: when growth stabilizes and affordability dominates headlines, regulation follows. Not necessarily bans, but caps, gradual tightening, and political recalibration.
Maui Rejects Rezoning Lifeline for 7,000 Short-Term Rentals
- Maui’s Planning Commission voted to deny the creation of H-3 and H-4 hotel zoning districts, a move that would have allowed thousands of STRs to continue operating despite Bill 9.
- The proposal was widely seen as a workaround to Bill 9, now law, which phases out ~7,000 apartment-zoned transient vacation rentals (TVRs), including those on the Minatoya List.
- During testimony, residents including Jordan Ruidas and Leianai Kelikoa opposed the rezoning, arguing Maui faces a housing shortage, not an STR shortage, and that units should return to long-term housing.
- Property owners and STR operators such as Linda Mitchell and Andrew Church supported H-3 and H-4, warning of economic fallout and prolonged uncertainty for long-running local businesses.
- The recommendation now moves to Molokai and Lanai Planning Commissions, but the Maui County Council will make the final decision.
Entities
Bill 9: The “Phase-out Law”
Mandates the total shutdown of apartment-zoned TVRs by January 1, 2029 (West Maui) and January 1, 2031 (elsewhere). No opt-outs. No renewals. No grandfathering beyond those dates.
Minatoya List: The “Target List”
~7,000 condo units previously exempt from hotel-zoning requirements that are now losing their STR rights under Bill 9.
H-3 / H-4: The “Failed Escape Route”
Proposed hotel zoning categories that would have allowed these units to bypass the phase-out.
Snigdha’s Views
- We’ve been tracking Maui Bill 9 since it was first proposed, through all its ups and downs, and it’s now law as of January.
- H-3 and H-4 were effectively a lifeline. By rejecting them, the Planning Commission signaled that unwind paths may be politically harder than expected.
- For PMs, the uncertainty is no longer about whether Bill 9 stands, it’s about whether any meaningful rezoning relief survives Council.
- Map your exposure now. Separate apartment-zoned inventory from hotel/resort inventory. Communicate early with owners about refinancing, valuation, and exit timing.
Evanston Passes Amended Short-Term Rental Ordinance Ahead of Moratorium Expiry
- Evanston City Council voted 8–0 to pass an amended vacation rental ordinance, updating city code just before the expiration of a moratorium on new STR licenses.
- The ordinance formally defines STRs as units rented for less than 30 days, raises penalty fees for violations, and tightens the property manager proximity requirement to three miles.
- It maintains a citywide cap of 144 total STR units, based on a 1:100 ratio of short- to long-term rentals.
- A key change removed a proposed 600-foot distance requirement between single-family STRs.
- Instead, the ordinance now uses broader language requiring that new rentals not create a “negative cumulative effect” on neighborhoods. In multi-unit buildings, STRs are still limited to a percentage of units.
- Council members debated whether removing the prescriptive distance rule introduced too much subjectivity, but supporters argued it gives city staff more flexibility to distribute rentals more evenly and avoid clustering.
- The updated ordinance takes effect as the city’s moratorium on STR licensing expires on March 9.
Snigdha’s Views
- Evanston didn’t loosen controls, it changed the mechanism.
- The shift from a clear 600-foot rule to a discretionary “cumulative impact” standard moves regulation from formula-based approval to interpretive review.
- For PMs, that means compliance becomes less about meeting a number and more about navigating process.
- This isn’t expansion. It’s controlled distribution under a firm supply ceiling.
Snigdha Parghan is a Content Marketer at RSU by PriceLabs, where she creates articles, manages daily social media, and repurposes news and analysis into podcasts and video content for short-term rental professionals. With a focus on technology, operations, and marketing, Snigdha helps property managers stay informed and adapt to industry shifts.
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