Vacation Homes and Airbnb’s At Risk in Colorado Due to New Law

Tourism is one of the biggest factors in Colorado's economy. Just last year, tourists spent the most amount of money in Colorado, which is great. In 2023, tourists spent $22.9 billion visiting our cities and towns.

Of course, tourism helps Colorado in many ways. However, new legislation might impact how tourists travel to our state.

Short Term-Rentals in Colorado

Airbnb and short-term rentals have become very popular in this state. There are both positives and negatives when we talk about short-term rentals. On one hand, short-term rentals are great for visiting other areas in Colorado.

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I short-term rentals when I feel like a little vacation from my home in Fort Collins. They are often more cost-efficient than hotels.

On the other hand, short-term rentals are adding to our housing shortage issue. Costs of homeownership and rent have consistently been rising over the years and one could conclude that the lack of homes available is directly linked to short-term rentals.

Taxes for Property Owners in Colorado

Colorado lawmakers are trying to find a solution to Colorado's rising housing costs. Since many of these homes are empty the majority of the year, many cities and towns are supporting extra taxes on short-term rentals.

These mountain towns want to push short-term homeowners to make their Airbnb and short-term rentals into rentals so residents can have affordable housing.

The organization is known as CAST, the Colorado Association of Ski Towns. There are already additional taxes for some towns in Colorado. Many of the short-term rentals are used during skiing and snowboarding season, however are left empty during the summer months.

The Colorado Association of Ski Towns will meet with the legislature at the beginning of 2025.

Source: Summit Daily