Approved by the Select Board in January 2023, the University of Massachusetts Amherst Donahue Institute (“UMDI”) conducted a study on the short-term rental market in Provincetown. The study examined current practices nationwide around short-term rental regulation and identifies what lessons these regulations may offer to Provincetown, especially regarding increasing the availability and attainability of year-round housing.
The final report was delivered in September 2023 and presented to the Select Board at their September 25, 2023 meeting.
Some key findings and takeaways from the report:
- The primary use of housing in Provincetown is for vacation homes.
- Provincetown's population grew by a quarter in 2020.
- Home price growth in Provincetown is outpacing income growth.
- Active STR listings in Provincetown are down by 20% from 2019.
- Provincetown's housing market is influenced by wealthier cities in the Northeast.
- Homeowners can earn more money renting short-term compared to long-term, while retaining use of the home for their own personal use.
- Findings suggest homebuyers are not buying homes in Provincetown solely to use as short-term rentals.
- Incentives are an alternate pathway to increasing supply.
- The predicted impact of any STR regulation on the affordability of housing in Provincetown is likely small.
- Provincetown may still wish to restrict STRs in various ways with a goal of encouraging homeowners to continue to have a connection to the community.
- Findings suggest that targeting workforce housing through continued building and providing incentives where useful is likely the most direct path to increasing accessibility of such housing.