The STR Cap Debate: Data Over Assumptions

I wanted to respond specifically regarding the short-term rental (STR) cap and the perception that it’s driving down business. Relying on assumptions instead of examining the underlying data can lead to the wrong conclusion. The facts tell something very different.

Here are a few key points that I hope help clarify things:

There are more STR’s on the island now than in 2023. Any property owner who had a valid STR license before the cap was put in place still has it if they chose to keep it. In fact, the number of active STR listings on the island has actually increased—from 1000 in July 2023 to 1,100 in July 2025.
Occupancy rates are steady and up 2% for the year. In July 2023, the average STR occupancy rate was 90.4%. In July 2025, occupancy rates were 90%. For the year, more nights are being booked per property, not fewer.
Total booked listings are up as well. In July 2023, there were 995 booked listings. This July, that number rose to 1,100. Again, this indicates more guests are staying in STRs on Folly now than two years ago.
Daily rates have increased. The average daily rate rose from $615 in July 2023 to $747 in July 2025. While that could indicate that costs are rising for STR owners, it does put added pressure on the traveler’s budget, which could influence their behavior once they arrive on the island.
Daily traffic is up slightly, with average bridge crossings rising from 18,476 per day in July 2024 to 18,998 per day in July 2025.

Blaming the STR cap may be an easy explanation, but it overlooks the bigger picture. While some may feel business was slower this season, the data shows strong visitation, possibly even stronger than before the cap. We need to look beyond blaming the Cap and explore other factors driving the slowdown. Tourist numbers remain at or above historical averages, but this year they’re spending less on Center Street, a trend that mirrors national patterns.

In the first half of 2025, US restaurants and bars saw one of the weakest six-month periods of sales growth in the past decade, according to a CNN analysis of Commerce Department data. This year has shown weaker growth than even during the Covid-19 pandemic, when restaurants and bars closed due to lockdown orders.
cnn.com

As mayor, I will use real data to pinpoint the causes of issues facing the City and work toward practical, effective solutions. I welcome more open communication between the City and our business community, because a strong business district is essential to Folly’s economy and a cornerstone of responsible tourism. By working together, we can keep Folly thriving year-round while protecting the unique character that makes our island special.