Buncombe planning board delays STR regulations vote in wake of NC Realtors PR campaign

ASHEVILLE - Amid a series of heated public hearings on proposals to regulate short-term vacation rentals, some Buncombe County Planning Board members expressed concern over what they called "misinformation" and "propaganda" surrounding the issue, leading the board to postpone a vote.

At the center of the debate, and alleged misinformation, is the Realtor-funded "No Ban For Buncombe," a local campaign with the slogan "Don't Kill Our Economy," a message the group has delivered across Buncombe County via mail, online and on television screens.

The campaign is paid for by the North Carolina Realtors Association, the Land of Sky Association of Realtors and STR property managers through the Asheville-based STR Trust, an organization comprising local property managers, community members, homeowners, residents, and enthusiasts.

Since 2021, the NC Realtor Association has paid the Raleigh-based Sinclair Public Relations — the organization hired to create the No Ban for Buncombe website — at least $2.4 million to produce various support campaigns for candidates and campaigns across the state through its super PAC "Neighbors Helping North Carolina," according to the N.C. State Board of Elections.

"We had a PR firm help put out data and the facts," STR Trust Chair Chip Craig told the Citizen Times. "People are questioning those facts, but, to my knowledge, they are accurate."

'Well-orchestrated public comment and propaganda'

Despite the campaign to undermine STRs regulations, Buncombe County has proposed grandfathering current STRs, allowing them to continue renting, but limiting them to certain zones and requiring a permit to stay active. Other regulations include restrictions on size, waste management and types of structures that can be used as STRs.

Even as the No Ban for Buncombe insists the proposed regulations on STRs are a "ban," Chris Joyell, the Director of Healthy Communities at Mountain True, told the Citizen Times he felt the language was disingenuous.

In an April 22 statement, Planning Board Vice Chair Ken Kahn felt recent comments from pro-STR speakers dismissed resident concerns regarding community cohesion and housing costs exacerbated by short-term rentals in the Buncombe County 2043 Comprehensive Plan, developed in 2023 to help shape the future of the county.

A 2021 Dogwood Health Trust survey indicated Buncombe County's long-term rental housing gap was 7,699 units. Joyell described the relationship between housing and STRs as "simple economics."

In November 2023, AirDNA reported that there were roughly 4,622 "entire place" STR listings in available Buncombe County, according to a STR Trust January report to the Planning Board.

"You subtract 5,000 units from the supply and the demand is only going to go up," Joyell told the Citizen Times.

A 2017 paper from researchers at the University of Southern California, California State University and National Bureau of Economic Research indicates the increased number of STRs in a region decreases "the supply of long-term rental units."

While some real estate agents and STR owners have disputed the idea that the increased presence of STRs increases housing costs, Joyell said regulation is just part of the equation to develop more housing but is not "the silver bullet."

"If we are really intent on stabilizing rent, stabilizing home costs or bringing them down on some level, we have to use every tool in the toolbox," Joyell said.

Jen Hampton, who represents the WNC Tenants Union and is the chair of Asheville Food and Beverage United, believes the county should be able to regulate how many STRs are on the market, especially as the region faces a "crisis state" of affordability that is pushing more people out.

"It's unsustainable. We're going to be losing so many people that could work in this tourist economy," Hampton said.

Kahn called the recent coordinated pro-STR movement between real estate agents and STR owners "well-orchestrated public comment and propaganda."

Craig stood by calling it a ban.

"It's a ban on future short-term rentals in pretty much the whole county," he said, noting he "would love" to sit down with those who are concerned about housing.

'Not propaganda'

According to a 2021 SmartCity study — paid for by the Land of Sky Association of Realtors — found on the No Ban for Buncombe campaign website, STRs have no significant correlation with home prices in the region.

President of the Land of Sky Association of Realtors Nick Hinton disputed the notion that the campaign is propaganda. He did not share how much the association has spent on the campaign.

Hinton said the NC Realtors Association had given LOTSAR grant money to pay for different studies on the impact of STRs in the area and noted the issue was based on the "membership interests" in the topic, of which STRs are a high priority.

Real estate agents often sell second-homes that can be STRs as "investments," with one of the No Ban for Buncombe advertisements even leaning into the idea. The video features a retired pastor who used his current home as an STR "to get some equity" before moving into it.

At the same time, some real estate agents in the area, such as the Asheville-based Savvy STR Agents, have pivoted to focusing on selling STRs.

Savvy STR Agents is currently selling an "STR estate" in Woodfin as a "residential investment" for $20 million, CEO of Savvy STR Agents Tyler Coon told the Citizen Times in February. The sale would be one of the highest in Buncombe County history if sold at its current list price.

The property is estimated to make $4.2 million a year after the completion of 13 new STRs on the property, the property's buyers guide claims.

Craig, who has been in the rental and real estate industry for 25 years and runs Greybeard Realty, said if the figures the STR Trust and No Ban for Buncombe are providing are wrong then "that's the benefit of putting a pause on this and bringing people together and creating a taskforce."

Craig compiled a report for Feb. 5 Planning Board packet on the STR regulations, outlining specific studies that refute concerns outlined in the comprehensive plan.

While stating that the 2021 Dogwood Study did not address STR regulations, STR advocates have used reports from Corbett Consulting, Oxford Economics and the SmartCity study to refute that STRs are related to housing affordability.

Corbett Consulting is owned by a real-estate investor and the Oxford Economics study was done in partnership with the Vacation Rental Management Association, of which Craig is a member.

"If they're wrong, I'm not aware of them being wrong," he said of the reports.

More: 'Clean and safe' for who? Asheville council hears anxieties around proposed BID

More: Asheville Southside farm sees community support after housing authority pushes for removal

Will Hofmann is the Growth and Development Reporter for the Asheville Citizen Times, part of the USA Today Network. Got a tip? Email him at [email protected]. Please help support this type of journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: NC Realtors Association paid for Buncombe short-term rental campaign