From New York to Miami, the vacation rental market has long been under attack — often misrepresented by powerful hotel lobbies and blamed for housing challenges by policymakers and local residents.
But it’s time for Florida to realize that vacation rentals aren’t the enemy, but an economic powerhouse driving growth across the state.
One of the biggest misconceptions about vacation rentals is that they operate in a lawless ‘wild west’ of amateur hosts and out-of-state investors with no regard for local communities. In reality, Florida’s vacation rental industry is highly professionalized, integrated and already one of the most regulated lodging sectors in the state. Property managers, technology providers and a vast network of local businesses all contribute to a sophisticated ecosystem serving millions of travelers each year.
In 2024 alone, vacation rental homes across the state hosted around 33 million guests, generating over $12.6 billion in revenue. These properties adhere to strict state and local regulations covering licensing, safety inspections, background checks, bedbug prevention and even details like dishwasher notices and soap packaging. Human trafficking awareness training, occupancy limits, tax compliance and advertising platform registration further demonstrate the industry’s high level of oversight.
Far from an unregulated free-for-all, Florida vacation rentals follow rigorous safety, tax and operational standards — often exceeding those required of traditional hotels. Meanwhile, organizations like the Florida Alliance for Vacation Rentals (FAVR), an association of property managers and industry insiders like myself, actively campaign for fair regulations and high industry standards across our state.
Florida accounts for 26% of the entire U.S. vacation rental market, contributing an estimated $30 billion annually to the state’s economy — including some $840 million in state sales taxes. In many areas, vacation rentals generate more bed tax revenue than traditional hotels, directly funding local infrastructure, beach restoration and community projects.
Beyond the money, vacation rentals support thousands of jobs across Florida. Property management companies employ local workers in housekeeping, maintenance and guest services. Tech firms create innovative solutions to elevate guest experiences and streamline operations. Local businesses — restaurants, experiences, retail stores and more — thrive from the steady stream of families staying in short-term rentals and spending money in their communities.
It’s easy to scapegoat vacation rentals for issues like housing affordability, but the reality is far more nuanced. Even if vacation rentals disappeared overnight, it wouldn’t result in a flood of new long-term housing — most short-term rental properties aren’t viable as traditional rentals due to location, size or seasonal use. What would disappear, however, is a major economic driver for the state.
A well-regulated, professional vacation rental sector can coexist with long-term housing markets, even contributing to affordable housing developments by attracting investment in towns and cities. The key is balanced regulation that protects residents without stifling economic growth.
Many local governments already have the tools to enforce responsible rental practices, from noise monitoring and occupancy limits to compliance inspections and tax collection. It’s also important to remember that what works for Miami won’t work for Kissimmee, or Indian Rocks Beach. Rather than implementing sweeping bans or heavy-handed restrictions, policymakers should focus on enforcing existing laws, ensuring responsible management, and addressing concerns without punishing an industry that’s so important for Florida’s economy.
During my visit to the Florida Senate in Tallahassee with FAVR earlier this year, I was encouraged by the receptive response from lawmakers. Many senators were eager to understand our industry and work toward solutions that balance community needs with economic prosperity.
Florida has an opportunity to lead the nation in smart, balanced vacation rental policy, one that supports professionalism, fair competition and community engagement. By embracing a regulatory framework that fosters responsible management while allowing the industry to thrive, Florida can ensure that vacation rentals continue to benefit travelers, local businesses and residents alike. It’s time to move beyond the outdated narrative and recognize this industry for what it truly is: a vital and growing pillar of Florida’s economy.
Shaun McCorry is strategic sales leader at Avantio, a technology firm for North American property managers. Based in Destin, McCorry has been involved with the Florida Alliance for Vacation Rentals for almost 10 years, including six on the board of directors.