It’s not your imagination. The number of single-family homes used as short-term vacation rentals has increased by 60 percent in two years across Flagler County, while the number of vacation rentals in Palm Coast alone, where most of the growth is concentrated, has surged by 70 percent, with the overwhelming share of those in single-family homes, condos or town houses.
The total number of properties used as vacation rentals–including homes, apartments, hotels, motels and miscellaneous properties–increased to 1,621 as of October 2024, the latest numbers available from the Flagler County Tax Collector’s Office as they reflect the last completed financial quarter. That’s up 29 percent from the 1,252 recorded by October 2022.
In Palm Coast the number of properties used to the purpose rose from 342 two years ago to 581 by last October. The number includes a handful of hotels, but the overwhelming majority of the total are single-family homes, condos and town houses.
The numbers are a clear indication of the astounding growth in the local vacation-rental business, most of it in the heart of residential communities, such as Palm Coast’s C-Section (where they are particularly concentrated) and Flagler County’s unincorporated Hammock, where houses are being built by vacation-rental companies specifically for the vacation market. The numbers are also an indication of the challenge traditional hotels and motels are facing as they try to keep their rooms filled–and why there has not been a similar surge in hotel-building either in Palm Coast or Flagler County. The rising Margaritaville Hotel in Flagler Beach is an exception, though its future, which has not begun, has yet to be proven in the new environment.
Flagler Beach has seen a 22 percent increase in properties used for short-term rentals in the last two years, from 165 to 202. There has been no increase in the number of vacation rentals in Bunnell, Marineland and Beverly Beach over the last two years: it’s been stuck at 18 for the combined areas.
The local numbers contrast with a reported slowdown in the growth of short-term rental properties in the country, suggesting that Palm Coast is still in catch-up mode, and that the growth may not continue as sharply–especially if the larger number of available short-term, rentals makes it more profitable for homeowners to convert to long-term rentals, or if a local housing crunch persists. Local housing supply, however, has been at its highest in 10 years.
For all the surge in vacation rentals, there has not been an equivalent surge in tourism-tax revenue for Flagler County–a strange dichotomy that raises a legitimate question: are all vacation-rental property owners paying the tax? A 5 percent tourism surtax is levied on all short-term rentals, including vacation rentals. The tax generated $4.3 million in the last fiscal year, down from $4.6 million last year, and down from $4.4 million in 2021-22, even though this was to be a revenue year fully recovered from the Covid pandemic.
Newly-elected Flagler County Tax Collector Shelly Edmonson presented the latest numbers on vacation rentals to the Tourist Development Council at the council’s quarterly meeting this morning, and as part of the larger picture of tourism revenue in the county. “We’re chasing down folks if they don’t pay, and making sure that they do,” she said. “We’re doing tax warrants, we’re putting notices on doors, we’re sending certified letters. We’re doing all the things to make sure that they’re compliant.” The tax office has five ongoing enforcement actions and eight active investigations.
Single-family homes, condos, town houses and duplexes account for 92 percent of the countywide total properties used for short-term rentals. In comparison, just 16 of those properties were traditional hotels or motels. Eight were RV or campgrounds, and only 44 were single rooms, or partial vacation rentals, used in the property of an owner-occupied house. There has been no new hotel or motel construction in Palm Coast in the last two years, so the growth in vacation rentals is essentially all in home-type short term businesses.
There are 63,911 housing units in Flagler County, with just under 2.5 percent of them used as vacation rentals. “You know of significant structures being built, new hotels and that sort of thing,” Edmonson said. “But you know, all the in-betweens [meaning short-term rentals], you can see there’s a significant increase in the comings and goings of those.”
Unincorporated Flagler County was ground zero for the vacation-rental industry’s surge a decade ago. That has slowed down. In the last two years, unincorporated Flagler saw the addition of just under 100 rentals, a 13 percent increase, to a total of 820–still considerably more than Palm Coast.
The figures were especially timely since the Palm Coast City Council a week ago, and after a seven-month slog of debates and rewrites, approved its first-ever vacation-rental ordinance. The ordinance regulates maximum occupancy (10), noise, trash, registration procedures and parking. It does not regulate where or when vacation rentals may be operated, or for how long during the year: any dwelling may be used to that end, and for as often as the owner wishes. (See: “Palm Coast Enacts Vacation Rental Regulations as 10-Guest Limit Survives, But Milestone May Be Sort-Termed.”)
The council approved the new ordinance somewhat in the dark about the actual number of short-term rentals in the city. The number was based on estimates. The tax collector’s figures provides the most concrete evidence of actual rentals that now must register with the city, and pay the associated fees.
The reported figure of “well over 200 such rentals in the city,” as reported here last week, is a gross undercount. The city had estimated that it would collect $123,000 from existing rentals. Based on the numbers presented by Edmonson, if the city were to charge the $275 registration fee per rental, and the additional $75 inspection fee, it would generate closer to $200,000. The revenue is to underwrite code enforcement of the city’s vacation rental industry, which has created friction with permanent residents and caused some to sell their homes and leave the city, according to representatives of the Canal Community Coalition. The coalition was established by permanent residents of Palm Coast’s C-Section to press the city to regulate short-term rentals.
The Tax collector could not say where precisely the vacation rentals were in Palm Coast. “We do know where they are. We don’t have any data to provide exactly where they are in our tourist development module,” she said. “The nature of tourist tax, we’re just so limited on on what we can provide.” But as Palm Coast builds a registry, those addresses will be a public record. Flagler County has a similar registry.
See Edmonson’s report for the year ending in October 2022 here, and for the year ending in October 2024 here.
Jason says
The title is a little sensational isn’t it? I’m not imagining anything because it’s not important and I have other things to worry about.
Not a single explanation of what short term rental even means either. A day? Week? A month?
And Palm Coast makes up 0.9 percent of these rentals. Yes, less than 1% of all rentals are in Palm Coast. The way people act and comment you’d think it was 95% and the world was coming to an end.
Seven day a week worker says
Jason,
If you don’t know what qualifies as a “short-term rental” why don’t you look it up? I know, you’re too busy making a living to take time to do your due diligence. No one else in Palm Coast is trying to make a living except you.
I’m getting tired of hearing about the “working families” and “us business owners” and “young families trying to earn a living”. Sick of hearing about it. EVERYONE is trying to earn a living and has other things to worry about.
GET EDUCATED. Do some research. Why don’t you look up (Google or your other preferred search engine) what the definition is of a “short-term rental” in Palm Coast, in Flagler County and the State of Florida.
Sorry to hear you can’t deign to do your own research because you “have other things to worry about”.
That’s one very condescending post and I’m sick of hearing from you people about how rough you have it.
Pogo says
@If only there was a way to know — things
https://duckduckgo.com/?q=airbnb+flagler+county&ia=web
or
https://duckduckgo.com/?q=airbnb+florida&ia=web
Keep on winning — or whatever it is.
Endless dark money says
Is this unexpected? Companies will purchase most of the homes and rent them back to people or use them as vacation rentals. Normal people cannot compete with companies for homes but this is the land of greed. Wait till there’s a disaster. For example I bet companies will buy up the land in LA after the fires for pennies on the dollar as normal people loose everything and get conned by “insurance” companies that make money by denying them. That’s the real looting. Also how many jobs in Flagler pay enough to purchase a home in the county in the first place?
Ed P says
The new estimate is anemic as well. Everyone should report all short term rentals to the city or county based on their locations. These are not our neighbors but business people who are gaming the system, changing our quiet neighborhoods one house at a time.
Be sure they are registered, paying proper taxes and complying with noise and parking regulations. How would these “business owners” feel if the shoe was on the other foot.
They do not qualify for homestead allowances. Don’t be shy, call the hosts direct when problems arise, report unresolved issues to the website.
The real number of short term rentals are probably twice the current registered number, it’s an epidemic. The tax collector needs your help.
JimboXYZ says
Might as well rename this city Alfinville ! That moment when you realize (Un)Affordable Housing was just smoke & mirrors.
Joe D says
In reply to Jason:
for the purpose of this regulation (someone please correct me if I’m wrong), a “short term rental” includes properties rented for 6 months or less (and require registration and taxes/fees). Hence , you see long term leases stating “6 months and 1 day” or longer, for a true 6 month or more none vacation rental property. They pay taxes on their rental income, but there are no additional taxes or fees with “regular” long term leases.
Ron says
Once again this proves that the State is unqualified to regulate vacation rentals. The 2011 Senate Bill must be repeal now!
Our local governments should regulate all aspects of vacation rental operations in their municipalities.
The States licensing authority DPBR does not inspect these one family dwellings prior to allowing them to operate with a state license or share the address or owners name with the local municipality where they are located.
Tom Hutson says
Imagination , Big NO! Palm Coast residents stop your crying, the past elected officials that you elected created the ordinances allowing for Condos, duplexes, AirBNB rentals built in single family residential neighborhoods. No thoughts for the numbers of patrons or cars in any one lot. Now they have a ten person limit in any of these units. Where is the limit for off street parking in front of these buildings? There is no requirement for these buildings to provide off street parking. But, yay, our greedy neighbors are making a buck on the backs of their neighbors. The reality is that current residents are trying to close the barn door after the horses have already left. I personally agree with and feel your pain.
Charles says
The ex Mayor Alfin allowed all his building buddies to come in and build where ever they saw a vacant lot, so we know who to blame.
As ever says
And who backed ALFIN and destroyed / crucified Alan Lowe so Alfin would win? Your always present behind the scenes FLAGLER COUNTY REPUBLICAN EXECUTIVE COMMITTEE.
For the benefit of Lance Alred, note I wrote “backed”, not endorsed . ..
The Flagler County Republican Executive Committee destroyed and continues to destroy Alan Lowe behind the scenes whenever Alan Lowe tries to run against one of their candidates. They did it to Alan Lowe when he ran against ALFIN so we got Alfin and it was a disaster. They did it again when Alan Lowe ran against Pontieri, and we ended up with Pontieri.
If Lance Alred has a problem with this and says I need to get my facts straight, I was there and I know what went on behind the scenes with the false character assassination and with Alan Lowe’s name being intentionally left off the slate cards listing all the Republicans to vote for at any given election. I know what I’m talking about.
Tired of it says
No, it isn’t an alarmist headline. Short term rentals have changed the character of our once peaceful neighborhood. The strangers hanging about, the parking on the swales, the noise, the loud music, the piles of trash, the comings and goings late into the night. The “property managers” that don’t show up for weeks and let the grass and weeds and fallen branches lay everywhere. I bought in an area zoned as residential and now there are businesses everywhere. Do they pay more in taxes? Do they carry business insurance? And as for patronizing local businesses and restaurants…they rent these houses, instead of the local hotels, so they can cook their own meals to avoid going to the local restaurants. The only ones getting anything out of this are the property owners. And the spinekess politicians we elect are doing it to us.
Laurel says
Oh, so, it’s not just a few poor people trying to make a living? No, it’s investors who do not live here, pushing out the residents.
Both city and county commissions are negligent allowing this to happen to single family zoned neighborhoods. This is 1,600 homes off the market. People are trying to find affordable housing here, and the vacation rental market is scooping them up, which increases the cost of those that are left. So, more and more housing units are built, but, low and behold, they are often being built by more and more investors. Y’all were warned about this.
Six hundred homes in Palm Coast alone, times the allowed ten people (not counting toddlers) is quite an increase in the population using the streets and facilities paid for, not by the vacation rental owners, but by the taxpayers. This is not even considering the Hammock, that has more commercial units than the city. What do the taxpayers get out of this? More tourism? How does this help the average homeowner? It doesn’t. People are leaving.
The Hammock, until recently, has been a tight knit, small community. Now it’s a cluster f**k of strangers. Publix, and some of the newer businesses, do not cater to the local community, they cater to the tourists. More junk food at higher prices. One quart of Meyenberg Goat milk, at Publix here, is $7.55. One quart. I found it at Trader Joe’s for $5.49. Why is it $2.00+ more here? Because they can get more from the swarm of vacationing strangers. This makes the area unaffordable for the working people who live here, and it sure looks like our representatives don’t care. Well none live here, so…the traffic jam is not their problem.
Palm Coast (not the county) will add another Code Enforcement Officer, because they cannot keep up. The county only has two, with many more commercial units in the Hammock, so they cannot keep up either. Vacation rentals are notorious for changing the structure of a unit after it has been inspected. Where is the safety factor in that?
Someone here commented that there should be a designated area for vacation rentals, and I agree. The area like Town Center makes sense. Having all these units bought up by investors ruins neighborhoods, and chases our neighbors away.
Jason says
@ Joe D, thanks for that info. But my point was that if you read the article that you’d never know what short term rental even meant. If the article was meant to educate you then you would expect to lay out some basic facts about what a key term even means. I honestly didn’t know that short term was 6 months and it is a lot longer than I would have assumed it to mean.
Honestly, the entire scheme by the county/city to regulate short term rentals is just a money grab. I’d love to know what the inspection fee actually goes towards. Are they inspecting every hotel room today? Does this apply to time shares?
This article left me with soo many questions.
Laurel says
Jason: Please, if you have questions, ask here.
Short term rentals, aka vacation rentals, are nothing more than motel units that are given the name “vacation rentals” to make these units seem like homes. They will advertise “stay in my home.” Un-vetted strangers can stay one night and go. They do this by reserving online. There is no front desk. You, *neighbor* are the monitor. There is no code enforcement on weekends. You call the sheriff.
These motel units started out to help people make money during the recession, but it continued on, and exploded, and investors, investor groups, realtors and companies started buying up these “homes” and marketing them. These units are advertised, and encouraged, by multi-billion dollar, world wide companies like AirBnB and VRBO (vacation rental by owner). It should have been extended as bed and breakfasts only, where the owner, or manager, lives on site and is monitoring the guests.
These motel units are defined by the county as “commercial” units. These commercial units do not have to comply by the same rules as other commercial units. A commercial business has to be 100′ from any residential building but a STR (short term rental) can be as close as 10′ away, or as in a condo or apartment, a wall away. They do not have to jump through the hoops that other businesses do to comply. They do not have to be ADA compliant. They are inspected far less frequently than other hotel or motels. Other hotels or motels do not allow 10 people, not counting toddlers, per room, but this is actually considered a *cap* in vacation rentals.
Most of these rentals have normal driveways that do not accommodate the number of cars that people use to get to their destination. Ten people, and endless toddlers, usually take more than two cars. I don’t think that the city, nor the county commissioners, even thought about that for one second. I’ve seen houses advertise for 16 people here in the Hammock. This is in a “single family residential” zoned neighborhood.
By the way, these strangers renting these motel units are NOT our neighbors, even thought they sometimes think they are. They are here for the “experience.” These units are frequently rented for get togethers and parties of unrelated groups. A regular home has parties now and then. Vacation renters are in party mode. If you live in a condo, or subdivision, with a common area, you common area is shared with a revolving door of strangers. Since there is no front desk, it’s you they come to and ask the same questions, over and over, and over again.
Add to this, all these units, that are meant for homes, are taken off the market for those searching for affordable homes. Rents are increased, as long term rentals come off the market as well. Companies, like Publix, take advantage of the situation, and charge accordingly. The Hammock is rapidly becoming unaffordable for the working class, many of whom have lived here for generations. The commissioners, and state representatives, mostly Republican, do not care. They want the bed tax, like our commissioner stated, and who does not live here.
To top it off, the vast majority of owners and investors, 90% or more, do not live here. They do not live in Palm Coast. They do not live in Flagler County. They live in other cities, states and even outside the country.
Vacation rentals belong in commercial zones, or zones that are mixed and promote vacation rentals from the beginning. They do not belong in residential neighborhoods, where people buy into to live as families. Long term rentals are different. These people are vetted, and have a commitment to the neighborhood.
So, Jason, please continue to ask.
john says
The investors came into Flagler County and they are doing a great job of destroying Flagler County and the county and city officials don’t seem to have a hold on it so we are watching the county and city go down the drain.
Try driving around Palm Coast during the day it is bumper bumper traffic everywhere.
Ron says
First order of business is finding an individual from the Hammock to represent the barrier island on the County Commission. This individual must have the ability to protect our neighborhoods from these transient public lodging business establishments, vacation rentals.
This individual needs to educate each Tallahassee senator and representatives.
But in the mean time maybe we should try to get a petition together asking all constituents if they are in favor of eliminating all vacation rental operations in all residential neighborhoods.
Doing a survey on this issue we found that 98 percent of the residents do not want to live next door to one of these transient lodging dwellings.
By the way a vacation rental conducts transient operations for one day up to 30 days or less. Big difference from a short term rental.
Laurel says
Start the petition, Ron, before DeSantis finds reasons to make the action difficult or illegal. I’ll sign it.
oldtimer says
part of the problem is long term renters who the sublet rooms out to help with the rent. I have a few on my street, cars parked in front yards, in swales and occasionally on my property. The homeowners don’t live here so it doesn’t affect them
Sherry says
@ Laurel, Vacation Rentals are a huge problem for all the reason you stated and more. The AirBNB and VRBOs of this world do “NOTHING” to keep vacation renters from causing the problems you have listed. Oh sure they published a review of the renter that is written by the property owner. . . unfortunately, the owner is often absentee and could care less about the “local” problems caused by renters.
It’s a world wide problem for affordable housing, which “should” concern Florida as well:
Barcelona Bans Airbnbs Amid Crackdowns in Other European …
Business Insider
Barcelona is the latest global city to effectively ban short-term rentals, including Airbnb. City officials feel restricting tourist rentals helps keep housing affordable for local residents. Lisbon, Florence, and Amsterdam have levied Airbnb bans that experts said could be working. Aug 11, 2024