There are a few investor STR hot spots on the Oregon Coast that are likely to experience changes and challenges to STR permitting and licensing in the coming months and years. For anyone looking to acquire a coastal vacation rental in the coming years, might want to consider accelerating their timelines if one of these areas is on their target list.
Rockaway Beach Oregon - A regular on some of the top STR lists in the PNW for price to production ratio - last year Rockaway Beach instituted a CAP on STRs that allows only licensed STRs to transfer to new owners. There is now discussion that this eligibility could be eliminated (which would effectively move the waitlist sooner) but eliminate a major market from immediate STR usages.
Florence Oregon - An area primed for general growth (due to close proximity to Eugene) has also been a hot area for STRs due to the lack of regulation. There has been discussion for sometime about rules and regulations and our best guess is that by next summer (or sooner) some type of rules will exist to operate a nightly vacation rental within city limits.
Yachats & Lincoln City - Fortunately or Unfortunately Lincoln County is one of the most highly regulated regions on the Oregon Coast for STR operations. In fact - they recently reduced the CAP for the Eastern region and so unless you have the ability to wait (on an extensive waitlist) or the property in question is commercially zoned - or in specific communities that allow STR usages, don't plan on a coastal cottage here anytime soon. One asterisk is the waitlist for Yachats is currently lower than it has been at years..a little bird at planning told me below ten persons..but investors can expect not launch this year or maybe next..
Bay City - Within city limits has a new rule that within 200ft in any direction an active STR cannot be operating..this eliminates a lot of prospects but eligible homes do still come to market.
Warrenton & Gearhart - Several prime luxury HOA communities that currently allow nightly vacation rentals have either drafted or are considering rules that restrict the density or saturation or outright usage of new rentals (existing would be 'grandfathered.')
Manzanita & Cannon Beach - As of now Manzanita has an extensive waitlist for the majority of city limits and licenses do not transfer in the primary part of town. Cannon Beach also has a tight restriction on STRs within city limits and typically even eligible properties are limited to one occupancy per 14 days. There are historically some unlimited licenses that are not subject to restrictions but I've not seen any transfer within the past five years.
In general the barrier to entry for STRs on the Oregon Coast will continue to broaden - however there are still investment opportunities in every coastal city or region.
