For the 13th year, the local real estate firm is rallying the East End around…
Read More →
Southold Town Proposes Cap on Airbnb, Short-Term Rentals Across North Fork
A proposed law would slash vacation rentals by roughly 80%, limiting permits to 1% of homes in each hamlet as officials tackle housing costs and neighborhood complaints.
Southold Town is looking to put the brakes on the booming short-term rental market, proposing restrictions on Airbnb and other vacation rentals that could dramatically change how visitors book stays across the North Fork.
Under the proposed legislation, short-term rentals would be capped at 1% of single-family homes in each hamlet, with just 119 permits available through a random lottery. That’s a potential reduction of more than 80% from the approximately 640 active vacation rentals identified by town officials in October.
The plan aims to strike a balance between the North Fork’s tourism economy, neighborhood quality of life and an increasingly strained housing market.
Southold town beach at sunset
Southold has prohibited rentals of fewer than 14 nights since 2015, but officials acknowledge that enforcing the restriction has been difficult. The proposed law would redefine short-term rentals as stays of fewer than 30 consecutive days and allow a limited number of them under a new permit system.
Complaints about noise, parking, trash and a revolving door of vacationers have fueled calls for tighter oversight.
At the same time, the growth of vacation rentals has raised concerns about the availability of housing for year-round residents and workers.
The North Fork’s median home price reached a record $1.25 million in the third quarter of 2026, according to Newsday, while Southold’s median household income stands at $116,667, according to U.S. Census data.
Councilwoman Alexa Suess, who owns a jewelry studio in Greenport, supports the proposed 1% cap, recognizing the need to preserve housing for the workers who keep the North Fork’s tourism economy running.
Amanda Giuliano, a Southold business owner and co-chair of the town’s Economic Development Committee, has also expressed support for balancing tourism with the needs of year-round residents.
The challenge for Southold is clear: The North Fork needs visitors to sustain its restaurants, shops and hospitality businesses, but those businesses also need employees who can afford to live nearby.
Southold Town Hall
How the Proposed Short-Term Rental Rules Would Work
Under the draft legislation, property owners seeking a short-term rental permit would have to meet several requirements:
Permit lottery: A maximum of 119 permits would be awarded through a random drawing, with rentals limited to 1% of single-family homes in each hamlet.
Existing rental permit: Properties must have a valid two-year general rental permit, which currently costs $300 and requires fire and safety inspections.
Insurance: Owners must carry at least $1 million in liability coverage, naming Southold Town as an additional insured.
Property requirements: Rentals must comply with parking and waste removal plans. Properties served by cesspools would not qualify, nor would accessory dwelling units.
Ownership limits: Only one short-term rental permit would be allowed per owner or LLC.
Complaint response: An owner or designated representative must be available around the clock during rental periods and able to respond in person within 60 minutes.
Permit duration: Short-term rental permits would be valid for two years, with no automatic renewal. The additional permit fee has not yet been established.
The proposal also calls for substantial penalties for violations, with fines ranging from $3,000 to $10,000 for a first conviction and $5,000 to $20,000 for a subsequent conviction within five years.
Fishers Island would be exempt from the proposed restrictions. The island, which is part of Southold Town but accessible by ferry from New London, Connecticut, has no hotels, and officials say enforcement there would be impractical.
Greenport Village, which adopted its own short-term rental regulations in 2025, is also outside the scope of the town’s proposed law.
When Would the New Rules Take Effect?
The proposal is not yet law. The Southold Town Board must hold a public hearing and approve the legislation before the restrictions can take effect.
Under the proposed timetable, applications would be accepted in summer 2027, with a lottery planned for the fall. The new rental system is expected to begin in January 2028.
Southold’s proposed 2027 budget includes a new full-time code enforcement director to help oversee the regulations.
For homeowners who rely on vacation rental income, the changes could be substantial. For residents concerned about housing affordability and neighborhood disruptions, the proposal represents an effort to rein in an industry that has become a major part of the North Fork’s seasonal economy.
Angela LaGreca, Editor-in-chief and co-Founder/Publisher of Spark Hamptons, is a four-time Emmy Award-winning journalist, producer, writer and comedian/host. Her TV credits include NBC’s “Today,” ABC’s “The View,” and, most recently, the primetime cable news program “Cuomo” on NewsNation. On the East End, she was the Creative Director at LTV, VP Features/Events/Photo Editor at Dan’s Papers, and has performed at Guild Hall, Bay Street Theater and the WHBPAC. Her publishing career began at Modern Photography, where she was managing editor. LaGreca lives in Manhattan and East Hampton and can be reached at angelatvmedia@gmail.com and angela@sparkhamptons.com
.