Croatia Signals Rental Limits, Maui Rejects Rezoning Lifeline, and Evanston Shifts to Discretion-Based Oversight
Summary
Croatia eyes rental limits, potentially impacting host revenue in tourist hotspots like Dubrovnik. Maui rejects a rezoning lifeline, solidifying Bill 9's phase-out of apartment-zoned rentals, while Evanston adjusts its STR ordinance, switching to a discretionary impact review. Hosts should map their exposure and understand changing regulations.
Key Insights
- •Croatia is considering rental-day caps and incentives to return units to the long-term market due to housing affordability concerns, with tourism contributing nearly 20% of Croatia’s GDP. The country welcomed 21.8 million visitors in 2025.
- •Maui’s Bill 9 mandates the total shutdown of apartment-zoned TVRs by January 1, 2029 (West Maui) and January 1, 2031 (elsewhere), impacting ~7,000 units. The Planning Commission rejected the H-3 and H-4 rezoning proposals that would have allowed those units to continue operating.
- •Evanston's ordinance now uses broader language requiring that new rentals not create a “negative cumulative effect” on neighborhoods, replacing a 600-foot distance rule.
Action Items
- ✓For PMs in tourism-heavy GDP markets like Croatia, consider this a leading indicator: when growth stabilizes and affordability dominates headlines, regulation follows. Map your exposure to potential future regulations, particularly in high-tourism markets.Effort: lowImpact: high
- ✓In Maui, separate apartment-zoned inventory from hotel/resort inventory to assess exposure to Bill 9.Effort: lowImpact: medium
- ✓Communicate early with owners about refinancing, valuation, and exit timing of apartment-zoned TVRs in Maui.Effort: mediumImpact: high
Common Mistakes
- ⚠In Evanston, hosts must now navigate a discretionary “cumulative impact” standard instead of a formulaic rule. Failure to understand and comply with this new standard could lead to violations.
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