Southold May Restrict Airbnbs Over Complaints About Influencers

A high-end destination on Long Island’s North Fork is considering a sweeping crackdown on Airbnb and other short-term rentals, with a proposed cap that would limit them to just 1% of homes in the Town of Southold.

The proposal would reduce the number of permitted short-term rentals to fewer than 120 across Southold’s nine hamlets—an estimated 80% decline from today’s market.

“We are struggling to regulate [the short-term rental market],” Southold Town Attorney Ben Johnson told Newsday.

Under the proposed rules, the limited permits would be distributed through a random lottery. The plan could dramatically reshape a short-term rental industry that generates about $27.5 million in annual host revenue while excluding most of the town’s approximately 640 current rental owners.

Short-term rentals have expanded rapidly across Long Island’s affluent East End, bringing a surge of complaints from residents about noisy parties, overflowing garbage and insufficient parking.

Officials also say the growth of seasonal vacation homes has put additional pressure on the supply of year-round housing, contributing to the region’s broader affordability crisis.

“We understand this is a seasonal economy, [but] most of the complaints we get are from people that it’s just a revolving door next to their house,” Johnson said.

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Southold has technically prohibited rentals lasting fewer than 14 days since 2015. Town officials, however, acknowledge that the restriction has been nearly impossible to enforce, prompting the latest proposal.

The plan would limit each homeowner to one permit, either personally or through an LLC. Applicants would also need a valid two-year general rental permit, which requires fire and safety inspections.

Additional requirements would include $1 million in general liability insurance, as well as documented plans for parking and trash removal. Properties that rely on cesspools would not qualify.

A town report issued last year estimated that Southold had about 640 short-term rentals, with an average nightly rate of $902.

At the same time, the median home price on the North Fork recently reached a record $1.25 million—more than 10 times Southold’s median household income of approximately $116,600, according to Census data.

Southold’s proposed restrictions follow a move by neighboring Southampton, on the adjacent South Fork, which effectively prohibited weekend rentals in August 2025.

That policy change came after Southampton residents voiced complaints similar to those in Southold, saying weekend visitors’ late-night “ragers” were disrupting sleep and making the affluent beach community difficult to live in.