The Isle of Palms Chamber of Commerce was chartered in 2022 as a connection point for the Isle of Palms business community. Our vision is to foster an environment where all of our local communities — visitors, residents and business owners — can thrive. Above all, we’re here to support and uplift our neighbors, the true heart and soul of the Isle of Palms. We serve the citizens, all residents and visitors.
The IOP Chamber does not take a stance in either a “yes” or “no” for the short-term rental cap vote in November. Based on our extensive research, community feedback and facts surrounding this topic, we do feel obligated to share some of our findings:
- Folly Beach voted on Feb. 7, 2023, to cap short-term rental licenses. Since this time, the Multiple Listing Service shows that the average sale price on Folly has fallen nearly 30% within six months. To put this in perspective, the average sale price on IOP for June 2023 was $2.7 million. A “yes” vote to short-term caps would put this average property in jeopardy of being valued at $1.89 million before May 2024. Sullivan’s Island continues to tackle livability issues like litter, parking and noise. Plus, they have no recreation department and rely heavily on Isle of Palms for police and fire department assists. SI had a total of 915 housing units and only 8%, or 80 units, were licensed. Folly, on the other hand, has 2,890 housing units with 41%, or 1,180 STR licenses. Today, Isle of Palms has 3,106 homes with 866 licenses (28%), and 1,334 multi-family, commercial and condominium units with 920 licenses (69%).
- In the latest from the Charleston Trident Association of Realtors for August 2023, the Folly Beach property value numbers are: Average sale price: -30.78%; Average sale price YTD: -30.94%; Median Sale Price: -40.50% and Median Sale Price YTD -30.26%.
- Under the proposed STR referendum, a “yes” vote would make it difficult for a family to pass their home from one generation to another and for those family members to be able to use it as a vacation home with rental income.
- STR caps could eventually lead to increased taxes for all. Today, the City of Isle of Palms budget is over $14 million a year, of which nearly $10 million is a direct result of tourism. These funds are allocated to police, fire, public works, recreation and beach management.
- The current “referendum” and caps cast a net over ALL properties on Isle of Palms by not allowing for the commercial properties, condominiums and multi-family units to be excluded from caps. Does capping these properties enhance the neighborhoods we all live in?
SIDEBAR: The Isle of Palms Chamber supports regulated growth, and protecting our residential areas through compliance, enforcement and zoning. In short, the decision will be made by the full-time island residents and not our business community or part-time residents. Our hope is that everyone will stay informed and consider the impact on your family and the future of Isle of Palms. We love IOP!
By Rod Turnage
Vice president, IOP Chamber of Commerce
I am 100% against the STR cap as I believe that IOP property values will go down significantly. IOP has many condos condo/hotels like Folly Beach which saw a 25% decrease in property values. I feel like this vote in November in unfair as all of us who pay taxes and do not live in IOP year round will not have a say. Unfortunately, I think the STR cap will pass in November. I think if this passes, IOP should do something similar to Hilton Head and only cap STR’s in certain areas. I think that the main drag Ocean Blvd, Palm Blvd, Palmetto Blvd etc should remain uncapped. Would this make everyone happy?
Thank you for sharing this. I believe it is important to share the conservative economic impact and tax burden should this be voted in. Those non-full time renters pay nearly two and a half more in taxes that go to the city budget and county so not only will full time residents taxes go up to make up the short fall, but the entire Charleston County residences will be penalized. Taking down the present 1,800 to 1,600 equals approximately 8,400 weeks (200 rentals times an average of 42 rental weeks per rental). That is 8,400 families spending money on the island and surrounding. 8,400 weeks of lost taxes to IOP and 8,400 IOP permit fees. If a family of four spends $3,800 on their rental and per tourism statistics, $3,640 in spending tourism dollars, collectively we have lost $32 million in taxable income and over $30 million in taxable spending. This effects all of Charleston County residents. Older folks trying to stay in their Mount Pleasant or James Island homes will be taxed out of affordability. This will also create a hotel corridor in Mount Pleasant for those that can not afford, what will be higher prices for their families to enjoy a beach island rental vacation.
We can all look at Folly Beach and its loss in one year of 30% market values. They will dip in value further. Those voting “Yes” as primary owners (I won’t even go into how unconstitutional it is to have taxation without representation for the 2/3rd’s that are not owner occupied and unable to vote) are not seeing the big picture in my humble, yet experienced opinion.
1-Your taxes will go up as will the rest of Charleston County to have the same amenities, safety in police and fire, and quality of life.
2-You may eliminate vehicle traffic to those 200 plus voided short term rentals, keeping in mind they park in the driveway than typically walk to the beach and such, but add daily Uber and day time drivers, as well as hotel shuttles in a few years stopping (holding up traffic).
3-When you want a home equity for a students college, travel, a medical need, your home’s value will be 30% plus less and we all know equity is what you mortgage against.
4-You are telling your neighbors who may not even rent out their second home, that they do not have a say.
5-You need to look at Wild Dunes charters to realize whether or not they can annex themselves from this vote to maintain the economy of their golf courses and amenities. If they can do that and most of the short term rentals are available in Wild Dunes, then the vehicle traffic will increase from the Connectors to the very end of the island.
6- You will close down some of your favorite Island commercial businesses who rely on those eliminated 8,400 families money to survive.
There are enforced noise ordinances and parking rules. The gentrification of demand for primary residence on the island is already happening on its own. I know this for a fact, being a statistics orientated person.
This will have major negative ramifications in my opinion.