Vacation rentals have long been a source of tension along the Oregon Coast, where long-term residents often struggle to find affordable housing as short-term rentals and second homes reduce supply.

Bandon has approved a 120-day moratorium on new vacation rental applications to study how those rentals affect local housing availability.

Mayor Mary Schamehorn said the city lacks so-called middle-market housing for workers such as doctors and teachers.

“Being on the hospital board, I remember when our CEO came to town, we had a really difficult time finding a house for him,” she said. ”That’s the housing market that we’re missing.”

The moratorium allows city staff to review vacation rental policies and evaluate their impact on housing.

Community Development Director Jeff Mitchum said they aren’t laissez-faire on regulating rentals.

“We have a pretty robust regulatory climate for (vacation rental dwellings),” Mitchum said. ”It’s not open-ended regulation, and it’s not a prohibition. It’s kind of a hybrid.”

In Bandon, vacation rentals closest to the coast must obtain a city permit. Only single-family, detached homes that are at least three years old are eligible, and no more than 30% of homes within a surrounding area may be used as vacation rentals.

Other communities, including Tillamook, Lincoln and Humboldt counties, have adopted strict caps on short-term rentals.

A 2023 housing needs study found Bandon will need to add more than 500 housing units over the next 20 years — a significant increase for a city with roughly 2,000 existing homes.

City staff will assess how current vacation rental policies align with those projected housing needs. Officials could extend the application moratorium for up to six months.

Roman Battaglia is a reporter with Jefferson Public Radio. This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.

It is part of OPB’s broader effort to ensure that everyone in our region has access to quality journalism that informs, entertains and enriches their lives. To learn more, visit our journalism partnerships page.

News Source : https://www.opb.org/article/2026/02/06/bandon-oregon-vacation-rental-oregon-coast-housing/