12/05/2026
🚨😵💫 A commissioner on the Homer Economic Development Advisory Commission recently proposed eliminating 1/3 of Homer's STR by taxing and restricting licenses.
What would happen if Homer eliminates 1/3 of its short-term rentals?
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Using the KBR Housing Report’s count of 414 STR listings in Homer, eliminating 1/3 would remove about:
414 × 1/3 = 138 STRs
Assume each unit sleeps 4 visitors:
138 × 4 = 552 visitor-days lost per day
Over a 100-day summer season:
552 × 100 = 55,200 visitor-days lost
ATIA’s Alaska Visitor Profile shows average visitor spending of about $190 per person/day for all visitors and $216 per person/day for independent travelers, which is the better Airbnb-style comparison.
So the lost visitor spending would be:
55,200 × $190 = $10,488,000
55,200 × $216 = $11,923,200
That is roughly:
$10.5 million to $11.9 million in local business activity at risk over 100 days.
At Homer’s combined 7.85% sales tax, potential lost tax revenue would be:
$10,488,000 × 7.85% = $823,308
$11,923,200 × 7.85% = $935,971
Potential city/borough sales tax loss:
About $823,000–$936,000 over one season.
What about jobs?
ATIA reports that Alaska tourism generated approximately $3.9 billion in direct visitor spending and supported about 48,000 jobs statewide.
That works out to approximately:
$3,900,000,000 ÷ 48,000 = about $81,250 in visitor spending per tourism-supported job
Applying that ratio to Homer:
$10.5M ÷ $81,250 = ~129 jobs
$11.9M ÷ $81,250 = ~147 jobs
Estimated employment impact:
Roughly 130–150 tourism-supported jobs tied to that level of visitor spending.
And what is the projected housing benefit?
The KBR report modeled a much more aggressive scenario: essentially eliminating STRs entirely, with about 94 units returning to the market. Even then, the estimated effect was only:
~2.5% lower rent
About $34/month on a $1,350 rental
If only 1/3 of STRs disappear, the likely effect is much smaller.
Scaling the KBR estimate proportionally:
2.5% ÷ 3 = 0.83%
On a $1,350 rent:
$1,350 × 0.83% = about $11/month
Estimated rent reduction:
About $11/month, even under optimistic assumptions.
So the tradeoff being proposed is potentially:
$10–13 million less local business and sales tax revenue • Nearly $1 million less tax revenue • And the loss of nearly 300 rentals and tourism supported jobs in the community
…in exchange for roughly:
$11/month lower rents
That is an extraordinarily expensive economic tradeoff for a very small projected housing impact
The EDC commissioner's casual and intentional desire to put STR owners out of business with no mention of the ramifications of doing so is concerning. In a town heavily reliant on tourism this would have an extraordinary impact on our local economy in many different ways. 😵💫🚨
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The city is accepting public comments until May 15th.
Fill Out • Save PDF • Email To The City:https://homert21codeupdate.com/wp-content/uploads/2026/03/03-31-26_HomerTitle21Revision_CommentForm.pdf
Email completed form to Shelly at the City: [email protected]
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Data provided by a new report put out by:
📩 Kachemak Board of Realtors:
https://drive.google.com/file/d/1tfeyyGLHE9OjX07SZ1-aj0ckaHd6hA1h/view?usp=drivesdk
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