On March 25, 2026, RC3 submitted a letter addressed to Chelan City Council providing extensive justification for an immediate cap on the total number of short-term rentals (STRs) allowed in the city. Our letter referenced literature studies demonstrating that a proliferation of STRs, as has been seen in Chelan, leads to higher housing prices and reduced availability of residential housing. We also provided data on median house prices and construction costs suggesting that Chelan housing prices have indeed increased more than those in surrounding areas over the past decade or more due to the proliferation of STRs.
The number of STRs in Chelan has grown by nearly 200 over the past dozen years and now totals more than 410. The Lookout development alone includes over 200 houses built since 2014 that are zoned for tourist accommodation. Nearly all of these houses have owners living outside the Chelan area and about 70 percent are registered STRs, with most of the remainder being used as some kind of seasonal housing by the owners and their family and friends. Virtually none of the houses in the Lookout are used as long-term residences.
Plans and proposals for nearly 800 additional STRs in Chelan over the next 20 years have been made recently. This includes one development of 359 houses zoned for tourist accommodation near the Chelan municipal golf course and another specifically for 400 STRs on Chelan Butte. The data compiled by RC3 suggests that, without an STR cap, these developments will only serve to increase the cost of housing and negatively impact local infrastructure, while doing nothing to increase the availability of desperately-needed residential housing. With an STR cap, the Chelan community would be better served by slower growth that is more focused on residential housing.
STR caps have already been implemented in unincorporated Chelan County and many other cities throughout Washington. Caps have been shown to be effective and have withstood legal challenges. We believe that the local community supports significantly slowing the growth of STRs in Chelan. Without an STR cap, not only will housing costs continue to rise excessively, but it would drastically change the character and livability of Chelan that is so cherished by current residents.