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Peering into the Peer Economy: <br />Short -Term Rental Regulation <br />By Dwight H. Merriam, FAICP <br />You will recall, or if you are a millennial (18 to 34 years old), you might have read <br />about the mantra that James Carville dreamed up for President Bill Clinton's 1992 <br />campaign: "It's the economy, stupid." <br />Today, for planners, thanks to the entirely new <br />perspective brought to us by the millennials, <br />our theme must be "It's the sharing economy, <br />stupid." It is called variously collaborative con- <br />sumption, the peer economy, and the sharing <br />economy. More than half of millennials have <br />used sharing services. It is permeating our daily <br />lives in many ways. <br />This new ethic about our relationship <br />to things, to transportation, to where we bed <br />down, and even to other people has taken us <br />away from owning and exclusively using, to not <br />owning, not possessing, and not using alone. <br />We see the sharing economy in three broad <br />spheres—transportation, goods and services, <br />and housing. While our focus here is on short- <br />term rentals, it helps to understand the larger <br />context for "home sharing." <br />RIDE -SHARING REVOLUTION <br />Transportation may be the most obvious and <br />most pervasive face of the sharing economy. <br />Millennials own fewer automobiles than other <br />age cohorts. Millennials purchased almost 3o <br />percent fewer cars from 2007 to 2011 (Plache <br />2013). Why? Because they use short-term car <br />rentals, public transportation, and ride -shar- <br />ing services. They are less likely to get driver's <br />licenses. One-third of 16 to 24 year olds don't <br />have a driver's license, the lowest percentage <br />in over 5o years (Tefft et al. 2013). At the same <br />time, so we don't get too carried away with <br />this trend, as the millennials age, they will buy <br />more cars. Forty-three percent said they are <br />likely to buy a car in the next five years (Kadlec <br />2015). <br />This four-bedroom colonial home in Wetherfield, Connecticut, rents for $385 per <br />night, with a four -night minimum stay. <br />Ride sharing as a generic term encompass- <br />es short-term rentals, making your car available <br />to others, sharing rides, and driving or riding in <br />taxi -like services brokered online through com- <br />panies like Uber. <br />Instead of owning a car, you can rent one <br />on a short-term basis from companies such <br />as Zipcar and Enterprise Rent-A-Car. Why own <br />a car when you can conveniently pick one up <br />curbside and use it to run errands for a few ' <br />hours? <br />Sharing a ride and splitting the cost is <br />made easier with services like Zimride (also by <br />Enterprise Rent-A-Car), which links drivers with <br />riders at universities and businesses. You boom- <br />ers will remember the ride -share bulletin boards <br />on campus. Same thing. <br />Got a car, not making much use of it, and <br />interested in making some money? You can <br />make it available to others on a short-term <br />basis through peer-to-peer car -sharing services <br />including Getaround, which presently operates <br />in Portland, Oregon; San Francisco; San Diego; <br />Austin, Texas; and Chicago. They will rent your <br />car for you while you are away. Cars are covered <br />with a $1 million policy, and they even clean <br />it for you. RelayRides connects neighbors to <br />let them rent cars by the hour or the day, and <br />if you're traveling more than 14 days, they will <br />take your car at the airport, rent it for you, and <br />pay you. You can even do it for boats with Boat - <br />bound. With the help ofSpinlister, you can con- <br />nect with others and renta bicycle, surfboard, <br />or snowboard. <br />Dwight Merriam, FAICP, founded Robinson & Cole's Land Use Group in 1978, where he represents land owners, developers, governments, and <br />individuals in land -use matters. He is past president of the American Institute of Certified Planners and received his masters of Regional Planning <br />from the University of North Carolina and his juris doctor from Yale. <br />ZONINGPRACTICE 10.15 <br />AMERICAN PLANNING ASSOCIATION 1 page 2 <br />