In a neighborhood along Asheville’s French Broad River and abutting a residential street that includes young families, Upstream Way stands out. It’s not just because most of the homeowners live out of town but also because, neighbors say, it turns into a fraternity house-like party scene on some weekends.

Short term vacation rentals — and their impact on affordable housing and the tourism industry — are vexing both local and state leaders.

New short-term rentals in Sylva will only be allowed as an accessory use to an existing dwelling, not the only residence on a lot, after the board unanimously voted to approve a revised ordinance on the issue last week. The move is part of an effort to address affordable housing, a problem plaguing many communities in the region.

The Town of Sylva updated its zoning ordinance earlier this year but left the short-term rental ordinance as it was written with the plan to hammer it out at a later date. 

Short term rentals have existed in resort towns for decades, but as Airbnb and similar services have made them more popular around the country, Highlands has moved to ban most new STRs, leaving the community divided on what’s become a critical issue. 

A group of homeowners calling themselves the “Save Highlands Committee” has filed a legal complaint against the Town of Highlands for its decision to enforce a ban of short-term rentals within the R-1 residential area. 

Discussions going on right now in the town of Highlands are the same discussions happening across the nation as the short-term rental industry continues to grow, leaving little room for the local workforce and changing the housing landscape of the community.