Real Estate News

‘Any moratorium is harmful’: Hilton Head realtors, residents clash on STR pause

These luxury homes recently built on Bradley Circle on Hilton Head Island have signage on them as luxury vacation rentals or short-term rentals. A number of residents are for a pause on short-term rentals to give the community time to focus on updating regulations.
These luxury homes recently built on Bradley Circle on Hilton Head Island have signage on them as luxury vacation rentals or short-term rentals. A number of residents are for a pause on short-term rentals to give the community time to focus on updating regulations. dmartin@islandpacket.com

If there’s one thing Hilton Head residents fear the most, it’s waking up in Myrtle Beach.

That fear looms in the background of all discussions on how to manage growth on Hilton Head in a way that protects the island’s unique character while still promoting economic development.

At a Tuesday town council meeting, over 50 residents flooding town council chambers to debate whether a moratorium on short-term rentals, timeshares, and subdivisions would be a good tool for controlling growth.

The idea spawned out of a town council workshop over two months prior. A “pause” on these developments, proponents argued, could give town leaders time to study their impacts on residents quality of life, neighborhood livability, traffic, and infrastructure use.

The suggestion comes at a time where town leadership is debating amendments to short-term rental safety regulations and development standards.

However, the word moratorium incited fears among Hilton Head real estate agents, who argue even discussing a moratorium has a chilling effect on investment and lower property values.

Longtime residents, especially those in neighborhoods flooded with short-term rentals, see those concerns as overblown, and argued that a temporary pause is necessary to get a handle on addressing specific issues.

A recap: How we got here

Controlling growth has been a key concern for islanders and leaders since the town of Hilton Head was incorporated in 1983. Residents who flocked to the island for its beauty and quality of life have long feared the impacts of overdevelopment.

The moratorium discussion comes at a time when town leaders are working on a massive overhaul to its land management ordinance, the primary policy for regulating development on Hilton Head. It addresses things like how big buildings are allowed to be, how much greenspace developers must leave, what kinds of trees can be cut down, and more.

In 2014, town leaders loosened development restrictions and overhauled its zoning map, leading to many developments that some residents say are making Hilton Head lose its unique charm and character that set it apart from places like Myrtle Beach.

The Bradley Circle beachfront area of Hilton Head Island as photographed on July 17, 2025, lists 18 public user inputted short term rentals on the Town of Hilton Head’s online dashboard but many of the non-listed luxury homes have placards with luxury rentals websites and phone numbers.
The Bradley Circle beachfront area of Hilton Head Island as photographed on July 17, 2025, lists 18 public user inputted short term rentals on the Town of Hilton Head’s online dashboard but many of the non-listed luxury homes have placards with luxury rentals websites and phone numbers. Drew Martin dmartin@islandpacket.com

Since 2023, town leaders have been working on another massive overhaul to the land management ordinance to address things like greenspace requirements, sidewalks, and clear-cutting.

While many amendments to the policy have been made, progress has been slower than some residents would like.

In a July workshop, Ward 2 council member Patsy Brison aired the idea of a moratorium on short-term rentals, timeshares, and subdivisions.

A brief “pause” to development, she said, could free up resources and give town leadership time to focus on updating rules for development and short-term rentals before more “damage” is done.

Read Next

“Travel around this island, and you’ll see a lot of areas where someone has come in with a bulldozer and cut a large swath of land, tearing down all the trees and building very small homes and not workforce housing,” Ward 2 council member Patsy Brison said at the July meeting. “Unless we take this pause, we’re going to keep suffering from these pressure points, and our community will keep suffering.”

This photo taken with a drone on May 10, 2023 shows a forested area comprised of residential properties enveloped by land clear cut for a new subdivision currently under development on Hilton Head Island.
This photo taken with a drone on May 10, 2023 shows a forested area comprised of residential properties enveloped by land clear cut for a new subdivision currently under development on Hilton Head Island. Drew Martin dmartin@islandpacket.com

The suggestion ruffled the feathers of realtors and stakeholders in the vacation rental industry, who worry any moratorium could have devastating consequences to the Hilton Head’s tourism economy. Longtime residents, who have long been voicing concerns about short-term rentals impacting the livability of their neighborhoods, stepped up in strong support of a moratorium.

Vocal Indigo Run resident Richard Bisi created an online petition on July 28 demanding an immediate moratorium on short-term rentals. The petition has garnered 826 signatures as of Thursday evening.

Hilton Head mayor: short-rerm rentals are ‘our future’

Before opening the floor for public comments and before hearing a staff report on a moratorium, Mayor Alan Perry made his stance on the issue clear.

“I am not for a moratorium on short term rentals,” Perry said sternly. “It is our future.”

While some residents believe problems related to short-term rentals are “widespread across the island,” Perry said he doesn’t “happen to believe that.”

“I think we’re taking a very dangerous look at what is going on without proper understanding and without proper regulations, and without proper enforcement,” he continued.

Gay Propst walks to a neighborhood meeting to discuss the three, three-story single family homes being constructed in the Holiday Homes neighborhood as photographed on July 29, 2025, on Hilton Head Island. Building permits note that each home is over 4,000 total square feet, each having an elevator. Some residents are concerned that their neighborhood, made up primarily of single-story ranch style homes, will lose its charm and sense of community if more short term rentals are built.
Gay Propst walks to a neighborhood meeting to discuss the three, three-story single family homes being constructed in the Holiday Homes neighborhood as photographed on July 29, 2025, on Hilton Head Island. Building permits note that each home is over 4,000 total square feet, each having an elevator. Some residents are concerned that their neighborhood, made up primarily of single-story ranch style homes, will lose its charm and sense of community if more short term rentals are built. Drew Martin dmartin@islandpacket.com

He stressed the importance of Hilton Head’s tourism, hospitality, and real estate industries to the island economy, and expressed concerns that a moratorium on short-term rentals could put the town in financial “jeopardy.”

Perry asked the council to raise their hands if they would support a moratorium. Only Brison, the council member who had initially suggested the idea, raised her hand.

In response, Brison called Perry’s question “premature.”

“It’s important for us to have a discussion,” Brison said. “Let us assess this before we have to raise our hand.”

Three-story vacation homes encircle a small cul-de-sac near John and Stephanie Brighton’s home on Shell Midden Lane. The Brightons knew homes were being built across the street from their one-story home, but they didn’t expect short-term-rentals that would sleep 18 to 20 people each.
Three-story vacation homes encircle a small cul-de-sac near John and Stephanie Brighton’s home on Shell Midden Lane. The Brightons knew homes were being built across the street from their one-story home, but they didn’t expect short-term-rentals that would sleep 18 to 20 people each. Li Khan The Island Packet

Hilton Head community divided over moratorium, short-term rentals

Members of the public spoke for nearly two hours about the potential moratorium. The majority of those who spoke in opposition to the moratorium were local real estate agents.

Campaign contribution records show that real estate agents were also the biggest contributors to Perry’s 2022 mayoral campaign.

Here’s a snippet of what people had to say:

  • “This is not a ban. It’s a pause to give our community time for a thorough, thoughtful review and to develop sensible guidelines, guidelines that promote responsible growth while preserving what makes Hilton Head so special.” — Richard Bisi, Indigo Run resident
  • “I think any moratorium is harmful ... We’re cutting off the story of Hilton Head by the number of people who got here by having a second home that they can offset their income” — Angie Hutchins, Dunes Real Estate
  • “There’s a lot of benefits to short-term rentals. The 6% [property tax] ... that pays for our schools. The transfer fees, that helps pay for the bike trails. Business license fees, the accommodations tax.” — Charles Sampson, Hilton Head resident and realtor
  • “There are native islanders and other folks who have property that might want to develop, and we don’t want to delay that because we don’t know how much time any of us have.” — Lavon Stevens, Chairman of Gullah-Geechee Land and Cultural Preservation Task Force
Read Next
  • “Word of a possible moratorium is already creating uncertainty in the market. Realtors have seen investors walking away just for the mere discussion of a possible moratorium ... The truth is that the problems with short-term rentals are limited and manageable. Out of 7,000 licensed units, there were only 147 enforcement complaints this year.” — Jocelyn Staigar, Government Affairs Director at Hilton Head Area Realtors
  • “I have been in a town [where] we did a moratorium for three months, and it was the smartest thing we ever did, because we were able to take a pause. We didn’t stop people from turning over their property. We didn’t prevent any rentals at all.” — Linda Harrington, Indigo Run resident
  • “We need something to save our neighborhoods ... I’ve watched neighbor after neighbor after neighbor leave. The street is full of short-term rentals, and I have no problem with short-term rentals. This isn’t about their noise, their coming and going, they’re fine. And I don’t think this discussion is about their bad behavior, because it’s usually just a few of them. It’s about the destruction of our neighborhoods and the community.” — Felice LaMarca, realtor and Sea Pines resident

The result: no decision

After listening to public comments and a report from staff, council member Brison expressed support for a 90-day pause on new short-term rental applications while allowing current permitholders to reapply.

Ward 4 council member Tamara Becker expressed support for a moratorium that would limit the number of short-term rentals.

“We have to establish a number, or else this is a continuing process of short-term rentals taking over every neighborhood possible,” Becker said.

Tamara Becker, left, Hilton Head Town Council Member of Ward 4, listens listens to residents of Holiday Homes talk on July 29, 2025, about the fears they have with new construction in their neighborhood that will likely become short term rentals. Becker has long supported tougher regulations on short-term rentals, arguing that it’s needed to protect the quality of life for residents.
Tamara Becker, left, Hilton Head Town Council Member of Ward 4, listens listens to residents of Holiday Homes talk on July 29, 2025, about the fears they have with new construction in their neighborhood that will likely become short term rentals. Becker has long supported tougher regulations on short-term rentals, arguing that it’s needed to protect the quality of life for residents. Drew Martin dmartin@islandpacket.com

Ward 5 council member Steve Alfred responded that a cap on short-term rentals was one topic the town is “not going to take up at the current time, but may consider in the future.”

Becker turned to Mayor Alan Perry, who was sitting to her right. “Do you think we’re at a good number now, Mayor?”

“I’m not prepared to answer that,” Perry responded.

Ward 1 council member Alex Brown, who posted a statement on Facebook Wednesday opposing a moratorium and tighter restrictions on short-term rentals, suggested the council not discuss a moratorium further in order to focus “time, energy, and payroll” on the changes to short-term rental regulations that town leaders are currently still deliberating.

No motions were made during discussion, except to extend the meeting by 30 minutes.

Brison expressed hope that the council would revisit a moratorium on timeshares and subdivisions at their next meeting.

“We’ve got threatened land out there, and if we don’t talk about it, next think you know the town council is going to be asked to buy more land and it’s going to be subdivided,” Brison said. “And while that’s a great idea, and we’ve been very good about that, we do not have unlimited resources to keep buying land, nor do we always have willing sellers.”

This story was originally published September 19, 2025 at 10:44 AM.

Follow More of Our Reporting on In the Spotlight

Li Khan
The Island Packet
Li Khan covers Hilton Head Island for the Island Packet. Previously, she was the Editor in Chief of The Peralta Citizen, a watchdog student-led news publication at Laney College in Oakland, California.
Get unlimited digital access
#ReadLocal

Try 1 month for $1

CLAIM OFFER