Smart City Policy Group will examine the economic and community impacts of STRs, with findings expected
from Staff Reports
Folly Beach City Council has selected Smart City Policy Group out of Austin to conduct an independent study of the island’s short-term rental (STR) regulations, moving forward with an effort to bring more data into the contentious debate that has split Folly residents nearly down the middle.
At its Tuesday, Oct. 13 meeting, Council considered four qualified proposals before unanimously selecting Smart City Policy Group, which emerged as the frontrunner. The firm received six of 10 first-place rankings, finishing ahead of BAE Urban Economics, RRC Associates, and a university-affiliated proposal.
The city previously allocated $50,000 for the independent study, which is intended to provide Council with a clearer understanding of the potential benefits and drawbacks of various regulatory options.
“Our goal from the beginning has been to take an objective, fact-based look at short-term rentals and their impact on Folly Beach,” said Mayor Chris Bizzell. “Smart City’s proposal offered a comprehensive approach that examines housing, property values, our local economy, community, and quality of life. We want the data to guide our decisions, not the other way around.”
The study will examine how existing and proposed STR regulations affect Folly Beach’s housing market, property values, local businesses, city finances, and overall quality of life. The findings could help shape the city’s approach to regulating vacation rentals in the years ahead.
The consultant will also compare Folly’s policies with those of similar coastal communities and evaluate the potential consequences of different regulatory approaches, including changes to the number of allowable STR licenses and possible exemptions or exceptions.
“One of the things I particularly liked about their approach is that it evaluates a wide range of potential scenarios rather than starting with a predetermined outcome,” Bizzell said. “We’re asking the consultants to identify the data needed, evaluate the tradeoffs, and provide Council with reliable information to make decisions that serve the long-term interests of our community.”
The selection comes amid continuing legal uncertainty surrounding Folly’s STR regulations. In August, Circuit Court Judge Thomas J. Rode ruled that the voter-approved cap of 800 STR licenses was unlawful. The city appealed the ruling and subsequently moved to establish the same 800-license limit through a City Council ordinance rather than a referendum.
According to Bizzell, Smart City’s proposed schedule calls for a final report by Feb. 12, 2027, followed by a presentation to City Council by Feb. 26; both dates depend on the study progressing as planned.
