'We Don't See Short-Term Rental Restrictions Here Yet,' Says Colorado Broker as Western Slope Emerges as Rare Airbnb-Friendly Market

Written by:

Steve Marcinuk

Date:

14 Jun 2025

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While many Colorado mountain towns crack down on short-term rentals, Western Colorado’s market remains uniquely welcoming to Airbnb investors, according to one local real estate leader.

“So far, we’re not seeing those bumps, as we know in many of the areas of Colorado, it’s becoming restricted,” says Johnny Pfeiffer, Broker at Spirit Bear Realty, describing the region’s approach to short-term rentals. “Montrose specifically, but throughout our Valley, has incredible Airbnb properties [with] a large variety of price points, and the owners are doing very well.”

The Market Dynamics

This regulatory environment stands in sharp contrast to other Colorado mountain communities that have implemented increasingly strict limitations on short-term rentals. Pfeiffer says the difference stems from the region’s distinct market characteristics.

“Montrose is primarily a spring, summer, fall market. It’s a little quieter in the winter,” Pfeiffer explains. “Telluride is very active in the ski season, and then very active in the summer. It’s quieter in the shoulder seasons.”

This natural seasonality, Pfeiffer suggests, helps create a more sustainable balance between short-term rentals and permanent housing needs.

The Investment Opportunity

For investors, Pfeiffer points to specific opportunities in the market: “If they do look at our historical cottages, for example, in the heart of downtown Montrose, or in Ridgeway, or in delta or in Cedaredge… these prices are a fraction of what you find in most Colorado mountain towns.”

The combination of relatively affordable entry prices and favorable short-term rental regulations creates what Pfeiffer describes as a unique opportunity for investors.

Growing Amenity Base

The investment case is strengthened by significant amenity development in the region. “Downtown Montrose has been revitalized,” Pfeiffer says. “Has a beautiful new The Rathbone Hotel, a luxury boutique property… Brand new Marriott property just opened up here. There’s new luxury developments up to 2 million [in] our townhome listings right on the river.”

The Solution: Strategic Market Entry

Through Spirit Bear Realty’s recent expansion into downtown Montrose, Pfeiffer aims to help investors identify and capitalize on these opportunities while they remain available.

“We still have a lot of opportunities here that people can still get in,” Pfeiffer says, though he cautions that the window may not remain open indefinitely. “There’s a big discovery happening here, and we’re very excited about it.”