Real Estate: September 2022 Coronado Market Update

New San Diego Short-Term Rental Ordinance

We’re so used to renting vacation properties through Airbnb or a VRBO when we travel. It really has become a very comfortable way to spend a vacation, especially when traveling with children.

San Diego attracts many tourists looking for a year-round mild climate and beautiful beaches. Many of our tourists like to hold family reunions, birthday parties, bachelor parties at these short-term vacation rentals, which has caused disruption to local residents, many of whom have filed noise complaints with the city several times. The San Diego City Council seems to have heard these complaints as it recently approved a short-term rental ordinance that will limit the number of short-term rental permits issued throughout the city of San Diego. As of January 2022, there are an estimated 12,300 short-term rentals in the city of San Diego. The new ordinance will limit the number of short-term rentals to 1% of the city’s total 540,000 homes, meaning only 6,500 short-term licenses will be issued citywide. This new regulation will result in a 48% reduction in properties available for rental for less than 30 consecutive days.

Mission Beach, however, got an exception. They will be entitled to a larger cap of 30% of their homes or 1,080 licenses.

Licenses will be issued by lottery and the application period just opened on October 3. The ordinance will take effect on May 1, 2023. Residents can apply on the City of San Diego website.

What does this mean for the Coronado Rental market?

This new ordinance will have no impact on Coronado’s rental market. The city of Coronado has had an ordinance for decades that prohibits short-term rentals of less than 26 consecutive nights. A settlement that our property management team at Coronado Shores Company successfully transacted before Airbnb/VRBO was established.

What about the local real estate market?

The new order will reduce the number of properties used as short-term rentals so that we can anticipate the increase in short-term rental prices, not only due to the reduction in supply, but also due to the increase license fees that owners now have to incur. Application fees can be up to $1,000 per rental unit for the whole house, but a license is not guaranteed. The city will award licenses based on a lottery system.

We should also anticipate the entry into the resale market of some unlicensed short-term rentals. The City of San Diego will have approximately 5,800 properties that have not obtained short term rental licenses and the question is whether landlords will convert these properties to mid/long term rentals or will they sell them.

For more information, please contact me at 619-453-4513 or visit my website at

Greater San Diego Association of Realtors Report

The The Coronado Real Estate Market Update is sponsored by Coronado Shores Co. To view Coronado homes for sale, rent, or for property management services, please visit Coronado Shores Co.

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