picture byKC Alfred/The San Diego Union-Tribune
San Diego is one of America’s most popular tourist destinations. It’s still a hot spot for short-term vacation rentals, like Airbnb.
But this corporate structure was not everyone’s favourite. Many citizens have never been shy about expressing their opinion on the short-term rental business. They believed this had contributed to the housing crisis and caused adverse effects on the community.
Consequently, a new order, approved in March 2022 by the California Coastal Commission, sought to cap 1% of the total number of rentals in San Diego.
The city was expected to select at least 5,416 applications, but received only 3,110 in total by the November deadline. Thus, the authorities extend the application period until they reach their ceiling.
Keep reading to learn more about the new ordinances and their changes for short-term rentals in San Diego and what options remain for these landlords.
The big change for short-term rentals
picture byApartments in the City of Gold
By May 1, 2023, all short-term rental property owners will need a license to operate legally, and the city plans to set up an enforcement arm to work directly with Airbnb. Airbnb has agreed to comply with sharing this data to help regulate homes on its site.
Many citizens have been waiting for action for a long time. Mainly because of the bad consequences of short term rentals. However, this change is not only for the community, but also greatly impacts the real estate market. As this may influence the number of homes for sale and rent in San Diego.
As a result of the new regulations, owners are left with some of the options below:
If you are one of the owners who wish to continue their rental business, you can choose this option. There are still around 2,000 apps available. Remember, landlords can only operate one short-term rental under these new regulations.
If you are no longer interested in the short term rental business, this is a great opportunity to put your house for sale in san diego.
- Turn it into a long-term rental
If you haven’t been ready to sell your property for a long time, choosing to list it as a long-term rental is another option. It allows owners to make do with a stable income while accumulating equity.
San Diego Housing Market Forecast
picture byAdriana Heldiz
The ordinance is expected to change the real estate housing market as it evolves. Although the process may take some time, there is a strong chance of growth in the number of sellers and renters in San Diego County for 2023.
The change may be good news for buyers, as the new order will help ward off investors, who are only buying for short-term rentals. This will ultimately facilitate competition in the housing market.
It might also be a good time to buy a house in San Diego. If you want to get the latest updates on the rapidly changing real estate market in San Diego, contact the Best Life Home team!
And let us know your thoughts. What do you think of the new short-term rental ordinance?
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