Posted on 01/23/2024 8:48:13 AM PST by grundle
Two years ago, YouTube star Luan Palomera paid $1.5 million for a chic vacation home in Palm Springs.
Today, he’d be lucky to get $1 million for it.
As L.A. continues its crackdown on Airbnb, city officials can turn toward the desert for an example — perhaps a cautionary tale — of the potential side effects of curbing the short-term rental market.
In Palm Springs, a cap on short-term rentals in specific high-demand neighborhoods has all but frozen the market in those communities.
Activists argue Airbnbs remove affordable housing from the market. Residents complain that the influx of tourists leads to loud, late-night parties and generally takes away from a place's neighborly ambience. Disputes between hosts and renters lead to movie-level drama and months-long courtroom clashes.
As a result, some cities are limiting short-term rentals, and each one seemingly has a different strategy.
(Excerpt) Read more at msn.com ...
Portland ME is having the same problem.
“Homes that used to pull $1.2 million are struggling to get $800,000,” Sarlund said. “My neighborhood has dropped 30% to 40% in value.”
He’s currently representing a seller who paid $1.16 million for a house in the Gene Autry neighborhood with plans to put it on Airbnb, but they weren’t able to secure a permit before the ordinance kicked in.
The house hit the market less than a year later asking $1.4 million. Five price cuts and 10 months later, it’s still waiting for a buyer at $875,000. More price cuts are probably on the way.
“They’re set up to lose a lot of money,” Sarlund said.
Government is always ready to help make any situation worse.
It’s time to bring back the old style boarding home. Where the owners created ‘the rules’ and people respected each others rights to privacy.
Nightly rentals are being curtailed in virtually all resort towns. Most are going to a model of limiting nightlys to 25% of housing.
Since the owners aren’t residents, they don’t vote. The residents - who have been crowded out from home ownership by nightly rentals - are voting for this.
It’s controversial from a property ownership standpoint, but understandable.
Just more evidence that no one in America actually ever owns property. It’s always government property.
Hmm...seems like unequal protection of the laws. How are the 25% chosen?
Impossible!
Housing NEVER goes down.
I’m a strong advocate of private property rights, but I also believe government restrictions on this type of use are perfectly legitimate in any jurisdiction that has zoning codes. Those laws are there for a reason.
Most BnB homes are not insured correctly.
If they want to be hotels, there are rules and regulations that cover that. Tax rates too. What is going on is a result of people trying to exploit a loophole.
All fun and games until that loophole closes.
It’s not just crowding out the locals from home ownership. For the locals who already live there, having a short-term rental open in your neighborhood is a nightmare. LOTS of traffic, people coming and going at all hours, lots of partying, people who don’t respect the neighbors because they don’t live there, constant strangers in the neighborhood...it can be VERY unpleasant for the people who live there.
Good post. You’re seeing the same thing in these short-term rental arrangements that we saw with ride sharing. Once the property owner or driver has to pay the real cost of doing business, it’s suddenly not such a promising business venture anymore.
Residents complain that the influx of tourists leads to loud, late-night parties and generally takes away from a place’s neighborly ambience.
= = =
Fill up the empty houses with migrants.
That will solve that neighborly ambiance disturbance.
Lake Tahoe has same problem,
I used to live in a town that prohibited short-term rentals in any home located in a low-density residential zone — for exactly those reasons you described.
“Once the property owner or driver has to pay the real cost of doing business, it’s suddenly not such a promising business venture anymore.”
Bingo!
Now if we’d only stop giving every illegal who strolls into the country tens of thousands of dollars of “free” stuff, then the REAL cost to them of coming here would hit them. The flow of freeloaders would immediately drop to a trickle.
To give an example of how it’s being handled, here’s a rather famous case:
Prices for housing there have doubled or tripled in the last 5 years and nightly’s are a big reason.
I am not sure that “investor owned” fits the framework of all the measures moounted for many decades to help foster home ownership for families.
In one report recently it was said that in some markets large LLC companies have gained ownership of 50% plus of the local housing. That inflates housing prices by keeping houses off the market until the corporate investors get the ROI they want, and it means more than the usual number of households wind up renting instead of buying. Not at wall what people think of when they think owning a home is part of “the American dream”.
Housing prices here in North Idaho have also doubled or tripled in the last 5 years, but mainly from people fleeing failed states on the west coast.
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