REPORT: Los Angeles’ Airbnb ordinance could return approximately 11,000 homes back into city’s housing stock in the near term
Click here to download copy of report on Los Angeles short-term rentals and analysis of proposed STR ordinance
LOS ANGELES, CA – AirbnbWATCH, an affordable housing advocate and consumer watchdog group, released a report today with concerning statistics and trends regarding short-term vacation rentals in Los Angeles and provided a positive analysis of the recent proposed short-term rental ordinance.
One of those troubling statistics: the number of short-term rentals in Los Angeles has been growing more rapidly than the general housing supply. In fact, the number of short-term rental units in Los Angeles jumped by approximately 9.7 percent or 200 listings per month from mid-2016 to 2018.
Unlike other U.S. cities, which typically see investors controlling 20 percent of short-term listings, Los Angeles is seeing more than 45 percent of its short-term rentals being controlled by investors citywide and more than 50 percent in Venice, Westwood, West Los Angeles, Hollywood, and other downtown/central neighborhoods. That’s twice the average of other major cities.
“Los Angeles has an affordable housing crisis on its hands, which is exacerbated by the proliferation of professional short-term rentals. The city council must act now to stop the out-of-control downward spiral in the city’s permanent housing stock,” stated Lauren Windsor, spokesperson for AirbnbWATCH. “The lack of regulation has made short-term rental ownership a lucrative business for investors, at the expense of everyday Angelenos struggling to keep a roof over their heads. Los Angeles should follow the lead of other cities and eliminate professional short-term investor rentals.”
While the report raises concerning trends regarding the negative impacts of short-term rentals on Los Angeles’s permanent residential housing, the analysis shows that the proposed ordinance passed by city council back in May that is currently moving through the city planning commission would have a positive impact in protecting it.
The report illustrates that under the current growth trend, approximately 27,957 of current short-term vacation rentals in Los Angeles would rise to more than 33,000 rentals by July 2020. This would remove another 4,800 or more residential homes from the city’s housing stock.
However, if the Los Angeles ordinance is enacted, the number of short-term vacation rentals would decline to under 20,000 rentals. The gap between Los Angeles’ number of short-term vacation rental listings under the “as-is” status quo versus the expected reduction effect of the proposed short-term ordinance could be 11,000 or more within the next two years.
“Bottom line, the proposed short-term rental ordinance as-is could increase Los Angeles’ permanent housing stock by more than 11,000 homes over the next two years by eliminating professional short-term rental investing,” stated Windsor. “This will not only return thousands of homes to the city’s long-term housing supply, but protect thousands more from being bought up by investors. The Los Angeles City Council should enact the ordinance without delay.”
AirbnbWATCH is a project of American Family Voices, bringing together a coalition of organizations and concerned citizens dedicated to a common goal: protecting communities and travelers by exposing commercial hosts who use sites like Airbnb to run illegal hotels in residential properties under the radar and by making sure all hotel businesses play by the same rules.
FOR IMMEDIATE RELEASE
Tuesday, September 11, 2018
Contact: Lauren Windsor