There’s no denying that California is suffering from a lack of long-term rental properties now but is banning short term rentals the answer? With opposition to short term rental properties growing, more cities, including Carmel, CA are stepping up to ban these rentals.

Preserving Housing Supply

The city of Carmel isn’t alone with banning short term rentals, this move is only the beginning of these types of rental properties being banned in California, especially in the Monterey County area where lack of long-term housing supply has been responsible for the increase in rents over the last 10 years.

Carmel is set to ban short term rentals in their commercial district on May 7th. There is hope that banning these types of rentals will preserve the city’s “residential character” while continuing to make long term rentals available to everyone.

The commercial district in Carmel applies to both sides of Ocean Avenue, the city hopes that banning short term “transient rentals” will bring more long-term rentals to the market, especially for teachers, firefighters and City Government employees who have felt the adverse effects of rent increases in recent years and found it difficult to live and work in the city.  

Still Needs to Be Approved by The California Coastal Commission

Even though the City of Carmel, CA is eager to ban short term rentals, the reality is that if approved, the ordinance also has to be approved by the California Coastal Commission because the commercial district in Carmel falls within the boundaries of the state “Coastal Zone” and any new ordinances or legislation that affects the coast has to be approved by the Coastal Commission.

Supporters of short-term rentals naturally oppose the City of Carmel’s desire to ban short term rentals because many investors have purchased properties in the area in recent years with the purpose of turning those properties into short term rentals.

Opponents of short term rentals like Marc Weiner, Carmel’s community planning and building director support the city’s move especially since recent statistics show that up to 1.8 million new housing units will need to be constructed in California by 2025 for the state to keep up with the demand for housing.

To stay on top of long term vs. short term rentals in California, follow our blog and we will update you with more information about what’s happening in Carmel and across the Monterey County area as soon as updates are available.

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