New Rules for Airbnb May Stimulate More Listings in SoCal
Have you noticed more for sale signs lately in areas that seem to attract a lot of out-of-towners? That may be due to some legal changes to Airbnb properties, and could stimulate the real estate market with more listings.
Many Southern California cities are cracking down on the percentage of short term rental properties that are allowed, such as Palm Springs which allows no more than 20%. While this can obviously be seen as unfair, especially for those who already own and rent out these properties as short term rentals, it is happening more and more (I am sure there will be lawsuits).
The other long-term affect of these new rules is that it will curb buyers purchasing properties for short-term rental purposes – a type of investment property. Many will not be able to afford these homes if they can not rent them out for short terms, as reliance on the money they make enables them to keep the properties. This could drive real estate prices DOWN.
If you are in the market to purchase one of these properties be sure to check with the city first. But also consider that down the road the city could decide to change the rules. So for now it may be best to wait and see what happens, as it is inevitable that owners of such properties will file lawsuits against cities.
