Palm Springs home values in 'free-fall' after city cracks down on Airbnb

According to the L.A. Times, a wave of crackdowns on short-term rental permits has sent home prices into "free-fall" in the California desert community. As homes sit on the market, unsold, one buyer who paid $1.5 Million for a home says he'd be lucky to get $1 Million. Call it "Air-b-n-bust," after years of complaints from residents, the city passed an ordinance in 2022 to restrict short-term rental permits to no more than 20% of properties in any of the city's 66 neighborhoods. Some enclaves, like the popular Racquet Club Estates, are way above that mark, with 40% of homes being classified as short-term rentals. For the many who bought a home in the city during the pandemic and hoped to it into an revenue opportunity, many are disappointed the permits are non-transferrable, even among family members. Live, local news from L.A.'s Very Own, KTLA 5

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[lih-fkby]

Air bnb has caused home prices to rise all over the world's more popular locations

[nmbrkid]

We needed this protection. It’s infuriating to watch all affordable properties go to people who already have 30 houses. 😏

[leetcodeking]

Love this. My city banned AirBNB. Homes went from costing 500K to near 200-300 now. They will soon hit 200K from this crash.

[sammyp]

Good! I have a small cleaning company and we decided to stop working with airbnbs. The “investors” are annoying and tried to treat us like property managers. I happily welcome the fall of airbnb! It always sucked

[Riceman-op]

Airbnb's completely destroy neighborhoods.

[Moondoggy]

This law would wipe out the real estate in San Diego, it desperately needs it though.

[geothon]

A business actively operating in a residential zone. Expect to deal with the regulations.

[gregcooks]

They should do this nationwide to let the people can get some relief

[dfirth]

Yes, every city needs to do this ASAP. There are two houses behind me on the next street that are Air BnB "Party Houses". They sit empty until someone rents to throw a party. They care less about what the neighbors think.

[robbieogle]

I remember going to Seattle once a month for a cheap airbnb for 40 dollars a night. The next year it was 100 a night. On Saturdays they were trying 140 a night. Then Seattle cracked down on multiple home ownership for airbnbs. It folded.

[genxx]

Short term rentals are a zoning violation. We have zoning in this country for a reason. The residential zone is supposed to be stable and quiet. Visitors belong at resorts, or at hotels in the business zone where their comings and goings and noisy partying don’t disturb people in their homes.

[kenc]

Good that the home values are correcting to more realistic values.

[Chef-vgpu]

Good for them they’re taking care of their community… in my opinion

[BobbyMcGee_]

A friend of the family owns a ton of properties in Palm Springs and ALL of the them are (or were lol) Airbnb. I just kept my mouth shut about their business but I am glad to see the city of Palm Springs step up to put an end to this practice.

[tcfoxdude]

As a Palm Springs resident, I don’t know where the “free fall” data is coming from. A lot of new buyers are also full timers (a huge demographic change due to the pandemic) and these new residents also don’t want renters.

Palm Springs proper is built out and supply is very low for single family homes. The modern midcentury homes are highly sought after.

People don’t want to buy million dollar homes also don’t want to be next to party houses.

[Sandi-kemi]

I wish they would have done this in the San Fernando Valley, but they didn’t and that’s why we sold our home and moved. A guy on our small street was renting out his house continuously and disrupting the whole neighborhood.

[marih]

Hopefully the "Free-Fall" will result in home prices falling to values working-class Americans can afford to buy.
AirBnB resulted in thousands of houses disappearing from the real estate market, leaving what few remained for sale to skyrocket in price!

[PalmBeachDog]

Apparently Andy’s hairdo got too close to a Palm Springs wind turbine.

[savannahm.laurentian]

People are losing homes left & right, few can afford ONE home, let alone income property. Some can't put food on the table working 4 jobs between spouses. And THIS is a "boo hoo moment?" More cities need to limit this so teachers & students don't leave in droves, closing schools. "Essential workers" need housing close to their jobS.

[lostbydesign]

Imagine staying in hotels and house prices declining. In every city.