Sand Box: STRs worsen the housing crisis

by Raymond Jackson

Short-term rentals (STRs) are worsening California’s housing crisis, stripping the market of homes that should be available for long-term residents  STR websites fuel this crisis, facilitating unpermitted listings, enabling hosts to evade taxes and zoning laws, and resisting enforcement. By listing and processing payments for unlawful rentals, these platforms aid and abet municipal violations while profiting at the public’s expense.

There are well over 100,000 STRs in California—effectively removing 100,000 homes from the long-term market. Building that many new homes in the next decade is unrealistic. Instead, Sacramento must empower cities to regulate STRs, enforce licensing, and reclaim housing for residents.

STR platforms encourage landlords to prioritize vacation rentals over permanent housing, shrinking supply and inflating rents. This drives displacement, with long-term tenants forced out—sometimes illegally—while investors exploit loopholes to evade restrictions. Lower-income renters suffer the most, worsening homelessness and housing insecurity.

Entire neighborhoods are being hollowed out, transformed into transient lodging zones where short-term visitors disrupt community stability. Unlike hotels, many STR operators skirt taxes and safety regulations, depriving cities of critical revenue for infrastructure and affordable housing.

Sacramento cannot allow STR websites to continue undermining California’s housing stock. Cities must have the authority to regulate STRs in ways that prioritize housing for residents, not corporate profits. The state must take bold action to curb STR expansion and restore homes to the people who need them. 

Raymond A. Jackson

Hermosa Beach Councilmember