Unhosted short-term rentals (STRs) from providers like Airbnb and VRBO will soon be regulated in the coastal zone, but recommendations from the Coastal Commission could push the City’s cap on unhosted STRs from 800 units to 1,050 units.
The Long Beach City Council first regulated short-term rentals in June 2020, allowing for only hosted STRs (rentals used as the host’s primary residence).
Later that year, they decided to allow unhosted STRs—with the caveat that only 800 would be allowed within the City. Council members debated the number extensively before settling on 800, among a list of other regulations to prevent nuisance rentals.
Those regulations could not be enforced in the coastal zone without Coastal Commission approval. On Tuesday, March 9, over a year after submitting its ordinance to the commission, the Long Beach City Council received a report back on the commission’s recommendations.
Those recommendations included a cap of 350 unhosted STRs in the coastal zone, pushing the City’s total cap to 1,050.
Though the cap is effectively increased by the recommendation, city staff said that Long Beach was unlikely to hit the 800 cap.
According to Deputy Director of Development Services Christopher Koontz, the City has only received about 200 applications for unhosted STRs outside the coastal zone since the council first passed registration requirements in 2020.
“There’s no danger, based on the numbers, of [the City exceeding the 800 cap],” Koontz said. “But I understand the theoretical concern that if there were a rush of a lot of short-term rentals outside the coastal zone, that it could create that situation.”
Housing advocate Leanna Noble with Long Beach Residents Empowered criticized the increase, saying that the more unhosted STRs the City allows, the less housing units will be available for Long Beach residents.
“We continue to see outrageous escalations in rents, 32% in my neighborhood and in other neighborhoods it’s even worse,” Noble said. “Those rent increases are going to be escalated if you approve this increase in the AirBNBs because you are going to decrease the available rental units.”
Others, like Danielle Wilson with Unite Here Local 11, said that short-term rentals were an “existential threat to hotel workers.”
“They take housing away from working people and displace their jobs,” Wilson said. “This is the Uber, Lyft and Amazon of our industry.”
As housing advocates decried the changes, multiple residents living in the coastal zone encouraged the council to accept the commission’s recommendations.
Susan Bailey, who lives in the coastal zone, said unhosted STRs in any district “offer people an opportunity to come with their family, to cook in a kitchen and have an affordable place to access the coast.”
Others said that Airbnb offers opportunities for small entrepreneurs to support their families and local workers through cleaning and turndown services.
Councilmember Roberto Uranga, who sits on the Coastal Commission, said he had concerns about the commission “overstepping its authority” and broached the idea of rejecting their recommendations and sending the ordinance back for further deliberation.
But Koontz urged the council to approve their recommendations, as further deliberation by the commission could take 18 months or more—leaving unhosted STRs in the coastal zone completely unregulated. He recommended approving the ordinance and adjusting its language later on.
“We just need to have some policy in place because it’s a little bit of a wild west in the coastal zone right now with STRs,” Councilmember Suzie Price said.
Price directed staff to report back to the council when the City hits 700 unhosted STRs. The report back would give council an opportunity to adjust the cap and ensure that unhosted STRs remain under the original cap of 800. (Staff were previously directed to report back annually on the number of STRs.)
“Let me make it abundantly clear: I have no interest in going over the 800 cap,” Price said.
The regulations approved in 2020 allow residents to contest certain unhosted short-term rentals. By collecting signatures in a certain area, a host could be banned from hosting in their unit (via removal of their listing from Airbnb or VRBO).
The Coastal Commission recommendations also make banning unhosted STRs more difficult for residents. In addition to completing a successful petition, residents would also have to seek a Local Coastal Development Permit (with Coastal Commission approval) before adding their census block to the list of restricted areas. The same would apply for restricting certain buildings.
“We still have a long way to go in terms of building new housing in the city and protecting housing stock,” Councilmember Al Austin said. “I think we settled on a cap that makes sense for our city […] We reserve the right […] to modify this policy to make it even better.”
The ordinance will go back to the Coastal Commission for final certification.
