Home sharing registrations in Los Angeles have seen a decline over the past year, as homeowners face increasing pressure from the city’s 2018 Home Sharing Ordinance. The ordinance requires hosts to rent out only their primary residences and obtain a license, leading to a 6% drop in active home sharing registrations from July 2024 to July 2025, according to the Planning Department.
Many homeowners, like Katherine Taylor, have opted out of short-term rentals due to fears of fines and stepped-up enforcement. “The rules are too much,” Taylor said, explaining her decision to stop renting out her Westside guesthouse on Airbnb.
The ordinance has led to a significant decrease in listings, with Hospitable estimating a 44% drop in short-term rental listings in the L.A. metro area. Other factors, such as the conversion of short-term rentals to mid- or long-term rentals to accommodate fire victims, have also contributed to the decline.
The L.A. City Council recently approved new measures to strengthen the ordinance, including increased fines and the hiring of staff to monitor violations. However, budget constraints have delayed the implementation of these plans. Despite this, the threat of higher fines has deterred many hosts from listing their properties.
Derek Jones, Hospitable’s vice president of sales and partnerships, noted that regulation is the biggest factor in the decrease of short-term rental inventory. The potential for fines, which can reach up to $16,000 for larger properties, has made some hosts cautious about continuing their short-term rental operations.
The shift in the market has also led to a rise in mid-term rentals, which are seen as a less risky alternative. Mid-term rentals, defined as stays longer than 30 days but less than a year, have become popular among travel nurses, students, and digital nomads visiting Los Angeles.
Recent Comments