SANTA BARBARA, Calif. — The Santa Barbara City Council unanimously approved new regulations for short-term rentals Tuesday, setting new limits on where vacation rentals can operate and how they are managed.
The decision follows years of debate over the impact of short-term rentals on housing, neighborhoods, tourism and coastal access.
Under the new rules, short-term rentals in inland Santa Barbara will generally be limited to certain commercial areas that allow housing. They will not be permitted in residential zones or high-fire areas.
Owners will generally be limited to operating one short-term rental. The regulations also establish a two-night minimum stay and quiet hours from 10 p.m. to 7 a.m.
Short-term rentals will also be prohibited in certain housing types, including accessory dwelling units and some affordable and employee housing.
Supporters say rules protect housing and neighborhoods
City officials say the regulations are intended to create a clearer licensing and enforcement system while encouraging the preservation of long-term housing.
Councilmember Meagan Harmon said the city was trying to balance several competing interests.
“I really think that we have found a balance that speaks to our obligation to provide visitor-serving accommodation, to provide access, and to also maintain the quality of life that makes our coast so remarkable with the world.”
The city has also said the regulations are designed to address concerns about the conversion of homes from long-term housing into vacation rentals.
One resident speaking during Tuesday's meeting pointed to the number of homes being used for overnight stays.
“I think it's ironic on the day we talk about rent control, that we would allow 1,800 homes to be available for overnight rentals.”
Short-term rental operators push back
Short-term rental operators and supporters argued the regulations could have significant economic consequences for property owners and businesses that rely on visitors.
One operator said the rules go beyond reasonable regulation.
“Responsible operators already follow all these rules. Okay, but these ordinances go much farther and taken together, they make almost a near-total ban.”
Another speaker warned about potential impacts on workers and local businesses.
“The result would be hundreds of lost licenses or business licenses, a significant loss of transient occupancy tax, lost work for the cleaners, the gardeners, the maintenance workers, the local businesses who depend on these visitors.”
City finance staff have estimated the restrictions could reduce transient occupancy tax revenue by nearly $3 million annually.
Coastal rentals remain a major point of debate
The city's Coastal Zone regulations still require approval from the California Coastal Commission.
Supporters of coastal short-term rentals argued they can provide an alternative to expensive hotel stays for families visiting the area.
One speaker said some vacation rentals are already far too expensive to serve as affordable coastal accommodations.
“California Coastal Commission allowed STRs in coastal zones for the purpose of allowing families to stay near the coast without having to pay large fees for hotels. But in our neighborhood, nightly fees are $2,000 or more, plus the taxes and plus the cleaning fee per night.”
Another speaker criticized the current cost of some coastal vacation rentals.
“The 2021 ruling was to allow the city time to address the low-cost coastal accommodations. Yet Airbnb advertises long weekends in my area for $11,000, $12,000 and even higher. These are far from affordable, and quite frankly, it's a slap in the face to that ruling.”
Others argued short-term rentals are not a major cause of the city's housing shortage.
“Short-term rentals are currently not a significant driver of this shortage. The answer is to build more housing.”
When do the new rules take effect?
The city expects the inland regulations to begin rolling out in January 2027. Operators will have six months to apply for a license.
The Coastal Zone regulations will require approval from the California Coastal Commission before they can take effect.
The new rules mark a significant change in how Santa Barbara regulates short-term rentals, with the city attempting to balance visitor accommodations and tourism with long-term housing and neighborhood concerns.
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