Palm Springs home values are in a free-fall after the city began cracking down on short-term rental permits, according to the Los Angeles Times.
Call it “Airbn-bust,” after years of complaints from residents in the desert enclave, 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 high-demand neighborhoods, like the popular Racquet Club Estates, are way above that mark, with 40% of homes being classified as short-term rentals. Ten of the 66 neighborhoods are at or above the limit set by the city, the Times reports.
One buyer, a YouTube personality who paid $1.5 million for a home, says he’d be lucky to get $1 million on the resale market.
Many bought homes in the city during the pandemic and hoped to turn it into an revenue opportunity, only to find that the permits are non-transferrable, even among family members.
Most residents have voiced support for the ordinance, saying it preserves neighborhoods and maintains the charm of the city, while others have voiced concerns about how sinking property prices could affect the value of their own homes.
Andy Riesmeyer reports on the Breaking Buzz at 4 p.m., Jan. 23, 2024.