How do you think Airbnb rentals has affected our County’s housing market?

By
Real Estate Agent with BAILEY PROPERTIES CA BRE# 01897214

 

Here are some interesting "Stats" for you!  Within Santa Cruz County is, The City of Santa Cruz. In the city limits there are over 23,000 personal residences, in which 53% of them are rental properties!  Also out of the over 23,000 homes there are only 300 homes, where the owners have purchased and are holding Vacation Rental Permits ( Also, not all permit holding owners rent their homes ). If these statistics are similar in percentages with other parts of this community? I don't see this as a main issue which would overly affect our county's housing market. 
 
Within Santa Cruz County exists Four Cities, numerous Village - Towns and "Named Neighborhoods".   I believe the majority of vacation rental permit holding properties are along the East Cliff , West Cliff, SeaCliff, Rio Del Mar, beach front neighborhoods. All of these beach area properties, values are very high. If rented month to month? The rental rates for many of these homes would not be affordable by most families.  Also a large amount of these coastal neighborhood homes are not full time residences. Actually the Mayor of the City of Capitola, ( a City within this county) ,Stephanie Harlan, shared recently that 56% of the Town's housing are 2nd homes for families that live out of the area! Have you paid attention to the prices of those Capitola Properties, with most having walking access to the beach and village?  
 
Personally, I feel that The property owners who are turning older small neighborhood affordable homes or even apartments into VRBO Vacation Rental Units are the types of Rental units that do affect our housing market.
Maybe the county Coastal Street second homes affect the housing stock availability in a small way as well, although again, most surely are un-affordable for month to month rentals. However, If more of these were allowed to be Permitted and used as VRBO Vacation Rentals . The activity from these rentals would help the local business, and the County financially.
 
Sadly, I see our beautiful beach town population far beyond what iwas developed for. Then add the areas huge popularity, which makes inventory tight and pushes values up. Also over population along with housing market issues are affecting Santa Clara Valley ( 20 minutes away ). This problem is far bigger than our little town , and not going away.

 

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