LA City Council crackdown on Airbnb: Effect on prices, tourism, inflation

[Pete69]

Any of you in Los Angeles? Notice higher prices since the City of LA declared war on Airbnb?

Seems like rental prices have gone up perhaps 5% to 10% in my area compared to last year. Los Angeles has really messed with the supply of Airbnb stays by banning entrepreneurs from having multiple units. Only a primary residence can be rented out. And if you rent out for more than 120 days you have to pay an $850 fee. Ouch!!! They also imposed another $89 fee ON TOP OF the 14% that they are already collecting.

This HAS to have an effect on supply and demand. For example if I'm aiming to only rent for 120 days in the year then I can sit back and charge FULL PRICE knowing that it's no big deal if I scare off would-be guests. I've got the entire year to get my 120 days rented.

And does this not scare off tourism? Is the city really making more money by collecting more taxes?  City Council is definitely feeding the flames of inflation in LA. In trying to make housing more available as well as affordable, they are also making everything else more expensive because of inflation.

https://la.curbed.com/2018/12/11/18136320/los-angeles-airbnb-rules-city-council

[Tim-and-Holly0]

@Pete69:

Why do people keep voting in Democrats? They are not the friend of the common people.

[Pete69]

Republicans have been leaving the state for decades. All that's left are these liberal / progressive / socialists. The debt tsunami is coming though. Next major financial crisis and cities will implode.

[Az2]

I think both reps and dems are pro tax, so this is little irrelivant 🙂