San Diego is considering a controversial $5,000-per-bedroom annual tax on short-term rentals and vacation homes, potentially impacting more than 10,000 properties. Proponents say the measure could generate $135 million annually and ease the city’s housing crisis. However, critics, including AirDNA economist Bram Gallagher, argue it could wipe out affordable short-term rentals and disproportionately affect local hosts. Gallagher notes that only a third of San Diego’s listings are professionally managed and nearly 40% cater to medium-term stays. With average occupancy around 117 nights per year, the tax could push small operators out of business and drive prices higher across the board.

The tax could “eradicate” mom-and-pop rentals and shift the market to high-end listings.

A proposed $5,000-per-bedroom tax on San Diego short-term rentals could wipe out small hosts, AirDNA warns, as nearly 40% serve mid-term renters.

San Diego Mulls $5,000-per-Bedroom Tax on Short-Term Rentals

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San Diego Mulls $5,000-per-Bedroom Tax on Short-Term Rentals