By Rachel Dovey.

San Diego’s short-term rental market could be in for a sea change. On Monday, the city council voted to outlaw vacation rentals in secondary homes, theoretically limiting short-term stays to primary residences. The new law (borrowing from similar regulations in Boston and New Orleans) is much stricter than short-term operators had expected — and is being hailed by labor and housing advocates as a means of reclaiming valuable local rental stock.

From the San Diego Union-Tribune:

The action, following a more than six-hour-long, sometimes emotional hearing, marks a striking departure from the centerpiece of a compromise proposal crafted by Mayor Kevin Faulconer’s office over the last several months…. His plan would have permitted vacation rental hosts to rent out their primary residences while they are not present for up to six months a year — plus one additional home with no limit on the number of days annually.

The new council-approved plan, however, nixes the allowance of an additional home. And while the council was expected to exempt the Mission Beach neighborhood, where an estimated 44 percent of the housing stock is short-term rentals, they decided not to grant it any special allowances, the paper reports.

“Today’s vote by the San Diego City Council is an affront to thousands of responsible, hard-working San Diegans and will result in millions of dollars in lost tax revenue for the City,” Airbnb said in a statement to the Union-Tribune. “San Diego has been a vacation rental destination for nearly 100 years and today’s vote all but ensures activity will be forced underground and guests will choose alternative destinations.”

[divider] [/divider]

Read the full story at Next City.