Dear Friends & Neighbors,
Short-term rentals (STRs) have become increasingly popular, but they are also causing growing concerns in many areas. After years of deliberation, the county finally presented a short-term rental ordinance for unincorporated areas to the Board of Supervisors on August 27. This followed public feedback, with 47 comments, two-thirds of which supported the ordinance.
Most STRs are located in Carmel Valley, Carmel Highlands, and Big Sur, which are popular tourist destinations. These rentals offer benefits that traditional lodging often cannot, but many are owned by commercial operators based outside the county or even the state. Their focus on maximizing profits often leads to little regard for the residential neighborhoods where they operate. Neighbors frequently experience significant disruptions, including loud parties, unsafe driving, and disregard for neighboring property.
Residents of Carmel Valley and nearby areas spent years developing an ordinance that addressed their concerns. This ordinance restricts full-time commercial STRs to commercially zoned properties. Previously, they were allowed in residential areas. The ordinance does permit homestays, where the property owner resides onsite, as well as STRs on farms. However, the homestay option is too restrictive and fails to provide sufficient options for homeowners struggling to maintain or afford their homes.
While an ordinance is necessary, the current one is not appropriate for other parts of the county. Without swift action, North County, home to 50% of Monterey County's unincorporated population, could become the next hotspot for commercial STRs, leading to the same issues that Carmel Valley faced.
There is also another challenge. In areas where commercial STRs are allowed to operate in residential neighborhoods, 4% of the housing stock will be permitted for short-term rental use. This shift will reduce the number of homes available for long-term residents, exacerbating the housing crisis. Many families already share homes due to high rents and the scarcity of available housing. Removing 4% of homes for STRs may not sound like much, but it effectively removes 12% of the rental housing stock, since only one-third of all homes are rentals. The rest are owner occupied. This means that almost one in eight rental homes may no longer available for residents.
As more people are forced into fewer homes, we may see a rise in multi-family living situations and homelessness due to fewer available homes and corresponding higher rents. Until a well-defined STR ordinance that safeguards housing for residents is in place, North County should follow Carmel Valley's example by not allowing STRs in residential zones and directing them to commercial areas. At the same time, the ordinance must be amended to make homestays and farmstays more workable so residents have options to maintain their properties.
As always, don't hesitate to reach out to my office for assistance. You can reach us at 831-755-5022 or district2@countyofmonterey.gov.
Sincerely,
Glenn Church
District 2 Supervisor
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