Despite the Los Angeles City Council cracking down on Airbnb hosts in the last two years, the home sharing business is still booming, it seems. A new report by CBRE came out on January 27th indicating that in the fourth quarter of 2019, LA had the most active home sharing units in the country. Home sharing includes units from Airbnb, Homeaway, Sonder, and more.
Short Term Rental Restrictions
The city of Los Angeles has enacted a variety of rules restricting home sharing over the last few years. In July 2019, some rules that went into effect included hosts having to register with the city, renters needing landlord approval to host, and rent controlled units were banned from participating in home sharing, among other restrictions. However, these rules weren't enforced until November 1st of 2019.
After that, the city gave Airbnb a list of 164,784 addresses for rent controlled units requesting these listing be removed. Another almost 5,000 hosts in Los Angeles were issued warning letters telling them they weren't in compliance.
Many were worried that this would limit the amount of short term rental units that would be available in the city. But, this new CBRE report seems to reveal that these restrictions haven't hurt the home sharing industry in LA at all.
The CBRE Report
At the end of 2019, CBRE found that there was currently 23,413 homeowners and renters hosting units for home sharing websites. That's a whopping 9% increase from 2018 when the rules for Airbnb hosts were much less strict.
Los Angeles also came in first when it comes to the amount of short term units compared to hotels rooms. For every 100 hotel rooms in Los Angeles, there's a little over 22 home sharing units. This is in comparison to New York where there are only 17 units for every 100 hotel rooms.
Despite this, it doesn't seem like the hotel industry in Los Angeles is struggling in light of these findings. The average hotel room rate has continued to inflate incrementally, so there appears to still be a demand.
Do you want to learn more about your city? Then check out this article, "5 Best Happy Hours on LA's East Side."