September Real Estate Update

Author: Raquel Fernandez, Broker Associate 

Coronado Real Estate Agents

San Diego’s New Short-term Rental Ordinance

We are so used to renting vacation properties thru Airbnb or a VRBO when we travel. It really has become a very comfortable way of vacationing, especially when traveling with children.

San Diego attracts many tourists looking for the year-round mild weather and beautiful beaches. Many of our tourists enjoy having family reunions, birthday parties, bachelorette parties at these short-term vacation rentals which has caused some disturbance to local residents, many of whom have filed noise complaints with the city repeatedly. The San Diego City Council seems to have heard those complaints as they’ve recently approved a short-term rental ordinance that will limit the amount of short-term rental permits issued throughout the city of San Diego. As of January 2022, it’s estimated that there are 12,300 short-term rentals in the city of San Diego. The new ordinance will limit the number of short-term rentals to 1% of the city’s total 540,000 housing units, which means that only 6,500 short-term licenses will be issued across the city. This new regulation will lead to a 48% reduction in properties available for rent for less than 30 consecutive days.

Mission Beach, however, has been granted an exception. They will be allowed a larger cap of 30% of their housing units or 1,080 licenses.

The licenses will be issued on a lottery basis and the application period has just opened October 3rd. The ordinance will take effect May 1st, 2023. Residents can apply on the City of San Diego’s website.

What does this mean for the Coronado Rental market?

This new ordinance will have no impact on the Coronado rental market. The City of Coronado has had an ordinance for decades that has banned short term rentals less than 26 consecutive nights. A regulation that our property management team at the Coronado Shores Company has successfully dealt with since before the creation of Airbnb/VRBO.

How about the local real estate market?

The new ordinance will reduce the number of properties used as short-term rentals so we could anticipate the short-term rental prices to go up, not only due to the reduction in supply but also due to the increase in license fees that the homeowners will now have to incur. The application fees are as high as $1,000 per whole-home rental unit, but a license is not guaranteed. The city will assign licenses based on a lottery system.

We also should anticipate some of the unlicensed short-term rental to enter the re-sale market. The City of San Diego will have roughly 5,800 properties that were not awarded a short-term rental license and the question is whether the owners will convert these properties to mid-term/long-term rentals or will they sell them.

For more information, please contact me at 619-453-4513 or visit my website at

Raquel Fernandez,

Broker associate at Coronado Shores Co.

Cell: 619-453-4513

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The Coronado Shores Co. (DRE #00658736) is a boutique real estate brokerage that specializes in the Coronado Shores. Looking to buy, sell or lease your home? Call our Coronado Real Estate Agents to get the job done.

Check out our market update in the Coronado Times!