Sacramento leaders are weighing a new set of proposed rules that could significantly reshape the short-term rental market, requiring most hosts to live on-site if they want to continue renting out their properties for stays under 30 days. If approved, the change could phase out a large portion of current listings across the city.Airbnb told KCRA 3 in a statement the impact could be substantial: “Airbnb supports thoughtful regulations that balance the benefits of short-term rentals with the needs of the community. However, this proposal would be detrimental to the local tourism economy and puts over $2.4 million in annual tax revenue from hosts at risk at a time when the city is facing a major budget deficit.”For hosts like Debra Schmidt, who has been renting out her Sacramento home since 2014, the proposal raises concerns about financial stability. She says the income has become a key part of how she maintains her property and worries others who made similar investments could be affected.Schmidt adds many homeowners entered the short-term rental space with the understanding they could offset costs by renting out additional units, like ADUs, and now feel those expectations may be shifting.City officials, however, say the proposed changes are aimed at improving quality of life in neighborhoods and easing pressure on Sacramento’s tight housing market. By limiting investor-style rentals, leaders hope more units could return to long-term housing.Supporters of the plan, including Aamir Deen, President of Unite Here Local 49 worker union, say short-term rentals can take away from already limited housing supply and, in some cases, impact industries like hospitality by creating uneven competition.”When there’s a large short-term rental market that can take tourists out of hotels, out of union hotels, and that impacts my members because their hours of work are directly related to occupancy. So when occupancy is down, people are losing hours. They could be losing benefits, and they could be losing their livelihood,” Deen said.But hosts like Schmidt argue short-term rentals serve a different purpose, offering flexible lodging options that don’t necessarily compete with traditional hotels.The proposal is expected to move to the full Sacramento City Council in the coming weeks, where a final decision will shape the future of short-term rentals in the city.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
Sacramento leaders are weighing a new set of proposed rules that could significantly reshape the short-term rental market, requiring most hosts to live on-site if they want to continue renting out their properties for stays under 30 days.
If approved, the change could phase out a large portion of current listings across the city.
Airbnb told KCRA 3 in a statement the impact could be substantial: “Airbnb supports thoughtful regulations that balance the benefits of short-term rentals with the needs of the community. However, this proposal would be detrimental to the local tourism economy and puts over $2.4 million in annual tax revenue from hosts at risk at a time when the city is facing a major budget deficit.”
For hosts like Debra Schmidt, who has been renting out her Sacramento home since 2014, the proposal raises concerns about financial stability. She says the income has become a key part of how she maintains her property and worries others who made similar investments could be affected.
Schmidt adds many homeowners entered the short-term rental space with the understanding they could offset costs by renting out additional units, like ADUs, and now feel those expectations may be shifting.
City officials, however, say the proposed changes are aimed at improving quality of life in neighborhoods and easing pressure on Sacramento’s tight housing market. By limiting investor-style rentals, leaders hope more units could return to long-term housing.
Supporters of the plan, including Aamir Deen, President of Unite Here Local 49 worker union, say short-term rentals can take away from already limited housing supply and, in some cases, impact industries like hospitality by creating uneven competition.
“When there’s a large short-term rental market that can take tourists out of hotels, out of union hotels, and that impacts my members because their hours of work are directly related to occupancy. So when occupancy is down, people are losing hours. They could be losing benefits, and they could be losing their livelihood,” Deen said.
But hosts like Schmidt argue short-term rentals serve a different purpose, offering flexible lodging options that don’t necessarily compete with traditional hotels.
The proposal is expected to move to the full Sacramento City Council in the coming weeks, where a final decision will shape the future of short-term rentals in the city.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel