SOUTH LAKE TAHOE (Feb 10, 2024) – In a scathing critique of South Lake Tahoe’s stringent short-term rental ban, Airbnb investor Rohin Dhar, known for his vacation rental properties across scenic destinations, decried the measure as a catalyst for a “short-term rental Armageddon.”
In a pointed rebuke of South Lake Tahoe’s stringent short-term rental restrictions, seasoned Airbnb investor Rohin Dhar has criticized the city’s housing policies, asserting that the ban, implemented over five years ago, has exacerbated the housing affordability crisis. Dhar’s dissenting voice adds fuel to the ongoing debate over the effectiveness of Measure T, a citizen-initiated ballot measure aimed at regulating short-term home rentals in residential areas.
The measure, enforced at the end of 2018, brought about a near-total ban on new vacation home rental permits in residential areas, with a phased-out approach over three years. However, a crucial nuance in Measure T’s framework is its exemption of existing and future short-term rentals in nonresidential areas. Moreover, permanent residents retain the ability to rent their entire homes for up to 30 days a year, providing a limited avenue for homeowners to engage in short-term rentals without running afoul of the ban.
Despite these provisions, Dhar contends that the ban has inadvertently led to a decline in home prices, allowing affluent individuals to acquire second homes, often leaving them vacant. In his widely-viewed post on X, Dhar criticized the measure, claiming it has not addressed the core issues of housing affordability but has instead created what he dubs a “short-term rental Armageddon.”
Measure T’s fate has been contentious, with an appeals court upholding the ban on short-term rentals last summer after legal challenges from the South Lake Tahoe Property Owners Group. However, questions surrounding the rights of permanent residents to rent their homes remain unsettled and are awaiting further deliberation at the trial court level.
The housing crisis in South Lake Tahoe persists, with home prices having surged approximately 42% from the end of 2018 to the end of last year, reaching an average home value of $649,322, according to Zillow. A recent downturn has been observed, but the median rent for all bedrooms and property types in the city remains at $2,975, nearly 50% higher than the national median.
As stakeholders grapple with the city’s housing challenges, the debate over the impact of short-term rentals on long-term rental prices continues. Research suggests that short-term rental ordinances can lead to a decline in contracted long-term rental prices, a phenomenon attributed to an oversupply resulting from the shift from short-term to long-term rentals.
While the discussion rages on, Dhar’s critique sheds light on the complex interplay between short-term rental regulations, housing affordability, and the challenges faced by both residents and investors in South Lake Tahoe. The housing debate remains a hot topic, with stakeholders anxiously awaiting further developments in this ongoing saga.
