The coastal markets are for the affluent, and the supply is shaping itself to the demand. We are seeing wholesale changes in places like downtown Carlsbad, where the quaint older homes and businesses are being bulldozed for redevelopment, mostly for higher-end condos.
Another change is how Airbnb and VRBO.com has fueled a cottage industry of short-term rentals. Properties that made no sense as monthly rentals are now catering to tourists and other short-termers to pick up more income.
There will be some turbulence along the way, but vacation rentals are here to stay. There aren’t enough hotels to satisfy the demand (LINK), and if you don’t mind the additional hassles, the short-term rentals can be very lucrative. Now a city councilman in Los Angeles thinks he needs to regulate it (H/T daytrip):
“Commercial ventures have purchased large numbers of rental units or even entire apartment buildings and converted them into de facto hotels, reducing and threatening the city’s stock of rental housing and affordable housing, and that is wrong,” Bonin said.