As Los Angeles gears up for a surge of tourists for this year’s FIFA World Cup and the 2028 Olympics, vacation rental giant Airbnb is urging the city of Los Angeles to legalize thousands of new short-term rentals. The company promises that the expansion will add more than $100 million in tax revenue to city coffers amid a severe budget crisis. But opponents say more short-term rentals will further strain an already limited housing supply.
Better Neighbors LA, a coalition of housing activists and labor groups, countered the Airbnb proposal with its own revenue generating idea: enforce the city’s existing home sharing law and collect fines. The group estimates the city could immediately rake in $95 million in two months by stepping up enforcement.
Randy Renick, Better Neighbors LA executive director, said beefed-up enforcement is a “simple fix for the city” that would “raise enormous amounts of money” and “return thousands of affordable housing units to the market for long-term renters.”
Better Neighbors’ coalition includes the hotel workers union UNITE HERE Local 11, along with organizations like Venice Community Housing and Strategic Actions for a Just Economy.
Last year, Airbnb poured $19 million into lobbying and political contributions at the state level, according to the California Secretary of State’s online database. The company also donated $570,000 to the nonprofit Salvadoran American Leadership and Educational Fund at the request of L.A. City Councilmember Traci Park and $25,000 to the North Valley Family YMCA at the request of Councilmember John Lee.
Airbnb wants the city to revive a proposal first made eight years ago that would have allowed property owners to list second homes on platforms like Airbnb, Vrbo, or booking.com. The current proposal would add up to about 31,000 units to the city’s short-term rental market.
Under L.A.’s Home-Sharing Ordinance, which took effect in 2019, short-term rental hosts are allowed to list only their primary residences on vacation booking platforms.
The Airbnb-backed coalition, Save Our Services, says the additional vacation rentals could generate more than $100 million for the city in “bed taxes” and $100 million in sales tax revenue from tourist spending.
Labor unions like the Teamsters Joint Council 42, the Los Angeles/Orange Counties Building and Construction Trades Council and the International Association of Theatrical Stage Employees, along with the Central City Association of Los Angeles and community groups like the Brotherhood Crusade and the Koreatown Youth and Community Center, back the effort.
Airbnb spokesperson Justin Wesson said allowing a limited number of vacation rentals could “support stabilize funding for essential services, support neighborhood-based tourism and prepare the city for upcoming global events.”
Airbnb supports stronger enforcement of the city’s Home-Sharing Ordinance and urges the city to require all vacation rental platforms to share data and remove illegal listings. Airbnb is currently the only company that does so voluntarily.
The Better Neighbors LA report dismisses Airbnb’s revenue claim as “fanciful.” In 2020, Los Angeles Director of City Planning Vince Bertoni was also skeptical that expanding vacation rentals would draw additional visitors to Los Angeles.
Groups like Better Neighbors LA fear the city will lose much needed housing to tourist rentals, especially if city officials permit additional vacation rentals. Currently, fully half of the Los Angeles vacation rentals listed on booking sites are illegal, yet only a tiny fraction of violators are cited. The city has collected about $667,000 in fines under the 2019 home sharing law.
City Councilmembers Katy Yaroslavsky and Hugo Soto-Martinez support Better Neighbors’ plan to increase enforcement of the city’s current law.
“This report makes clear that the path forward is enforcing the home-sharing laws already on the books,” Soto-Martinez said in a statement. “If we fully implement the rules we passed, we can protect tenants and generate additional revenue for the city without sacrificing housing.”
L.A.’s Home-Sharing Ordinance generally allows individuals to list only their primary residences for up to four months. Home sharing is not permitted in dwellings covered by the city’s rent control law or in affordable housing units.
A 2024 investigation by Capital & Main and ProPublica found tourists could rent apartments in dozens of rent controlled buildings in apparent violation of the law, with some owners listing fabricated city registration numbers.
Last year, the City Council voted to pursue reforms, including requiring platforms to block illegal transactions and allowing individuals to sue suspected violators, but the effort hasn’t moved forward. Los Angeles Housing Department officials have said they lack the staffing and resources to effectively enforce the ordinance.
City Councilmember Heather Hutt has requested a briefing on the status of the ordinance from the City Council’s budget and finance and planning and land use committees.
Frequently Asked Questions
What is Airbnb proposing for Los Angeles?
Airbnb is urging the city of Los Angeles to legalize thousands of new short-term rentals, promising more than $100 million in tax revenue.
What is Better Neighbors LA’s response?
Better Neighbors LA proposes enforcing the city’s existing home sharing law and collecting fines, estimating the city could immediately rake in $95 million in two months.
What does L.A.’s Home-Sharing Ordinance allow?
L.A.’s Home-Sharing Ordinance allows individuals to list only their primary residences on vacation booking platforms for up to four months.
As Los Angeles considers these competing proposals, will the city prioritize potential revenue gains or address concerns about housing availability and neighborhood disruption?
