Update, September 2026: The final vote did not happen by May as expected. The City Council's Ordinance Committee reviewed the rules in April and on June 9, 2026, then voted 2-1 (with Council member Oscar Gutierrez abstaining) to send a revised version to the full Council. The committee removed the on-site parking requirement, added a two-night minimum stay, and banned short-term rentals and homeshares in high fire hazard areas. It also asked staff to bring options on how many short-term rentals one person can own and operate, and on proof of insurance. The full City Council is now scheduled to consider the final ordinances on Tuesday, October 6, 2026, at 2 p.m. at City Hall. Because part of Santa Barbara is in the coastal zone, the coastal rules will also need California Coastal Commission certification after adoption. Public comments can be sent to [email protected].
Current Status
The Santa Barbara Planning Commission voted 4-2 on March 5, 2026 to advance the proposed STR ordinance to the City Council, with a final vote expected by May 2026, a process described as "about a decade in the making."
Background and Purpose
The ordinance stems from Housing Element Program HE-19, which directed the City to develop STR rules to incentivize long-term housing over transitory use. The City also launched an STR Enforcement Program in 2023 to address the many vacation rentals already operating without permits.
Two Types of STRs Defined
- Short-Term Rental (STR): Rental of a whole unit for 30 days or less, with no host present
- Homeshare: Owner or designated host is present and rents out only a portion of the unit
Where STRs Would Be Allowed
- Inland zones: STRs and homeshares prohibited in all residential zones; only allowed in non-residential and mixed-use zones like downtown, Milpas Street, and Upper State Street
- Coastal zone: Homeshares allowed in all zones; STRs prohibited in single- and two-family residential zones
Key Rules
- Occupancy: Max 2 guests per bedroom, up to 6 daytime guests
- Parking: 2 on-site spaces required for up to 4 bedrooms; 3 for 5+ bedrooms (the Ordinance Committee later removed this requirement)
- No displacement: Unit cannot have had a long-term renter within the past 24 months
- License expires on sale: STR authorization does not transfer to new owners
Controversy
Critics argue the ordinance is so restrictive it amounts to a de facto ban, since many currently legal, tax-paying STRs can't meet the new parking and zoning rules. Supporters cite neighborhood issues like noise and late-night parties. The city has estimated it could lose roughly $2.7 million a year in transient occupancy tax revenue. Open questions heading into the October vote include limits on how many STRs one person can operate and how to handle density caps in the coastal zone.
What It Means for Buyers and Owners
If you own a vacation rental in Santa Barbara, or you're considering buying a property with short-term rental income in mind, these rules can change a property's value and your plans for it, especially because STR authorization won't transfer on sale. Call or text me at (805) 607-9709 before you buy or sell, and I'll help you understand what's allowed for a specific address.
