City Council to Draft New Short Term Rental Ordinance Following Recent Feedback

In the heart of Santa Barbara's city hall, council members gathered on August 5, 2025, to address a pressing issue that has stirred both concern and curiosity among residents: the regulation of short-term rentals (STRs). As the sun filtered through the windows, illuminating the room, city officials prepared to discuss the future of these rentals, which have become a significant part of the local housing landscape.

The meeting began with a comprehensive overview of the STR program, highlighting the need for updated regulations. City staff presented a historical context, tracing the evolution of STR policies from 2013 to the present. They noted that while STRs have gained popularity, they have also raised concerns about the loss of long-term housing and neighborhood integrity. The council's previous direction was clear: a balance must be struck between accommodating visitors and preserving the community's character.

Key discussions revolved around defining short-term rentals and their various forms, including home shares, where the primary resident is present during the rental period. The council emphasized the importance of distinguishing between hosted and non-hosted rentals, with staff expressing concerns about the latter's potential to disrupt neighborhoods.

As the conversation progressed, the council considered the implications of a new STR ordinance. The proposed framework aims to preserve long-term housing while allowing for a regulated STR market. Council members expressed a consensus to prohibit STRs in inland residential zones, focusing instead on designated areas where they could operate under specific permits. This approach seeks to mitigate the impact of transient visitors on residential communities.

The staff outlined a vision for the STR program, emphasizing goals such as neighborhood compatibility, effective enforcement, and a straightforward permitting process. They proposed operational standards that would include occupancy limits, noise regulations, and a code of conduct for renters. The council was urged to consider the inclusion of home shares in all zones where residential use is permitted, fostering a more inclusive environment for residents who wish to share their homes.

As the meeting drew to a close, the council prepared to engage with public comments, inviting community members to share their thoughts on the proposed changes. The atmosphere was charged with anticipation, as residents voiced their experiences and concerns about the impact of STRs on their neighborhoods.

Looking ahead, the council plans to draft an ordinance for review, with a timeline that includes public outreach and consultations with various stakeholders. The process is expected to unfold over the coming months, culminating in a comprehensive STR program that reflects the community's needs and aspirations.

In a city known for its picturesque landscapes and vibrant culture, the outcome of this meeting could shape the future of Santa Barbara's housing market and the experience of both residents and visitors alike. As the council navigates this complex issue, the balance between tourism and community preservation remains at the forefront of their discussions.