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June 30.2025
2 Minutes Read

San Diego Reopens Applications for Short-Term Rentals: A Hope for Housing Relief?

City of San Diego reopens applications for Mission Beach short-term rentals

San Diego's Short-Term Rental Landscape Shifts

The City of San Diego is once again accepting applications for short-term rentals in Mission Beach, as they reopen the process for Tier 4 occupancy licenses starting Tuesday. This window for applications will last 45 days, ending on August 15th, allowing current license holders to upgrade to the more desirable whole home rental list.

After a lockdown on applications for over two years, this reopening marks a significant change in the city's approach toward rental regulations. Previously, applications were halted due to reaching capacity, causing frustration among potential new rentals and raising concerns about housing availability for locals.

The Impact of Short-Term Rentals on Local Housing

The rise of short-term rentals has had visible repercussions on the local housing market. Residents like Marty Zimmerman have seen firsthand the effects of rising property costs, with some being forced to vacate long-term homes because of soaring rents driven by changing ownership and market dynamics.

Zimmerman recalls selling his property due to exorbitant taxes and a new landlord’s promise to raise rents, an all-too-common scenario amid the ongoing shift toward vacation rentals. Once meant to supplement income for homeowners, the escalation of short-term rentals has now marginalized local residents, pricing them out of their neighborhoods.

Accountability Through Regulation

In an effort to mitigate these challenges, the City implemented the Short-Term Residential Occupancy (STRO) Ordinance, designed to balance the needs of both tourists and residents. The regulations are intended to provide accountability to homeowners who rent out their properties while capping the number of rentals to ensure continuous housing opportunities for locals.

Will More Rentals Mean More Locals Will Benefit?

Whether this reopening of applications will create a healthier balance remains to be seen. As San Diego continues to grapple with a housing crisis exacerbated by the popularity of vacation rentals, the city’s decision to allow more licenses may either provide new opportunities for renters or deepen the divide between visitors and residents–a critical moment for the community to navigate.

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