Beacon Economics

Los Angeles’ current restrictions on short term rentals are suppressing economic activity and preventing the city from fully capitalizing on tourism demand.

Our new report, authored by Stafford Nichols, finds that expanding LA's short-term rentals via the Vacation Rental Ordinance could have a significant positive impact on the budget.

Key findings include:

~ With the Vacation Rental Ordinance, short-term rentals could generate $70 million in annual revenue within three years.

~ Short-term rentals represent a very small share of Los Angeles’ overall housing stock and expanding them would have little to no impact on the city’s broader housing availability.

~ Current restrictions have cost Los Angeles over $439 million in transient occupancy tax revenue since 2020.

~ Seasonal and recreational units account for less than 1% of the City’s housing stock.

This year, and over the next couple of years, the City is playing host to the FIFA World Cup, Super Bowl, and Olympic Games.

We need a new short-term rental framework to substantially increase demand ahead of these major global events and support fiscally smart policies.

View the study's key findings here:

beaconecon.com

Earlier this year we had the honor of being invited to speak to . Thank you to for making this connection happen!

The migration of residents out of California has been big news for a while. But there is a larger, growing, and more worrisome dynamic that is affecting far more Californians... they aren't moving at all.

In a new post, Research Associate Benjamin Noon finds a significant decline in in-state mobility, something that indicates pervasive economic inefficiency and has real consequences for people's lives. The primary reason? You guessed it, high housing costs! The price people pay for not being able to move at all is high and needs to be examined as much as migration out of the state.

"If housing costs prohibit workers from moving to where their labor is most valuable – where they will be paid the most – then we have structural barriers that will prevent California from having a truly dynamic, productive economy, and will deny Californians the chance to seek a better life," writes Noon.

Californians Moving Out Is Not The State’s Most Worrisome Trend | Beacon Economics Over the past few years, it would have been difficult to miss news coverage reporting that people are leaving California for states like Texas and Florida.