🎯 STRisker: Bulletin - Monterey County, CA
California Coastal Commission Gave the Green Light to Monterey STR Ordinance
Monterey’s Long Road to STR Rules Finally Hits the Finish Line
After more than 15 years of debate, rewrites, and marathon public hearings, Monterey County has finally crossed the finish line with its short-term rental (STR) ordinance. On August 13, the California Coastal Commission gave the green light, voting 6-2 to certify the rules and weave them into the county’s local coastal plan. For many locals, this moment felt like the end of a long saga—and the beginning of a new era for vacation rentals in some of the state’s most sought-after coastal communities.
The ordinance doesn’t please everyone. Commissioner Chris Lopez, who also sits on the county’s Board of Supervisors, stood by his opposition, calling out hefty permit fees that can hit around $12,000 just to get started. He argued that such costs could limit coastal access for inland residents and make STRs more exclusive. Still, the majority of commissioners weren’t swayed, saying the new rules strike a fair balance.
Here’s the big change: commercial STRs—think full-time vacation rentals—are now banned in Big Sur and Carmel Highlands. Currently, 37 operators are active there, and under the new ordinance, they’ll have to phase out within seven years. Inland areas already face similar limits. In their place, the county is encouraging homestays, where owners rent rooms in their own homes or allow limited short-term use—like three stays a year, up to 30 days each. The idea is to preserve housing for locals while still giving tourists a chance to stay.
Several commissioners tried to soften the blow with amendments. Commissioner Jose Preciado pushed to grandfather in existing operators, but the proposal failed. Commissioner Caryl Hart offered a creative compromise to let properties with a caretaker rent out an additional structure, but that didn’t make the cut either.
Supporters of the ordinance, including Supervisor Kate Daniels and county planning staff, defended the rules as a way to protect residents from being priced out. They argued that an unchecked STR market had driven up housing costs and drained local communities of teachers, hospitality workers, and other essential workers. Without them, they warned, even visitors would lose out—fewer services, fewer vibrant neighborhoods, and ironically, less access.
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Opponents, including the Monterey County Vacation Rental Alliance, countered that restricting STRs will shrink affordable lodging options for visitors. With VRBO listings already showing sky-high rates—some topping $8,000 a night—it’s clear the affordability issue isn’t going away anytime soon.
Still, the commission majority took a “good enough” approach. Commissioner Raymond Jackson summed it up:
“It may not be perfect, but I don’t think we should let perfect be the enemy of the good.”
And so, after years of wrangling, Monterey has its rulebook. The county will no doubt face growing pains as the ordinance rolls out, but one thing’s certain: the STR debate in this coastal gem is far from over.
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