🎯 STRisker: Bulletin - Palm Springs, CA
Palm Springs Halts Planned Short-Term Rental Cutback, Keeps Existing Limits for Legacy Operators
Palm Springs Backs Off 2025 STR Cut as Market Cools Down
Palm Springs is taking a step back from its planned short-term rental crackdown. The City Council voted Thursday to drop a scheduled 2025 reduction that would’ve slashed the number of annual rental contracts for older, or “legacy,” vacation homes from 36 to 26 per year.
The move keeps long-time operators under their existing cap—32 annual contracts plus four additional stays during the summer slowdown—while newer rentals, permitted after November 2022, stay limited to 26 contracts. It’s a decision city leaders say reflects a changing market, not a softening stance.
City data tells the story: the number of active short-term rentals has dipped from 2,927 in June 2024 to 2,777 this month. Citations are also trending down, and most homes are nowhere near hitting their limits. Of the 2,570 properties that submitted 2024 reports, the average host booked just nine to twelve contracts for the year. Only 8.4% of homes even came close to the old 36-contract cap.
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The council’s 2022 ordinance originally aimed to curb noise, neighborhood disruption, and the rapid spread of vacation rentals across residential areas. But as the market cooled, councilmembers like Jeffrey Bernstein said the tougher limits were no longer necessary. “Things have calmed down and improved significantly,” Bernstein noted, adding that keeping the higher cap might naturally weed out casual hosts while allowing experienced operators to continue “doing it well.”
Not everyone agreed. A handful of residents argued that any leniency keeps too many STRs in residential zones and drives up housing costs. Still, most public speakers—largely property owners—urged the council to maintain or even raise the cap, warning that fewer stays would mean less tourism and reduced tax revenue.
The council’s vote suggests a new phase in Palm Springs’ STR policy—less about cracking down and more about balancing tourism with livability. With ongoing recommendations from city staff and the Vacation Rental Owners and Neighbors group, future tweaks to the ordinance could still be on the horizon. But for now, legacy rentals get to keep their 36-contract cushion as the city eases into 2026 with fewer complaints and fewer hosts pushing the limits.
City of Palm Springs - Vacation Rentals
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