🎯 STRisker: Bulletin - San Diego, CA
Closing the Loophole: San Diego Gets Serious About Illegal ADU Rentals
San Diego’s ADU Crackdown Hits the Short-Term Rental Scene
San Diego is finally closing a loophole that allowed hundreds of accessory dwelling units (ADUs)—think garage conversions and backyard cottages—to be used as short-term rentals, despite a seven-year ban. Back in 2017, city leaders legalized ADUs to address the housing crisis but banned new ones from being rented for fewer than 30 days. Yet, until last month, the city lacked a solid system to stop property owners from turning these units into lucrative vacation listings.
A joint investigation by inewsource and KPBS revealed that at least 170 properties in San Diego hold both a short-term rental license and an ADU designation. One in three of those properties has triggered complaints from neighbors, citing noise, parties, and a sense that their residential blocks were morphing into “mini-hotel districts.” Some residents, like Matt King and Charles Cruz in Pacific Beach, have publicly vented their frustration over late-night rooftop parties and constant visitor turnover.
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City officials say they have been enforcing the rules—removing more than 200 listings, issuing daily fines of $1,000, and investigating complaints—but the process was largely reactive. Until August 2025, Development Services and the Treasurer’s Office weren’t sharing data to automatically flag ineligible units. Now, a new cross-departmental system matches ADU permit records to license applications, blocking owners from getting a short-term rental permit if the unit violates the ban.
Councilmember Sean Elo-Rivera acknowledges complaints have dropped since the city’s 2023 licensing overhaul but stresses the impacts haven’t disappeared. The crackdown is part of San Diego’s larger struggle to balance neighborhood livability, visitor demand, and housing supply. While homeowners still enjoy incentives to build ADUs, city leaders appear more determined than ever to keep these units from sliding into the vacation rental market.
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