The California Coastal Commission just approved a big change for vacation rentals in Monterey County. The main goal is to cut back on “unhosted rentals.” These are places where the owner is not present when guests stay, like full houses listed on Airbnb or Vrbo. In Big Sur and Carmel Highlands, these rentals would be banned completely. Along the rest of the coast, only 4% of single-family homes could be used as vacation rentals.
For many locals, this is a major shift. Big Sur has just 37 of these unhosted rentals, but if the rule goes through, all of them would be eliminated. In Carmel, nearly half of the unhosted rentals would disappear.
Exceptions and What’s Still Allowed
The rules are not a full ban on short-term rentals. There are some exceptions built in. Homeowners can still rent out their properties up to three times a year without breaking the rules. Also, “hosted rentals” will continue to be allowed. These are situations where the property owner or a manager lives on-site. For example, renting out a room in a house or a separate guest unit while the owner is still there would be fine.
This means people who want to share their homes casually still have options. The biggest impact is on those who run their properties like full-time vacation businesses.
Who Would Be Affected the Most
The crackdown targets certain areas harder than others. Here’s what the proposal would mean in real numbers:
- Big Sur: All 37 unhosted rentals would be banned.
- Del Monte Forest (near Pebble Beach): 26 of 83 rentals would be removed.
- Carmel: 100 out of 218 unhosted rentals would no longer be allowed.
Altogether, that’s hundreds of properties. Many of these homes are popular with travelers looking for unique coastal stays, but they also compete with long-term housing for locals.
California Coastal Commission Approves Vacation Rental Regulations in Monterey County – Video
Why the Rules Are Being Pushed
Monterey County officials argue that the growth of vacation rentals is making life harder for full-time residents. Common complaints include:
- Noise from parties and gatherings
- Overflowing trash in small neighborhoods
- Cars taking up limited parking spaces
- Fewer homes are available for people who want to live there full-time
There’s also the issue of Big Sur’s fragile economy. Local hotels and inns have already been struggling because landslides have blocked parts of Highway 1, cutting off tourists. County leaders believe limiting vacation rentals will help balance the needs of residents, businesses, and visitors.
Backlash From Rental Owners
Not everyone is on board. The Monterey County Vacation Rental Alliance, a group that represents property owners, argues the plan is too extreme. They say banning so many rentals will hurt families who depend on rental income and make the coast less accessible for visitors. Many tourists can’t afford high-priced hotels, so short-term rentals give them more affordable options.
The proposal isn’t official yet. It still needs final approval from the Monterey County Board of Supervisors. If they sign off, the changes could reshape tourism in Big Sur, Carmel, and the surrounding areas for years to come.
