Santa Barbara City Council approves rental regulations and rent stabilization

The Santa Barbara City Council has passed two significant pieces of legislation aimed at managing the city's housing market: new regulations for short-term rentals and a rent-stabilization ordinance.

The short-term rental rules, approved unanimously, impose limits on where vacation rentals can operate. In inland Santa Barbara, rentals will generally be restricted to specific commercial areas and are prohibited in residential zones or high-fire areas. Owners are typically limited to one rental, and a two-night minimum stay has been established alongside quiet hours from 10 p.m. to 7 a.m. The regulations also prohibit rentals in certain housing types, such as accessory dwelling units and some affordable housing, to prioritize long-term residency.

Separately, the council passed a rent-stabilization ordinance in a 4-3 vote. A last-minute proposal to modify the rent increase limits—specifically a motion to cap increases at 3% for only the first year—failed to gain support. Council members noted that the attempt to introduce substantial changes during the final adoption process was problematic for governance, despite the ordinance's ultimate passage.