LA County was Airbnb’s 2018 top destination statewide for short-term renters
But a new LA City Council ordinance regulating the home-sharing giant could cut into 2019 revenue
Airbnb CEO Brian Chesky (Credit: Getty Images and Flickr)
Airbnb hosts in Los Angeles County took in $613 million in revenue last year from 2.7 million guests, making it the company’s most popular destination statewide. But the strong numbers may be tough to duplicate in the new year, as a new measure by the L.A. City Council that regulates the home-sharing giant will take effect this summer.
L.A. County’s roughly 27,000 hosts also took in an average of about $11,400 each for the year, according to statistics provided by Airbnb, and first reported by the L.A. Daily News.
Statewide last year, hosts earned $2 billion in revenue from 9 million guests and paid around $115 million in taxes, according to Airbnb.
Airbnb hosts made three times as much cash than hosts in San Diego, which earned the No. 2 spot. San Francisco, where Airbnb is based, ranked third in California in revenue.
But those L.A. hosts may take a hit this year. In December, the L.A. City Council finally approved a home-sharing ordinance, nearly four years after regulations were proposed. The ordinance legalizes rentals of primary residences and establishes a “soft cap” that allows hosts to rent up to 120 days per year. It goes into effect in July.
Airbnb argued the ordinance would hurt hosts and contends that renting on the platform is a critical source of income for hosts, who use the money to pay for their mortgages and living expenses.
Santa Monica’s far stricter home-sharing ordinance caused Airbnb listings to fall 17 percent during the one-year period ending in July.
L.A. hosts have paid $100 million in taxes since August 2016, according to its figures. [LA Daily News] — Dennis Lynch
Source: The Real Deal Los Angeles