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SAN DIEGO — A new short-term rental ordinance has been finalized in the city of San Diego for the first time since the issue hit the market roughly a decade ago.

The city will now cut roughly half of the current whole home vacation rental stock, holding the total number of vacation rentals to 1% of the San Diego housing market. No more than 5,400 whole house units will be permitted to be used as short-term vacation rental, cutting the STVs by half. Permits will be granted through a lottery system, and there will be quite a few disappointed vacation rental hosts.

Housing advocates say the vacation rental issue has pushed up prices and rentals for years, causing long-term renters and buyers to struggle to find a place to call home. 

Proponents of the new ordinance from San Diego City Council say thousands of new units of housing will come back on to the market, making it easier for long-term renters and home buyers to get into the very competitive market.

Residents also say they are looking forward to quieter neighborhoods with less parties. There will be 16 new enforcement officers hired to police the new system starting in the fall. 

“It will give us more housing, it will give us more quality of life in our neighborhoods that have these rentals,” Councilmember Jennifer Campbell said.