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Originally Posted by Papa_lecki

Palm Springs reigned in Air bnb (STR).
They are still allowed, but they are limiting the number in any neighboorhood. Some people are seeing a 33% decrease in property value.
If interest rates drop, owners can’t refinance due to loan to value ratios.

“Palm Springs home values are in a free-fall after the city began cracking down on short-term rental permits, according to the Los Angeles Times.”

https://ktla.com/news/california/pal...own-on-airbnb/

Cracking down on rentals is a good thing. Rentals cause instability in a market like your last lines show. Leave STRs to the hotel groups, not to residential neighborhoods. Values are falling everywhere anyway. What one thinks is a cause, another thinks as a problem. Myself, I believe price drops are just a correction to pre pandemic trends, as it has to go that way sooner or later. Not many can say they love an unstable residential neighborhood with STRs on both sides of them. It’s because most prefer to live in a residential atmosphere with less chaos.