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Short-term Rental Misconceptions STRs are not permitted, therefore illegal in Santa Ana, (FALSE) This concept of "permissive zoning," the doctrine that "zoning ordinances prohibit any use they do not permit" has been rejected by more than one court. Le Keen v. City of Manhattan Beach, 77 Cal. App. 5th 142, 150 (2022), review denied aune 29, 2022). Plus, State in People v. Venice Suites, LLC, 71 Cal. App. 5th 715, 733 (2021). The court noting that "[a] ppl ication of the permissive zoning scheme in the manner urged by the People would lead to an absurd result where neither short-term nor long-term occupancies would be allowed an apartment House, apartment hotel, or residential building because a length of occupancy is 'not expressed."' 2 Short-term rentals increase local rental rates. (FALSE) Many city governments are interested in whether short-term rentals disproportionately affect more vulnerable segments of their population — for example minorities or low-income residents. But *our work has found that the increase in rents in New York City is more concentrated among high -income, educated, white renters and not the population city governments are, in general, concerned with. This is because short-term rentals tend to be concentrated in touristy, centrally located areas where higher -income residents live. *What Does Banning Short -Term Rentals Really Accomplish Here's a look at some U.S. cities that have restricted short-term rentals (STRs) but didn't see the hoped -far drop in long-term rental prices: • New York City: Despite cutting STRs by 80% in 2023, rental prices barely budged. Median rent slightly dropped, but average rents rose year over year, showing minimal impact. • San Francisco: Tight restrictions and mandatory host registration significantly reduced STR listings. However, rental prices remained among the nation's highest, suggesting broader economic factors play a larger role. • Santa Monica, CA: With one of the strictest STR bans, Santa Monica only permits home -sharing with the host present. Long-term rental prices stayed high, indicating that the restrictions didn't improve affordability. • Telluride, CO: The town briefly banned STRs, but after facing economic pushback, it switched to charging STR operators a fee instead. The initial ban didn't lower rents and negatively affected local businesses. 3 STRs are responsible for the rising housing costs. (FALSE) There are many factors contributing to local housing affordability challenges, from growing income inequality, to decades of exclusionary zoning, and even changing location preferences post -pandemic, including the rise of remote working from home. Where many experts agree is that the primary driver of the affordability crisis is chronic underproduction of housing. In June 2024, Santa Ana home prices were up 11.6% compared to last year. The Santa Ana housing market is expected to see continued growth in the coming years, fueled by several key factors like; Economic Expansion (A strong economy with healthy job growth), Interest Rates (low interest rates stimulate market activity and Demand Maintenance (desirable lifestyle with amenities, proximity to major cultural attractions). Prepare by SASTRA for the City of Santa Ana 8