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Real Estate

Monterey County Coastal Commission Approves New Vacation Rental Ordinances

December 11, 2025
Monterey County coastline with ocean waves and cliffs.
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The California Coastal Commission has taken a significant step towards regulating vacation rentals along the Monterey County coast. Following years of deliberation, new ordinances have been approved that aim to limit the proliferation of short-term rentals, particularly in sensitive coastal areas like Big Sur and the Carmel Highlands. The move seeks to balance tourism with neighborhood preservation and housing availability.

Key Takeaways

  • Commercial vacation rentals will be banned in Big Sur and the Carmel Highlands.
  • Short-term rentals will be capped at 4% of single-family homes in other coastal areas.
  • The regulations target "unhosted" rentals, excluding those where the owner lives on-site or rents less than three times a year.
  • The ordinances aim to address issues like neighborhood disruption and housing shortages.

New Regulations Take Shape

The California Coastal Commission has voted in favor of new regulations designed to curb the impact of vacation rentals on Monterey County’s coastline. This decision marks a significant shift, as the county previously had no specific regulations for these types of accommodations. The new rules, developed over nearly a decade, aim to address concerns raised by residents and county officials regarding the social and economic impacts of commercial vacation rentals.

Addressing Neighborhood Concerns

Monterey County Housing and Community Development director Craig Spencer highlighted that commercial vacation rentals have had outsized impacts on neighborhoods, citing issues such as increased trash, noise complaints, and parking problems. "We cannot continue to be in a position where we don’t have any rules and regulations," Spencer stated, emphasizing the need for a regulatory framework.

Specific Restrictions and Bans

The approved ordinances will limit short-term commercial rentals to no more than 4% of single-family homes in designated coastal areas. Importantly, these caps will not apply to homes where the owner resides or to properties rented out fewer than three times annually. Furthermore, commercial vacation rentals will be completely prohibited in Big Sur and the Carmel Highlands. These areas were specifically targeted due to their unique natural character and resource limitations.

Impact on Rental Availability

Collectively, these regulations are expected to limit the number of "unhosted" short-term rentals—those rented out more than three times a year—to 334 along the Monterey County coastal zone. Currently, the area has approximately 400 such rentals. In Big Sur alone, all 37 commercial vacation rentals will be eliminated.

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Diverse Perspectives Emerge

The proposed regulations sparked considerable debate, with over two dozen individuals and organizations speaking at the commission meeting. Supporters argued that vacation rentals disrupt communities, harm the environment, and reduce the availability of affordable housing. Conversely, opponents, including vacation rental owners, contended that these rentals provide a vital income stream for homeowners and offer more affordable lodging options for visitors, particularly families.

Path Forward

The California Coastal Commission voted 6-2 in favor of the regulations. The proposal will now return to the Monterey County Board of Supervisors for final approval, anticipated in October. If adopted, these new rules are set to go into effect next year, signaling a new era for vacation rentals along the Monterey coast.

Sources

  • Commission takes initial step to tap brakes on vacation rentals along Monterey coast, Local News Matters.
  • Santa Cruz County supervisors advance new limits on vacation rentals, Santa Cruz Local.
  • Monterey County passes ordinances for vacation rentals, KSBW.
  • Commission votes in favor of limiting vacation rentals along Monterey Co. coast, KRON4.
  • California Coastal Commission approves vacation rental regulations in Monterey County, KSBW.

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