For the past few weeks, canvassers have been flooding L.A. neighborhoods with fliers and signage advertising a proposed solution to the city’s $1 billion budget deficit.
The so-called “Save Our Services” coalition argues that permitting more short-term rentals in the city will generate tens of millions in annual local tax revenue from tourists.
Members of the coalition include chambers of commerce, labor unions and community groups, according to the campaign’s website. Missing from that literature is the name of the company organizing and funding the campaign: Airbnb.
The company, which operates the world’s largest platform for short-term rentals, confirmed its involvement to LAist Wednesday, after it was first reported by the L.A. Times.
“It’s pretty simple: new tax revenue from tourists can give Los Angeles much-needed funding for city services and union jobs that are at risk,” said Justin Wesson, Airbnb’s senior public policy manager and son of former L.A. City Councilman Herb Wesson, in a statement.
L.A.’s current home-sharing ordinance, approved in 2019, allows people to rent out only their primary residences as short-term rentals. The Airbnb-backed coalition’s “vacation rental revenue plan” calls for changing the law to allow second homes to be rented as well.
It’s something the company has been pushing for years — unsuccessfully.
Airbnb pushes ‘Save Our Services’ campaign for more short-term rentals in LA
Coalition members say it’s an important step as thousands of tourists are expected to visit the city for the 2026 World Cup, 2027 Super Bowl and 2028 Olympics. They estimate the plan would generate $41 million in additional transient occupancy tax revenue and $38 million in additional sales tax revenue from tourists.
“At the end of the day, we do have to address the deficit,” said Robert Sausedo, president of Community Build, a South L.A.-based community organization and coalition partner. “But it's not always about cutting. Sometimes, it's finding new ways to pay for things, and I think this is the best solution that I've seen in a while.”
Some L.A. City Council members are pushing back against the campaign and Airbnb’s involvement.
“ I think it's clear they have motivation for their purposes,” Councilmember Monica Rodriguez told LAist. “But allowing people to use a secondary property would incentivize the further privatization of our very limited and precious housing stock at a time when we're already facing an affordability crisis.”
Critics push back
Critics say the campaign is a ruse to deregulate short-term rentals. They also question the coalition’s revenue estimates.
“This plan does not have merit as a way of raising funds,” said Noah Suarez-Sikes, an organizer with Better Neighbors LA, a coalition of tenant advocates, housing nonprofits and a local hotel workers union.
“In fact, the economic damage this could cause, especially with the Olympics coming up, with affordable housing on the line, is potentially catastrophic,” he said.
More housing being used as short-term rentals mean fewer units available to permanent renters, driving up prices. A 2022 McGill University study found that short-term rentals in L.A. have increased overall rents by $810 a year for the average renter.
Suarez-Sikes said the city is losing revenue by not enforcing its existing rules for short-term rentals. Many Airbnb hosts are not paying the transient occupancy tax, he said. If the city enforced applicable fines against these bad actors, it could generate hundreds of millions a year, he said.
The L.A. Housing Department estimated last year that 7,500, or about 60% of the city’s short-term rentals in apartment buildings, are illegal, according to an agency memo.
Some city leaders have been pushing for more enforcement of the city’s home-sharing ordinance.
Last month, L.A. City Attorney Hydee Feldstein Soto filed a lawsuit against Airbnb in the wake of the wildfires. The lawsuit alleges that Airbnb illegally increased prices of between 2,000 and 3,000 properties following the January wildfires and misrepresented its listings with fake hosts and addresses.
“It’s unconscionable that Airbnb permitted prices to be jacked up on thousands of rental properties at a time when so many people lost so much and needed a place to sleep," Feldstein Soto said in a statement.
The company partnered with L.A. County to offer free emergency housing to evacuees. To date, Airbnb claims it has temporarily housed nearly 24,000 people affected by the fires. The company said it also invested nearly $30 million in local fire relief and recovery efforts.
Who else is in the coalition?
An Airbnb representative told LAist that the campaign has knocked on more than 200,000 doors and made contact with more than 50,000 people so far.
The company claims that 70% of the people contacted by canvassers support the effort. But it’s unclear how many of those people were familiar with the proposal or Airbnb’s involvement when they spoke with canvassers.
“The flyers don't have Airbnb’s name on it, but this is a policy they've been pushing for years,” said Councilmember Hugo Soto-Martinez. “I think residents will see through the deception.”
Airbnb representatives declined to say how much money the company has contributed to the Save Our Services campaign or further clarify its role as coordinator.
The labor groups involved in the Save Our Services coalition include the International Brotherhood of Teamsters, the International Union of Painters and Allied Trades, the California IATSE Council, and the International Brotherhood of Electrical Workers Local 18.
Most of the unions did not respond to LAist’s questions about their involvement. The Teamsters provided LAist a statement through Airbnb.
“Los Angeles cannot cut its way out of a $1 billion budget deficit at the expense of Angelenos,” said Eric Tate, executive secretary treasurer with Teamsters Joint Council 42. “We strongly urge the Los Angeles leaders to pass the Save Our Services proposal now.”
Other coalition members include pro-business groups like the Central City Association of Los Angeles, the Valley Industry and Commerce Association, the Crenshaw Chamber of Commerce, the California Hispanic Chambers of Commerce and the CalAsian Chambers of Commerce.
“By allowing a limited number of people to rent their second home to travelers, we can generate millions in new tourism revenue dedicated for the city’s long-term recovery — paid for by tourists, not taxpayers,” said Stuart Waldman, president of Valley Industry Commerce Association.
Several community organizations have also signed on to the effort, including Community Build and the Brotherhood Crusade, both based in South L.A.
Community Build, founded by Congresswoman Maxine Waters after the 1992 L.A. unrest, is focused mostly on gang intervention and workforce development programs today.
Leaders from Community Build acknowledged that the proposal will line Airbnb’s pockets, but they argue it would also help L.A. residents.
“ I don't see this as something that's only going to benefit Airbnb,” said Robert Sausedo. “This is the best of two worlds: government and business coming together for a solution.”
Airbnb representatives did not respond to LAist’s questions about why the company did not previously disclose its involvement in the campaign.
On social media yesterday, L.A. City Councilman Hugo Soto-Martinez posed a question to the home sharing giant: “If it’s good policy, why hide from it @airbnb?”
To move its effort forward, the campaign will need support from the L.A. City Council. It’s unclear whether any council members currently support Airbnb’s proposal.
“ It's not my impression that this is something that would have legs with a majority of my colleagues,” said Monica Rodriguez. “I don’t see it. However, I'm often surprised by how easily people can be swayed when there's other interests involved.”
