I used to live in Pacific Grove in the mid-80s. A lot has changed since then, and at the same time it is still a delightfully “normal” place to visit. The neighborhoods and downtown on Lighthouse Avenue are charming. It is bounded by Ocean View Avenue with a rugged and beautiful coastline. I prefer to stay here over any other part of the Monterey Peninsula.
In the past I have stayed at motels and hotels. This visit I am with my daughter and her family so we rented a home. We looked on VRBO and Airbnb and we found the 2 bedroom 2 bath home we are renting on Airbnb. It has been more comfortable than 2 hotel rooms and about the same price.
- We can cook meals.
- There is a living room where Calvin can make play with his toys (and make a mess).
- We can play dominoes at the dining table and laugh without worrying about waking up a sleeping toddler.
There is a debate raging about the phenomenon of vacation rentals and how it is changing the neighborhoods and city finances of Pacific Grove (PG). My daughter saw a sign for Measure M. I did some research and learned that Monterey and Carmel have tight restrictions on the vacation rental market and PG does not. Also residents have been complaining about over-concentrations of homes for short-term rent for over 3 years and the city council had not taken any action. I had noticed that many of the motels and hotels had vacancy signs, which is uncommon in my memory. There is usually some kind of conference going on at Asilomar or tourism that keeps them near full.
We were walking on Asilomar Beach with Calvin and a dog and then another 2 year old and her dad joined us. We did the usual back and forth about the kids and then he asked where we were staying. We admitted that we were staying in a home nearby. He shared his frustration with the vacation rental situation. “They aren’t paying the taxes they owe the city.” He also alluded to the partying and recently moving from Nashville, which was a party town, he was hoping to escape that scene. Sarah and I weren’t quite sure what his point was as we haven’t witnessed anything but deer roaming the streets and senior citizens power walking in the neighborhood. I mentioned that my neighbor has dedicated his investment property (across the street from me in Midtown Sacramento) for AirBnB rental. People are coming and going during the week and weekends. They typically empty a lot of “bottles” into the recycling, but to be fair, they have yet to disturb anyone.
As a consumer of temporary housing when I travel, I appreciate the range of choice available today. At the same time I am also sympathetic to the challenges it creates, especially in housing markets where rentals are already scarce and prices are rising. I also remember the signs posted in Venice, Italy protesting Airbnb and the perceived effect that it was pricing “real Venetians” out of Venice.
As we walked back to the car, Sarah and I discussed our conversation with the local who is going to vote to limit vacation rentals to the coastal zone (1 mile from coastline) and the business district. He wasn’t unfriendly, just frustrated. We wondered if we shouldn’t have rented the home we are staying in, and decided that we were unaware of the controversy, we are in the coastal zone, and it isn’t illegal. We’d like to come every year, so we’ll have to think through our options next year. Also, does Airbnb pay the local transient occupancy tax or expect hosts to do so?
When I lived here in the 80s, the prices were climbing well beyond the ability of people mostly working service jobs to afford to buy. Then the problem was that some of the supply was taken off the market by people who could afford to buy a second or third home on the Peninsula. They only spent a few weeks a year in Carmel or Pebble Beach and this had a ripple effect in the entire housing market. The Airbnb phenomenon makes it possible for upper middle class people to buy a vacation home and afford it thanks to additional rents.
It is complicated. When Airbnb started I thought it was restricted to host-occupied residences. It was both the attraction and the turn-off. I prefer a hotel to a Bed & Breakfast because I prefer to be left alone. Now it has become a platform for entrepreneurs with enough cash to invest in a dedicated vacation property. I use ride sharing services and appreciate the greater availability of cars where I am, the app’s easy way to pay, but it has not been so great for taxis. A lot of these apps disrupt the existing order of things and create new opportunities for consumers and the industrious. Hopefully Pacific Grove will find the right balance.