By Robert Haugh
With the Mission City hosting Super Bowl LX this Sunday, Santa Clara’s short-term rental market is running like a hurry-up offense.
Prices are up. Inventory is thin. And homeowners near the stadium are suddenly sitting on prime end-zone real estate.
As first reported by George Avalos of the Bay Area News Group, the average monthly rent in Santa Clara jumped to $4,935 as of Jan. 30, a 28.8 percent increase in just one month, according to RentHop. It’s the largest one-month rent spike the city has seen in at least 10 years. Wow.
The surge is being driven by short-term demand tied to the Super Bowl. Fans, corporate groups, and event organizers want to be near Santa Clara.
By late January, about 71 percent of short-term rentals in the Santa Clara-San Jose-Palo Alto market were already booked, according to AirDNA.
For those still available, the average asking price for Super Bowl Eve (Feb. 7) is about $229 a night — nearly 29 percent higher than last year. Double wow.
San Francisco is averaging about $323 a night for Feb. 7 as Super Bowl parties and corporate events pile up.
Oakland is the budget option at roughly $200 a night, with slower price growth but rising demand.
At the top end of the market, Some people are willing to offer $250,000 for a one-week rental, while others could pay as much as $500,000, according to Joe Piazza of Los Gatos-based Piazza Advantage Real Estate. Triple wow.
Kickoff is days away. Inventory is disappearing. And in Santa Clara’s rental market, the points are already on the board.
Hi Robert, thanks for bringing up the topic of short term rental housing in the City of Santa Clara, as the city does not take this issue and its consequences very seriously.
Over the past year, I have contacted several departments, the city council, city manager, and city attorney to find out the City’s position regarding very short term rentals of housing (Airbnb’s specifically), and the collective answer was very little is done to monitor or enforce the rules on the book, and that these rentals landlords operate as they please and flaunt the rules. (The mayor was the only one who responded and the response was heartfelt and sincere, and I greatly appreciated her time and response.) There is one particular Airbnb in our neighborhood that is rented out almost each day and yet has nobody living there as the hose. Per the city codes, a house with no host is to be rented out a maximum of 90 days per years. This house is rented out closer to 300 days a year with no host. It has degraded our neighborhood and the landlord has let the exterior go, totally disrespecting the surrounding neighbors and devaluing their homes. 911 calls have been made for parties and disturbances, cars all over the neighborhood along with trash. The city has done nothing about this (as I have asked for follow ups that never came). I was told by the city there is NO SYSTEM in place within the city to track Airbnb housing, who is the property owner, what taxes and licenses are due, and no way to audit past rentals and the fees owed to the city. I was told that a system “is being developed” to be implemented in the future, but as of now there is nothing in place. It is unbelievable that nothing has been put in place. Think of the huge windfall the city will miss out on during the Superbowl and World Cup games when rental income is underreported with no way to verify.
Also, if the city is worried about providing permanent housing to residents, please ban all short term Airbnb rentals so this is available as housing, not as a short term rental with income going to an out of state landlord, as is in my neighborhood (House was bought a few years ago and almost immediately made into an Airbnb rental, $500 plus dollars a day. The city officials should get short term renters for a day, week, etc into the surrounding motels and hotels where they belong, and the proper fees, taxes, etc can be fully realized. As it is now, the out of state, short term rental owners, are getting the full financial benefit that current Santa Clara residents are subsidizing and while their own neighborhoods deteriorating!!
To the City of Santa Clara City Council, City Attorney, and City Manager, please, until you have a plan in place to track short term rentals, and, have fulfilled our state sanctioned required housing numbers, ELIMINATE THE AIRBNB, VRBO, ETC SHORT TERM RENTALS NOW. MAKE THE OUT OF STATE LANDLORDS FOLLOW THE RULES. AUDIT THE LANDLORDS AND AIRBNB’S TO SEE HOW MUCH MONEY THE CITY HAS BEEN POTENTIALLY CHEATED OUT OF!!!
I’m surprised the NFL hasn’t figured out a way to get a cut of the rentals. They’ve nailed pretty-well everything else. I figured it out. But I want my cut for telling them.
Wow good news some Santa Clara little guys are making money off SBLX.