Deloitte report points to increased STR demand amid LA28

US: A Deloitte report  has found critical gaps in available housing for 2028’s Olympic Games in Los Angeles, suggesting those could be assuaged by increasing short-term rental capacity.

In two and a half years, Los Angeles will host the Olympic Games — but tourist demand is expected to exceed that which L.A. and Orange County can currently provide, leaving up to 320,000 with limited lodging options on 13 out of 19 competition days.

Current paid accommodations, encompassing hotels and STRs, can house around 400,000 each night. The six most popular nights each could rise above 100,000 tourists redirected to alternative housing.

Deloitte’s report claims that increasing the short-term rental population through easing regulations could add space for up to 282,000 tourists, covering 88 per cent of the gap. Deloitte expects an increase of that size to add 5,300 jobs, $120 million in tax revenue and inject an overall $488 million into the local economy.

However, that would require doubling the current capacity. The report also provides estimated figures for raising tourist capacity in Los Angeles and Orange County by 40 and 20 per cent.

If bumped by 40 per cent, 168,000 could be accommodated; this would cover 46 per cent of the gap, add $257 million in local spending, add 2,800 jobs and generate $68 million in tax revenue. If bumped by 20 per cent, 79,000 could be accommodated; this would cover 24 per cent of the gap, add $136 million in local spending, add 1,480 jobs and generate $33 million in tax revenue.

“Excitement for the LA28 Olympics is already high and now the numbers are clear: demand for lodging could exceed capacity, and tourists need more options for a place to stay,” Airbnb public policy leader Justin Wesson said. “Airbnb short-term rentals are a simple and sustainable solution to not only accommodate more visitors in the L.A. area, but also generate millions in direct economic activity that would benefit the city, counties, and local communities.”

“Reasonable short-term rental rules are the practical solution to expand LA’s accommodation capacity without the cost of new construction. If we can accommodate more visitors locally, we can amplify the benefits of visitor spending for communities and small businesses across LA,” Valley Industry and Commerce Association president Stuart Waldman said. 

Highlights:

• A Deloitte report commissioned by Airbnb projects a potential lodging shortfall of up to 320,000 visitors on 13 of 19 competition days during the 2028 Los Angeles Olympic Games.
• The report estimates that doubling Los Angeles and Orange County’s current short-term rental capacity could close 88 per cent of this gap, accommodating 282,000 additional tourists and generating $488 million in local economic activity.
• Alternative scenarios presented include a 40 per cent capacity increase, which would cover 46 per cent of the gap, and a 20 per cent increase, covering 24 per cent of projected demand.
• Proponents cited in the report argue that regulatory easing for short-term rentals offers a lower-cost alternative to new hotel construction and would generate tax revenue and jobs ahead of the Games.