There goes the home values there: into the toilet.
It is complicated. A large part of South Lake is unincorporated or in Nevada and will not be affected. Plus there will be lawsuits and an injunction. Plus the ordinance phase in takes three years . During that time there will be an injunction and another referendum. My guess is a compromise will come. This is is not isolated. Carmel, Pacific Grove, Santa Monica, Sonoma County and other areas have VHR bans. Hasn’t had much effect on property values in those places. Banning VHRs is a worldwide issue due to the huge tourist explosion, especially in Europe.
Plus the new ordinance allows locals to rent out one month a year. Could offset the loss of the other VHRs.
Renting out rooms on Airbnb is still allowed also.
Last week, the South Lake Tahoe Property Owners Group filed a lawsuit seeking an emergency injunction to block implementation of the measure. The group said it infringes on the constitutional rights of property owners and would wreak havoc with out-of-town families who plan to spend the holidays at the mountain resort.
Who is this judge? Care to weigh in on rent control and just cause eviction? 
El Dorado county is a republican county and this judge must be a conservative judge. It’s just a temporary restraining order, not a final judgment.
“The Sacramento Bee reported that El Dorado County Superior Court Judge Thomas A. Smith issued a temporary restraining order that prevents enforcement of the voter-approved measure for 30 days.”
Good time to buy? 
Does it stop time-shares? That might become the way to go.
Whenever I mention the VHR ban to anyone outside of Tahoe they think it is insane. Smart to go to an outside the area judge. A lot of locals want to incorporate Tahoe into nearby Alpine county. Placerville is a different world.
I don’t think it’s insane. If I had to deal with 80% of my neighbors being people who don’t live there, I’d be frustrated too.
The reality is tourists have been coming here since the 40s and most VHRS are rented less than 100 days a year. A few are bad actors are annoying but there are $1000 fines for noise, too many cars or people and garbage. Locals overreacted. Passed a flawed law that will be in court.
A friend of mine is in contract right outside of the tourism exclusion / residential zone (the area where VHR will be banned in 2021) with the hope that outside of the area will be more in demand. What’s your thoughts @Elt1? Or do you expect more discount in the exclusion zone next year from those who cannot rent VHR anymore?
I think the exclusion zone is 95% of the city. So my guess is your friend is probably buying in an unincorporated area. Basically in the City limits, VHRs will only be allowed in commercial areas on Highway 50, Skirun Blvd and by the casinos. If your friend is buying in the commercial area where the VHRs are allowed, I would be concerned. The house or condo is probably surrounded by motels and lot of activity and noise.
It is a fluid situation. There is a lawsuit to end the ban, and many in the Keys want vacation rentals.
Covid19 has created a huge demand for full time residents that can work from home. I think this will offset any negative price trends from the VHR ban.
There are less than 1400 VHRs and probably only half are active. And very few are on the market currently
In fact current active sfhs in all areas and categories are only 100 compared to an historical average of 250.
Prices are going up across the board. Basically there are no decent houses minimum 3/2 over 1500sf for less than $450k.
Keys area is nice 
I think so, he is buying in a bit south of Meyers. He is paying 550K+ to almost 2000 sqft - fully renovated. What’s disadvantages of being in unincorporated area?
Meyers is a huge negative. South is Christmas Valley even worse. Too far from town, no amenities and when there is tourist traffic you are stuck there. I value it at a 20% discount to the city or Montgomery Estates. There is a reason why Meyers is cheap. Plus poor cell reception. 20 minutes from town and the beaches, even when there is no traffic. A crappy grocery store a couple of meh restaurants and a lumber yard, a nine hole golf course. Not much there. Good if you ski Kirkwood or Sierra.
The county areas may still ban vacation rentals. This is a worldwide trend.