Airbnbust? Short-term rental prices plummet in Palm Springs, and some owners are worried.


Property manager Megan Rodriguez, seen tidying up around a short-term rental home in Palm Springs, said changes in the city's market for vacation rentals make it more challenging to own or manage properties.

In the 12 years Francine McDougall has been renting out her Palm Springs, California, home on Airbnb and Vrbo, she’s never had much trouble finding people to stay there.

Until now.

For the first time ever, McDougall says she is not on track to max out the 36 annual short-term vacation rental stays the city allows. That’s despite dropping her typical rates by about a third to spur bookings.

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