Los Angeles’ 2026 mayoral race is heating up after City Councilmember Nithya Raman accused Mayor Karen Bass of cutting a “secret Airbnb deal” that would benefit corporate interests while worsening the city’s housing affordability crisis.
The clash centers on a proposal buried inside Bass’ sprawling 2026-27 budget plan that would temporarily loosen Los Angeles’ short-term rental rules ahead of major international events like the 2026 FIFA World Cup and the 2028 Olympics. Under current law, Angelenos can generally only use their primary residence as a short-term rental through platforms such as Airbnb. The new proposal would allow some non-primary residences — including investment properties and apartments — to legally operate as vacation rentals under a regulated system.
Raman sharply criticized the idea during a press conference and later expanded on her accusations in a lengthy thread on X, where she framed the proposal as an example of “pay-to-play politics.”
“Hours after I held a press conference exposing Mayor Bass’s secret deal to allow rental homes to be turned into vacation rentals, filings were published showing that Airbnb is spending big on a PAC to get her reelected,” Raman wrote. “This is what pay-to-play politics looks like.”
She argued that expanding short-term rentals would remove housing units from the long-term market and ultimately drive rents even higher in a city already struggling with affordability and homelessness.
“Here’s how pay-to-play works: A politician delivers policy favors to a corporation or special interest. The corporation spends money to keep the politician in power,” Raman wrote. “But the everyday people of Los Angeles lose.”
Raman repeatedly referred to the proposal as a “secret Airbnb deal,” pointing to campaign spending tied to political action committees supporting Bass’ reelection. She claimed Airbnb was helping fund a PAC expected to spend roughly $1 million backing the mayor.
“I am not for sale. My campaign takes no corporate money,” Raman said, contrasting her fundraising approach with Bass’. “It is powered by thousands of Angelenos who have donated, volunteered, and talked to their friends about our vision for an affordable city that works.”
Bass’ campaign forcefully rejected the allegations. Campaign spokesperson Alex Stack dismissed Raman’s criticism as politically motivated and accused her of pushing conspiracy theories after weak polling and debate performances.
“This is obviously false — another conspiracy theory from a failing candidate who is grasping at straws after her debate disasters and polling showing she won’t make the runoff,” Stack said.
Bass’ allies argue the proposal is a practical attempt to prepare Los Angeles for an expected tourism boom tied to the Olympics and World Cup. Supporters say the city needs additional lodging options and that expanding short-term rentals could generate significant tax revenue without raising taxes on residents.
Airbnb also pushed back against Raman’s claims and pointed to a newly released economic study from Beacon Economics. According to the report, expanding short-term rentals could generate between $70 million and $80 million annually in tax revenue within three years. The study estimated Los Angeles has already lost roughly $439 million in transient occupancy tax revenue since 2020 because of current restrictions.
The report further argued that short-term rentals account for less than 1% of the city’s housing stock and are concentrated primarily in wealthier neighborhoods, suggesting broader housing shortages — not Airbnb listings — are the primary driver of rising rents.
The debate reflects a broader divide in Los Angeles politics over how to balance tourism, housing affordability, and economic development ahead of the city’s high-profile global events. Raman has attempted to position herself as a progressive challenger focused on housing protections and campaign finance reform, while Bass and her supporters argue the city must maximize economic opportunities tied to the Olympics and World Cup.
