Santa Barbara Weighs Vacancy Tax on Empty Homes

Voters will decide on a residential and commercial vacancy tax in November 2028, as officials seek to ease a local housing shortage.

Updated on Nov. 3, 2026 in Commercial

Santa Barbara Weighs Vacancy Tax on Empty Homes

Live Poll

Would you support a vacancy tax on empty second homes in your community?

Santa Barbara City Council voted to place a residential and commercial vacancy tax on the November 2028 ballot. The measure follows concerns that empty homes, including a Montecito mansion left vacant by Prince Harry and Meghan Markle after they moved back to the UK, are reducing housing available to local residents.

Why it matters

Santa Barbara's leaders say the tax is meant to address a shortage of places for local people to live in Santa Barbara. Councilwoman Kristen Sneddon hopes it will encourage owners of second or third homes to occupy them or rent them out.

The Sussexes' Montecito property is valued at £11 million, and Oprah Winfrey's nearby mansion, The Promised Land, is valued at £40 million. Details of how the vacancy tax would be calculated and enforced have not yet been released.

The players

Kristen Sneddon

Kristen Sneddon is a Democratic councilwoman in Santa Barbara who is running for Mayor of Santa Barbara County and hopes the tax encourages homeowners to live in or rent out their properties.

Prince Harry and Meghan Markle

Prince Harry and Meghan Markle are the Duke and Duchess of Sussex, who own an £11 million mansion in Montecito and have also held property in Portugal.

Oprah Winfrey

Oprah Winfrey is the media executive and philanthropist who owns a £40 million mansion in Montecito called The Promised Land.

The details

The Santa Barbara City Council voted to ask voters to approve a vacancy tax covering residential and commercial properties at the November 2028 election. Vacancy taxes have previously been explored in San Francisco and San Diego, and the Montecito-area communities of Mission Canyon, Toro Canyon, Summerland and Carpinteria have reportedly followed suit.

Earlier this year: Prince Harry and Meghan Markle moved back to the UK, leaving their Montecito mansion empty.
November 2028: Voters are scheduled to decide the vacancy tax ballot measure.
Christmas: The Sussexes may return to California to spend time with Meghan's mother.

Market Landscape

Vacancy taxes have been explored in San Francisco and San Diego, and Santa Barbara's proposal extends that approach to the coastal Santa Barbara region. Its potential extension to unincorporated Montecito would bring the policy into an area dominated by high-value second homes.

Owners of vacant residential or commercial property in Santa Barbara could face a new tax if voters approve the measure in November 2028. Residents seeking housing may benefit if empty homes are occupied or rented out.

The takeaway

Vacancy taxes aim to turn underused homes into housing for local residents, a goal Santa Barbara voters will weigh in on at the November 2028 election. Property owners considering second homes in the area should watch how the measure's details develop.