Could the use of Airbnb increase home prices and rental rates?
A new, not-yet-published working paper suggests the popular home-sharing service might do just that. The researchers looked at rents and home prices in the 100 largest metro areas in the U.S. between 2012 and 2016. They found that a 10% increase in Airbnb listings leads to a 0.39% increase in rents and a 0.64% increase in house prices.
“That may sound minuscule, but between 2012 and 2016, rents rose by about 2.2% annually [on average in the 100 areas], so a 0.39% increase in that context isn’t very small at all,” says Edward Kung, an assistant professor of economics at the University of California Los Angeles and one of the study’s authors. The same is true for home prices, which rose by an average of about 4.8% annually in the 100 areas, he adds.
4 comments:
I also think it may have accelerated the use of hotels as homeless shelters. After all, now that hotels no longer have to care about their reputations among paying guests, they can go right ahead and accept all the homeless people that the City wants to provide.
Agreed; if tourists can find cheaper on AirBNB, they will, leaving the hotels looking for "customers". The City and the homeless fill the void. Also, tourists now know that the borough hotels put up the homeless, so why would they stay there? I wouldn't stay in a homeless hotel if I were traveling in Europe.
Why should AirBNB be allowed to stick whoever can pay into apartment buildings and co-ops unvetted? That's not what the regular tenants signed up for, particularly co-op owners. This would bring a bunch of destructive idiots into proximity of people who care about their homes, because there are no penalties for the idiots, they don't live there.
We could always build more and higher to meet demand.
Nah, that would be silly. Let's crack down on people renting out their spare rooms for extra money; that'll surely lower costs enough that our children can afford to live in the neighborhoods they grew up in!
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