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The End of Airbnb in New York
(www.wired.com)
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this post was submitted on 08 Sep 2023
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The rent for regular apartments has basically doubled in the past couple years. You see studios go for $3000/mo, and 1 bedrooms for $4500+ quite often. I really hope this will have a helpful effect on lowering for the people who already live here, who can't make ends meet because of absurd rental prices and hikes lately. There needs to be more housing and reasonable prices for people who live here. Compared to the median income here (and not the mean, because it's not representative to count the billionaires), it's literally not affordable for the people who grew up here and started their lives here, to afford to have a roof over their head. That's why you see shit like 5 unrelated adults in a 1 bedroom apartment together, or a big extended family of multiple generations, partners, etc., all living under the same roof. Nobody can afford anything better here.
It is a serious crisis in many places throughout the world. Especially considering the income stagnation. I have lived in many cities and have heard this cry across multiple continents, from coast to coast, and at most income levels (except the ultra wealthy).
What I’m hoping becomes more popular are ways to make the short term rentals not as profitable. I really like the idea what other cities are doing by limiting the number of days they can rent it out.
Sure, rent it out for 45 days a year and get $10k total revenue and try to scrape out a profit. Or rent out the unit as your primary residence for the entire year for a similar cost.
It’s not absolutely perfect, but it will greatly reduce those willing to buy places to use as an investment for short term rentals. And that should put negative pressure on housing prices, while also opening up more units for primary residence housing.
Generally speaking, housing costs don't decrease without a major economic event. Positive economic circumstances that raise housing costs set the benchmark, and negative events reset those.
Isn't this quite a major event? More empty homes -> more places to choose from -> more competition -> lower prices
Huge. The short term rental housing boom is unlike almost anything we’ve seen before. Estimates put short term rentals as about 20% of the global real estate market.
If that demand drops rapidly, it will mark a major shift. Tons of buyers and capital will be wiped off the table.
I agree with the usual perspective that housing prices almost always rise over time. But this is an unprecedented event in scale, and if reversed, it will have unprecedented ramifications.
This doesn't need to immediately lower housing costs to have a positive impact.
Hypothetical numbers... If housing was going to go up 5% in the next year and this change causes that to go down to a 1% increase, it will have made things better. Of course, we'd all like to just go straight to lowered housing costs. But individual changes can still do good and bring us towards that goal without strictly accomplishing it.