Airbnb now available in 220+ countries/regions and 100,000+ cities/towns - Updates and Discussion

[Hamartia Antidote]

About us - Airbnb Newsroom

Airbnb Press Room is a home for news and announcements from Airbnb, a global community of hosts and travelers.

news.airbnb.com

 

[Hamartia Antidote]

What is Airbnb & How Does It Work?​

 

[Developereo]

Research: When Airbnb Listings in a City Increase, So Do Rent Prices

Airbnb has listings for millions of properties around the world, but what does its popularity mean for the cities it operates in? According to a new study, it leads to an increase in rents. The authors examined zip code–level data on rent prices and demographic data across the U.S. Controlling...

hbr.org

a 1% increase in Airbnb listings is causally associated with a 0.018% increase in rental rates and a 0.026% increase in house prices. While these effects may seem very small, consider that Airbnb’s year-over-year average growth is about 44%.

This means that, in aggregate, the growth in home-sharing through Airbnb contributes to about one-fifth of the average annual increase in U.S. rents and about one-seventh of the average annual increase in U.S. housing prices

 

[Hamartia Antidote]

Research: When Airbnb Listings in a City Increase, So Do Rent Prices

Airbnb has listings for millions of properties around the world, but what does its popularity mean for the cities it operates in? According to a new study, it leads to an increase in rents. The authors examined zip code–level data on rent prices and demographic data across the U.S. Controlling...

hbr.org

a 1% increase in Airbnb listings is causally associated with a 0.018% increase in rental rates and a 0.026% increase in house prices. While these effects may seem very small, consider that Airbnb’s year-over-year average growth is about 44%.

This means that, in aggregate, the growth in home-sharing through Airbnb contributes to about one-fifth of the average annual increase in U.S. rents and about one-seventh of the average annual increase in U.S. housing prices

It obviously is logical that every unit removed from the long term rental pool is simply going to lessen the number of available units leading to more competition and thus higher rental rates.

However you can also claim that there must either be a hotel room shortage or serious hotel price gouging occurring in these areas if Airbnb's are becoming so popular that it is actually affecting local rental rates.

For instance this past July I wanted to book a hotel room in the Big Island of Hawaii for 12 days and the room rates were approaching $400/night for anything half-decent. Meanwhile you could get an Airbnb full-condo unit with a pool for $150/night that was more than passable.

That adds up quick.

If anything you can claim Airbnb increases tourism.

 

[Developereo]

It obviously is logical that every unit removed from the long term rental pool is simply going to lessen the number of available units leading to more competition and thus higher rental rates.

However you can also claim that there must either be a hotel room shortage or serious hotel price gouging occurring in these areas if Airbnb's are becoming so popular that it is actually affecting local rental rates.

For instance this past July I wanted to book a hotel room in the Big Island of Hawaii for 12 days and the room rates were approaching $400/night for anything half-decent. Meanwhile you could get an Airbnb full-condo unit with a pool for $150/night that was more than passable.

That adds up quick.

If anything you can claim Airbnb increases tourism.

The problem is that the difference between hotel rates and residential rental rates is likely to be highest in the poorest regions. The bigger the gap, the more attractive it becomes for rich investors to buy up property for Airbnb use. This pushes up both house prices and rentals for locals who can't compete with rich investors.

I don't know if there have been studies whether Airbnb improves tourism or simply chases it.

 

[Hamartia Antidote]

The problem is that the difference between hotel rates and residential rental rates is likely to be highest in the poorest regions.

Well are you saying tourists like to visit poor areas? I'm assuming that if the amount of units converted to Airbnb locations is affecting the local rental markets it must be in a place with a high tourism demand.

Now of course yes this could easily be ANY major US metro area where the housing market is insane due to high demand across the entire income spectrum. So for these areas Airbnb is definitely exacerbating the problem.

However you could also argue these same cities may have exorbitant hotel rates which is scaring off tourism. I'm pretty sure the main reason people are risking staying at an Airbnb is because of sticker shock from the local hotel prices.

I don't know if there have been studies whether Airbnb improves tourism or simply chases it.

Well the people who rent from Airbnb are mainly tourists and in order for these places to survive they need renters so they must be adding to the tourism. I haven't heard about hotels going out of business yet due to their market being stolen by Airbnb in a similar manner as taxi services had with Uber.

If cities want to take back housing from Airbnb they should maybe authorize more hotel rooms or analyze why the room costs are so high.

Oddly enough the sanctuary city thing is exacerbating things even more. For instance because Boston is a sanctuary city and they don't want to house people in their own high priced hotels downtown they are moving families with children to suburban hotels and saying the town should feed and educate the children for FREE. In angry response towns have announced moratoriums on handing out permits for the construction/remodeling/refurbishing of..you guessed it...hotels. Guess who must be making crazy money from all this...you guessed it...Airbnb.

Thank you Liberals for ruining things...

Edit:
Well it looks like Massachusetts politicians are now doing a 180.

November 22, 2024

State to end use of hotels as shelters

As demand for shelter beds surged between 2022 and 2023, the state struck lease deals to use dozens of hotels and motels across Massachusetts. Currently 56 hotels are being used as shelters.

www.wbur.org

State to end use of hotels as shelters​

The state will stop using hotels and motels as emergency shelters, a costly practice that became more common in recent years, as thousands of migrant families seek shelter in Massachusetts [<- No, they are being bused by Texas to Boston..not Massachusetts]

The hotels will be phased out of the Emergency Assistance shelter program over the next two years, Gov. Maura Healey's office announced Friday.

Healey is also introducing plans to further limit shelter stays, from the current nine months to six months. And if approved by lawmakers, families considered more capable of supporting themselves could even face 30-day shelter limits.

As demand for shelter beds surged between 2022 and 2023, the state struck lease deals to use dozens of hotels and motels across Massachusetts. Currently 56 hotels are being used as shelters, officials said.

The new limits are aimed at sharply reducing costs for the Emergency Assistance shelter system. The price tag has ballooned to a nearly $1.1 billion annually — nearly three times what the program cost prior to the surge in demand. The price increase is due largely to the expanded use of hotels.

"There just isn't another billion dollars," said Lt. Gov. Kim Driscoll. "These have been one-time resources. They don't exist going forward."

Driscoll, who headed a recent state commission examining the sustainability of shelters, said the hope is to return to funding the system at under $400 million.

She said the state has come a long way over the past year.

“Not that long ago we had families in hospitals and sleeping in ER rooms — we had the airports full of folks," Driscoll said.

That surge in demand for shelter beds prompted the increased use of hotels as shelter sites. But Driscoll said hotels are not designed to be shelters, and it's time for the practice to conclude.

"We just can't keep doing what we're doing — these expensive hotels," she said. "And frankly, it's not good to be in a hotel, a 10'x 12' room for a year plus."

 

[Developereo]

Well are you saying tourists like to visit poor areas? I'm assuming that if the amount of units converted to Airbnb locations is affecting the local rental markets it must be in a place with a high tourism demand.

The term 'poor' is always relative. Locals simply cannot compete with the high returns on tourist rentals.

Young Aussies abandon Sydney, Melbourne in major ‘societal shift’

Millennials are leading the charge out of pricey capital cities and into regional areas. Here's where they are flocking to.

au.finance.yahoo.com

Now of course yes this could easily be ANY major US metro area where the housing market is insane due to high demand across the entire income spectrum. So for these areas Airbnb is definitely exacerbating the problem.

However you could also argue these same cities may have exorbitant hotel rates which is scaring off tourism. I'm pretty sure the main reason people are risking staying at an Airbnb is because of sticker shock from the local hotel prices.

Whatever the reason might be, the end result is that locals, especially young locals, are being driven out.

If cities want to take back housing from Airbnb they should maybe authorize more hotel rooms or analyze why the room costs are so high.

I suspect the first pushback would come from homeowners. While Airbnb investors would push up the house prices in a neighborhood, most other residents would not like their neighborhood turned into a hostel or hotel area. Even apartments lower the value of homes in a neighborhood and Airbnb is essentially the worst of apartments and hotels combined: every few days, you see some random new people wandering around the neighborhood.

I suspect the rise in house prices, driven by Airbnb investors and the housing market in general, has placated many homeowners for now but the mood could turn if the market heads south.

 

[Alter_Ego]

AirBNB prices arent that cheap, considering the lower level of service. But i guessit depends on time and location.

 

[Hamartia Antidote]

The term 'poor' is always relative. Locals simply cannot compete with the high returns on tourist rentals.

True. Plus Airbnb is the money collector so the landlords know they are guaranteed to be paid one way our another.

I suspect the first pushback would come from homeowners. While Airbnb investors would push up the house prices in a neighborhood, most other residents would not like their neighborhood turned into a hostel or hotel area. Even apartments lower the value of homes in a neighborhood and Airbnb is essentially the worst of apartments and hotels combined: every few days, you see some random new people wandering around the neighborhood.

Well in US cities this has been going on for a lot longer than Airbnb has been around. I call it the "Friends syndrome" (after the tv show) where instead of landlords renting to families with children for $X they know if they can jam 3 or 4 unrelated people into a unit they can actually get $X + $3Y. I have seen this first hand in my parents Boston neighborhood. There are no families anymore. There's no kids at all during Halloween. You are correct that Airbnb just makes it even worse.

I suspect the rise in house prices, driven by Airbnb investors and the housing market in general, has placated many homeowners for now but the mood could turn if the market heads south.

Every day the ratio of landlords to homeowners increases as landlords overpay for any housing that comes on the market. Then hold onto it forever.

 

[Developereo]

Every day the ratio of landlords to homeowners increases as landlords overpay for any housing that comes on the market. Then hold onto it forever.

I don't remember US tax laws but I think the deduction on rental property losses, i.e. expenses (mortgage interest, etc.) minus rental income, is severely limited for regular tax payers in the US (not sure). However, it wouldn't surprise me one bit if there are loopholes involving trusts and whatnot to get around these limits.

Australia has no such limits so rich investors can write off literally hundreds of thousands of dollars of mortgage interest on their investment properties.

 

[Hamartia Antidote]

I don't remember US tax laws but I think the deduction on rental property losses, i.e. expenses (mortgage interest, etc.) minus rental income, is severely limited for regular tax payers in the US (not sure). However, it wouldn't surprise me one bit if there are loopholes involving trusts and whatnot to get around these limits.

Australia has no such limits so rich investors can write off literally hundreds of thousands of dollars of mortgage interest on their investment properties.

June 17, 2024

Empty Desks: The Enrollment Crisis in Boston Public Schools

K-2 enrollment in Boston's public schools is way down, pointing to future enrollment declines across later grades.

www.bostonindicators.org

Empty Desks: The Enrollment Crisis in Boston Public Schools​

A few generations ago, Boston was a much more vibrant city for families, with more than twice as many kids enrolled in our public schools. Yet even as the city’s population increased by between 80,000 and 140,000 people from 1980 (depending on your choice of estimates for Boston’s current population), its school-aged population of 5-to-17-year-olds declined by almost 28,000.

As we can see the "Friends Syndrome" is alive and well in Boston.

Meanwhile in the suburbs right on its edges there has been a wave of new "mega" school buildings. It's crazy considering their population.










I've been in this one and it is gargantuan for a town of less than 30,000 people. You could fit the entire town in just a corner of this building.



...and plenty of other towns

 

[Hamartia Antidote]

Airbnb Is Quietly Cutting Fees for Hosts Who Bring Their Own Guests - Startup Fortune

Airbnb is piloting direct booking links that cut host fees from 15.5% to 6-10% when hosts bring their own guests, per a Skift report.

startupfortune.com

Airbnb Is Quietly Cutting Fees for Hosts Who Bring Their Own Guests​

Airbnb is quietly testing direct booking links that cut its host service fee from 15.5% to as low as 6% when a host brings their own guest. The booking still runs entirely on Airbnb's platform, but the pilot signals the company's take rate is more negotiable than it has ever admitted.


The checkout stays with Airbnb. The payment runs through Airbnb. AirCover still applies to eligible bookings. The host gets a better fee only because Airbnb didn't do the expensive part of the job, which is finding the traveler in the first place.