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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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ELI5: why is having airbnb’s a bad thing? ( not local, not in the loop )
It applies to anywhere. The problem isn’t one situation. It’s this same story, repeated thousands of times in every city across the globe.
Bobby wants to live in a house. Monthly rent prices are usually around $1,000 per month in his home town.
Joe wants to make money by renting out a house on AirBnb. Hotel prices are usually around $200 per night in the same location. If Joe rents out his house for just 10 nights a month, he can make $2,000. This easily covers Joe’s expenses and puts the extra cash in his bank account. If he rents it out for 25 nights, he’s putting away a lot of cash.
When houses are up for sale, Bobby can only spend a similar cost as his rent. Joe has been watching his bank account climb and is ready to spend a lot on another house to put on AirBnb. Joe can make a profit even if the house is double the price.
Bobby’s landlord sees housing prices rise. Decides to either (1) increase Bobby’s rent to $2,000 - which he can’t afford or (2) sell the house to someone like Joe for a major markup.
Bobby has to move in with roommates and will never be able to afford to buy a home when competing against all the Joes out there.
Got it, thanks!
Raises rent prices, overall cost of living and takes apartments from long term rental market.
Thanks!