Airbnb is widely known all over the world for being a cheaper way to travel. The cost of an Airbnb is usually much cheaper than the average hotel, and it gives people the option to rent out their houses and apartments for a few nights to earn some extra money. People renting the houses and apartments save money due to the low cost and often, amenities included. It seems like a win win, right? Well not exactly. Airbnb is shown to have a significant effect on the real estate market.
All over the world, regulations are added to those wanting to rent out their homes on Airbnb. For example, in Paris, you can only rent out your home with Airbnb for a maximum amount of 120 nights a year. This is happening in many cities all over the world. City regulations are putting limits on the amount of time you can have your home sublet. Because many people use this as a means to pay their mortgage, this is decreasing the amount of people purchasing condos or houses. Airbnb recently announced a partnership with Century 21 to help with the issues that were caused. In some cases, it is possible for persons to request Airbnb-friendly leases because of this partnership. However, they would then lose a cut of their profits to Airbnb and Century 21.
In a study conducted by a group at McGill University, they concluded that Airbnb hosts have caused about 7,000 to 13,500 apartments from New York City’s long-term rental market. This causes rent to greatly increase because there are less properties for people rent. It also causes a significant housing shortage. Airbnb is having a significant effect on housing especially in New York City. There are many more cities around the United States that are affected as well. This study by the group at McGill University just adds to the growing controversy of the effects of Airbnb.
Airbnb is an up and coming company started in the United States that has spread all over the world. There are still many debates and controversies surrounding the company and some kinks that still need to be worked through. However, the facts are that the company is having a significant impact on the real estate market today. Whether it is a good impact or a negative impact is still up for debate.