Airbnb, Short-Term Rentals and the Future of Housing

The book explores how Airbnb and short-term rentals impact housing and communities, highlighting the disruptive effects on urban centers with stressed housing markets. It argues that Airbnb's business model and control over data contribute to rising rents, changing neighborhood milieus, and the institutionalization of short-term rentals. The local response to these impacts varies across countries and cities, with varying levels of restriction and costly externalities.

Format: Paperback / softback
Length: 150 pages
Publication date: 04 November 2020
Publisher: Taylor & Francis Ltd

The impact of Airbnb and short-term rentals on housing and communities is a complex and multifaceted issue that has garnered significant attention in recent years. In this essay, we will explore the origins and success of Airbnb in the context of the 2008 financial crisis, and examine the struggles of local authorities to protect their housing and neighborhoods from the increasing professionalization and commercialization of Airbnb.

The book argues that the most disruptive impact of Airbnb and short-term rentals has been on housing and neighborhoods in urban centers where housing markets are stressed. Despite its claims to be a platform that empowers homeowners and provides affordable accommodations, Airbnb has revealed itself as platform capitalism, incentivizing speculation in residential housing. At the heart of this trajectory is Airbnb's business model and control over access to data.

In a first narrative, the authors discuss how Airbnb has institutionalized short-term rentals, consequently removing long-term rentals, contributing to rising rents and changing neighborhood milieus as visitors replace long-term residents. This has led to concerns about the displacement of low-income families and the erosion of community character.

In a second narrative, the authors trace the transformation of short-term rentals into a multibillion-dollar hybrid real estate sector promoting a variety of flexible tenure models. While these models provide more options for owners and investors, they have the potential to undermine housing security and exacerbate housing inequality. For example, the rise of Airbnb has led to concerns about the loss of affordable housing stock, as investors prioritize short-term rentals over long-term rentals.

While the overall effects of Airbnb and short-term rentals have been similar across countries and cities, depending on housing systems, local response has varied from less restrictive in Australia to increasingly restrictive in the United States and most restrictive in Germany. Although Airbnb has made some concessions, it has not given any city the data needed to efficiently enforce regulations, making for costly and time-consuming processes.

One of the key challenges facing local authorities is the lack of clear regulations and guidelines around short-term rentals. This has led to a patchwork of policies and regulations across different cities, making it difficult for homeowners and investors to navigate the landscape. Additionally, the rise of Airbnb has created a new class of "professional hosts" who operate multiple properties and can exploit loopholes in the regulations to maximize profits.

To address these challenges, some cities have taken steps to regulate short-term rentals. For example, San Francisco has implemented a host registration program that requires hosts to register their properties and pay a fee. This has helped to increase transparency and accountability in the short-term rental market, and has led to a reduction in illegal rentals.

However, the effectiveness of these regulations has been mixed. In some cases, the regulations have been too restrictive, limiting the ability of homeowners to rent out their properties on a short-term basis. In other cases, the regulations have been ineffective in preventing illegal rentals or addressing concerns about displacement.

In conclusion, the impact of Airbnb and short-term rentals on housing and communities is a complex and multifaceted issue that requires a comprehensive and coordinated response. While Airbnb has provided a new source of income for homeowners and investors, it has also raised concerns about the displacement of low-income families, the erosion of community character, and the potential for housing inequality. Local authorities must work to balance the needs of homeowners and investors with the needs of their communities to ensure that the benefits of short-term rentals are realized while minimizing the negative impacts.

Weight: 254g
Dimension: 156 x 235 x 14 (mm)
ISBN-13: 9780367234188