The basic tenets of Supply and Demand would certainly support the concept that transferring homes and apartments into Short Term Rentals would cause remaining housing prices to increase. To be fair, Airbnb responds: "There are a number of complex factors driving today's housing affordability crisis — from growing income inequality, to decades of exclusionary zoning, and even changing location preferences post-pandemic, including the rise of remote working from home — but many experts agree the primary driver of the affordability crisis is chronic underproduction of housing, not short-term rentals. Unfortunately, short-term rentals, which in most cities make up a tiny portion of local housing stock, have become a convenient but misguided scapegoat for a housing crisis that started long before the founding of Airbnb."
Rebuttal accepted...but then, there is what has happened in Irvine CA since that community banned STRs: Within two years of the ban, long-term rents decreased significantly; roughly 60,000 rental units in the city saw a 3% rent decrease, on average.
It's a fascinating read in the ongoing conversation of how to balance the needs of all sides.
Image Credit: Tristen Rouse / St. Louis Public Radio
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