We're going to put the community tab to use with a Q&A. If you have a question for me about this story, any story, Beme in general, best beer spots in NY, or whatever...leave them here or tweet me @loufoglia. I'll answer a few and post it to community tab in the next few days.....
Louis Foglia thank you so much for taking a good and important story and talking about the pros and cons of both sides. Keep it in the middle beme, we need centrist news!
Love this one, love the format, dig the new logo, love the idea of different takes on the logo for different eras. hope u feel my love ray beams. i think im some kind of journalism snob too, so i think my vote counts extra.
I had an unconventional use for AirBnB that can be really helpful for moving to the city. I had the resume to get a job that would definitely pay my bills once getting to NYC, but because of where I was coming from I didn't have the proof of income for anyone to be willing to rent to me, especially without proof of employment, and I couldn't get employed without being there for interviews that I couldn't afford to fly back and forth for. Solution: Ship all my stuff in shipping container (POD or similar service) that allows a storage period, fly to the city with checked bags & 1 month's supplies, check into a 1-month stay at an air-bnb, use first couple weeks to get job offer & begin training, next couple weeks to see apartments & lock down a place, with the option to airbnb for longer until you find a spot convenient for your new job. The trick was having enough leftover money so when you approach the landlord with proof of employment but no income history at the right level, you can offer a couple months advanced rent then live frugally until the first paychecks hit. If you downsize enough, you may not even need the storage/shipping container. I could imagine doing away with AirBnB but having a different service offer such short term housing solutions, could come complete with services for people new to the city in effectively an apartment building/hotel designed for this purpose. Affordable, pay up front, short term furnished living near transportation hubs for new residents seeking longterm housing.
In Thessaloniki, Greece airbnb has almost destroyed every neighborhood, especially near beaches or tourist attractions. A lot of people are struggling to find a place to rent by airbnb. Airbnb should be gone. This company cares only about money.
I work in Amsterdam (commute). Parts of the inner city are depopulating at an alarming rate; every vacant apartment is being bought for tourist accomodation. They're trying to curb the tide by restricting hosts to 60 days a year, but that just means that one apartment has several hosts that "live" there. What doesn't help is that because of its free-for-all red-light, drug-friendly image, Amsterdam attracts a certain kind of tourist: mostly Australian backpackers and English stag parties. No improvement to the atmosphere in the city.
Hai, fellow Dutchie here, I live close to Amsterdam (5 mins) and I have people with loud rattling suitcases coming past my window at 4 in the morning, or if it's tourist-season (before covid) veeery drunk British guys that are crawling back home, barfing their guts out in our flowerfield and screaming "Lads, lads" and peeing all over -themselves and- the street. I like tourists, but mainly the calm, friendly kind, like German families and old British couples. They respect the city and my nightsleep.
I live in Venice (Italy). You can imagine in such a city that can live off only on tourism and locals are very few (year after year moving away) what Airbnb did... Prices are crazy!
This is exactly what has happened in Madrid. The center of the city has been bought out by airbnb owners pushing out the people who rent there, so they move out a little bit further out and the rent rises in less expensive areas accompanied by gentrification. An apartment that cost 700€ about 4 years ago is now 1100€ ¡NEARLY DOUBLE! It's crazy. I'm sure there's other factors, but the rise of "professionalized" AirBnB in Spain has been colossal.
Yeah - and on top of the price increase, tourists change the character of a city. It's not good. Cities are becoming playgrounds for the wealthy.... Hopefully governments can regulate Airbnb more effectively and try to reverse that trend...
All those tourists bring a fu*kload of money to your city and your income increases if you have any skills. Quit complaining. Other towns would love to have some tourists. PS: I'll come to Madrid and stay in an airbnb and be loud on the streets. Joder! ;)
I'm sorry but the center of Madrid has never been cheap to live in, maybe just a bunch of neighbourhoods which were full of bars and loud people until late night. The moment they became hipster-wannabe-nests is when they started to become expensive af. Airbnb surely has an impact in many cities and specially some specific neighbourhoods, but big cities like Madrid have never been "cheap" and seeing the recent financial status regarding real estate in Spain it shouldn't come as a surprise that prices are shooting up like crazy now. As said, Airbnb may be one of the several factors playing a role in that situation, but it's for sure neither the worst nor the most important one.
Homes or dwellings that are being completely rented not just one room but the entire dwelling should be taxed identically to a hotel if they're allowing people to stay less than 30 days. Zoning laws everything should be the same. If this doesn't happen it's going to ruin the rental market like it's doing. I'm in the New England area right now and you can't find a rental property for more than a couple days.
Airbnb do make hosts pay a Hotel Tax. We also have to pay taxes on Capital Gains from Airbnb. You can't avoid it and it's built into Airbnb to send you the forms each year.
Airbnb is making my hometown, Thessaloniki in Greece, impossible to live in. There are no apartments or houses available for people except students and tourists anymore! I was searching for 2 months to find a place. The prices have tripled. I finally found a place to live in, but it was ruined, and the landlady told me that's the only reason she rents it cheap, and that I should never expect her to fix anything. My mother rents the same place for 10 years now and this summer the landlord demanded a 25% rise in the rent she pays him, "because of airbnb" he told her. She refused to pay him of course, but she doesn't know if her contract will be renewed after it expires.
It's like this almost all over Europe. Glad the Netherlands made laws to keep the cities clean from too many AirBNB's, but it's a major problem in other countries. Too bad most people don't care about that. They just want to 'travel' for cheap
Except for the home owner who actually is able to make some decent cash this way! It rocks if you are lucky enough to be in that position. The housekeepers in my town are making $20 and hour thanks to Air Bnb so it's not always a bad scene.
Countries who's main business is tourism are feeling this more than the US. Ireland gets about 8-10 million visitors a year which is more than double the population, and they only visit cities which make up about 1.5m people of the 4.7m in Ireland. It's driving rent THROUGH THE ROOF and we now have one of the worst housing crises in Europe.
This is not about renting out a single home, it is about landlords deciding to rent out multiple apartments that were once residential apartments. Those apartments are zones as residential apartments and not hotel rooms. Also, there are people that go around and sign multiple leases and then turnaround and rent them as hotels. This practice also causes pressure on the housing market.
Colin Yapp Everything will come to equilibrium. The VRBO market is a small fraction of the rental market. I could make a long reply using many of the same arguments for why minimum wage doesn’t make sense. But suffice it to say, we disagree on the amount of regulation that should be imposed on property owners.
I do not believe so because most of the apartments that are used for AIRBNB are modest apartments that are being pulled from highly sought after tourist areas, most notably Manhattan, Brooklyn and San Francisco. These areas already have had major issues with affordable housing and the removal of these units make it far worse. I know of a few buildings in Harlem that have had nearly 50% of their units shifted from apartments to short term rentals. Saying that there will be equilibrium is just another way of saying let the markets do as they please.
Everything will come to equilibrium??? even the father of capitalism free market Adam Smith says that regulations are important to maintain a good economy. Equilibrium is when society wakes up and decide to regulate markets and stop monopolies.
Very balanced reporting on this story, in an age where we see so much division I am always grateful to see reporting that is done right, balanced and informed by empirical evidence.
Airbnb and uber got so rich so quick by bypassing regulation that hotels and taxi companies have to obey. Companies like Airbnb need to be regulated because greedy ppl will use their nice concept of evil. My friend dated a guy in the past who does that buy apartment across a city and only give it as Airbnb. For him who was born into a wealthy family, he has the money to do that. While regular joes cannot do that. We need to regulate Airbnb and uber if not we going to ruin the ppl who live in those cities.
How are they evil? The reason these companies exist is because their services benefit everyone in the transactions. People rent out their house/chaffeur people around because they want money, and people get driven around/a place to stay for a few days. What's the harm in that? The taxi industry is dying because nearly everyone prefers Uber. Taxi drivers have given me terrible experienced in the past, being rude, not knowing where to go, etc., But Uber drivers are nearly always amazing. Same sort of story of Airbnb. Is there some collateral damage? Maybe a small amount, but the same thing has happened with every new industry, be it the model T hurting horse related industry to the internet killing the physical music industry. If hotels and taxis can't adapt to something better and/or cheaper, they can and should die.
Sure regular Joes can do that. Why not? You buy a house to live in, and reserve a room for Airbnb or build one in your backyard, or buy land and put an airstream on it.. Or lock up your personal items in one room and lease out the rest of your house on Airbnb while you go travel europe or something. Anyone CAN do it that has at least some decent credit to buy a home or condo or open land. There are tons of open land all over America and the world to use to create a small Airbnb paradise. You only look at problems rather than realize solutions and potential.
@@daemonsilver3304 Sure, blame the generation tied down by debt- the one that can't afford to buy property like their parents. Having to work free internships to get a job in a year. Sure, blame millennials- not this race to the bottom capitalism.
Airbnb is in a much better position than uber due to their supply. The reformation of commerce driven by the sharing economy is good as commerce is defined by new players shaking up the establishment.
It’s your home... why shouldn’t you be allowed to do what you want with it.. the housing market is at record highs right now of course rent will be high. What happens when it crashes again and we put these regulations in place? It’s good that hotels have competition finally. Let them figure out a way to compete.
Casey lawton Have you even seen the video? The only point it makes is that what causes harm to cities is the unregulated professionalization caused by airbnb with entrepreneurs buying entire buildings to put them on airbnb
The problem are people buying places to rent them out on Air BnB. Also, some people rent out the apartments they lease(even though they shouldn't and can be kicked out if the apartment building management decides to do something about it). It's also a problem for the neighbors of people that frequently rent out their whole until in an apartment building. I support people that are renting out temporarily(less than 2 months a year) or those that are renting out a room in their home while they are there.
So what? This will force demand thus growth elsewhere in cities. Of course, our governments don't like to see the short-term "disruptions" so they just regulate the crap out of things until there's no competition. They make up some BS like rents are rising solely because of Airbnb while ignoring the fact that rents are rising mostly due to over-regulation in the residential and commercial development industry.
Guess what in Amsterdam. Houses rented with state help for those who need it are used as airBnB's. Three days of rent makes it break even. Many stay for a couple of days with friends or parents and there you have it. Free living with help from the state and even profit while housing prices rise for everyone. Insane. Destroys the market for people who earn (a little bit) more than the minimum.
Anything can be characterized as being the fault of the person meant to prevent it from happening. When you dont pay your taxes is it the fault of the government for not forcing you? And all the people who pay their fair share cause their morals compel them to, are they fools?
That's why I look for owner-occupied types of appartment when I book AirBnB. Yes, they are not as streamlined and/or "clean" as hotels, but at least, they're not disguised "cheap" hotels.
I absolutely despise this terrible company! I live in a smallish tourist town in South Africa and house and rental prices have skyrocketed since airbnb started becoming popular the last few years. It's very difficult for our municipality to regulate all the listed properties and we're running into real housing problems in our town.
You despise it because you're not getting anything out of it. Figure out a way to use it rather than sulking and you will learn to love it. It has way more benefits than negatives. If it's too bad in your city, you can move. Otherwise you do like people in other cities, you scrounge and build credit to buy your own property. You should never depend on rental economy to live forever. It is a convenience to rent, not a long term strategy. You throw money away every month by renting. Everything should be considered an investment. You have to mature and plan your future. Buy property and build your own Tiny Home if need be. UA-cam is full of lessons for how to do it. Use Airbnb once you've built something you own and lease out to other people who choose to live in temporary lodging. All land will keep going up in value. It's a better investment today than it ever was in the past. Population grows.. cities are growing. People need to live on land and it's going to keep increasing. It's not Airbnb's fault. It opens more value for owning rather than renting and gives owners much more options.
Price ceilings in NY controlled rents have helped create this opportunity for Airbnb, it's another example of innovation in answer to draconian regulations and rent control laws.
In Budapest where people earn around 500 Euros (roughly between 380-1200) a rent for 1-bedroom apartment costs 480-500 Euro... but in the best areas it can cost 700 Euros as well.. on average! (Not much I can admit but when you earn 500 Euros its quite high.) 5 years ago or so an apartment costed 250-300 Euros. Why do we cater to tourists over actual residents of a city?! I see, its good money for some. But still.. 27 years is the average age of a hungarian when they move out from home.
I did it once and found it distasteful. I was traveling with a friend who was a little cheap. I prefer upscale, convenient, classy and comfortable CLEAN places to stay like the St Regis or Ritz. Who knows if that person has a communicable disease? What if they have a camera spying on you ? ... It didn’t feel safe or private.... It was creepy and uncomfortable. The whole point of vacation is going somewhere nice and spoiling yourself. Not staying in some crappy strangers house. Not sure why it’s so popular....
We've got a bit of a crisis here in the last few years. Too many people living here and not enough homes. Home owners have been more interested in making money with the use of AirBNB than renting out long term, like you said. This has caused a lot of fuzz between the government and AirBNB, whereas the government requires information on all whom use AirBNB so they can see how much these home owners make because these owners aren't so eager to pay taxes from their incomes.
There has been a lot of discussion re this issue and its impact upon homelessness in my city, Hobart, Tasmania. Although Airbnb has had positive impact upon our economy by enabling our tourism sector to grow more rapidly, it has coupled with a supply shortage on new homes to create a very untenable situation for local renters who are being priced out of the market.
In Denver there are regulations that ensure that you actually live in the house and it's not just a 100% rental place. You have to get a license and display the number on your airbnb listing. They then browse the site looking for any listing with no license number and fine them. Seem to be working well.
Wow, that’s the most balanced view on this issue I have ever seen. Great job. I live in NYC, and your right that it is a passionate issue. I think something is being missed here. If the argument by some is that Airbnb is taking apartments off the market and therefore driving up costs, and this is actually a small amount of units, then ask yourself “who is taking the most units off the market?” Answer: govt housing programs like “affordable housing, public housing, rent subsidies, rent stabilization, and rent control.” Run the numbers on the turnover in these units and you will see that it’s a fraction of the broader rental market. The one taking the most units off the rental market are local govts. Im no expert but that’s my view from the sidewalk.
Air bnb is great in all the ways you said, but it needs REGULATION. For example, no tolerance for rowdy guests, home safety regulations, and most importantly NO COMMERCIALIZED AIR BNB!!
That makes no sense? Commercialized is making money. You dont want anyone to make money? Even home owners that buy a home and sell it 20 years later make money on that home. Thats Commercializing!
Excellent job presenting this story. I am not a millennial and use AirBnB 98% of the time I travel for work or personal vacation. Out of the 15 times I have used it, I have been satisfied 100% of the time and have saved a lot of money. It has allowed me to increase my profit by decreasing my travel expenses and given me access to parts fo the world that I otherwise would not have been able to afford such as Lithuania, Italy, Ireland, Switzerland, and all over the US. As a user I am obviously a fan. I could tell you that in one instance in Italy, it was obvious that this AirBnB I rented was definitely a professional operation. The claim of increased rents is new to me and that can certainly be a concern.
Gotta say, I use air bnb when I travel, but after living next door to two of them for the last two years I'm reconsidering. They're constantly filled with bachelor and bachelorette parties and they're super obnoxious and disruptive.
Looking at it from the neighbors' point of view. I would not want the constant in and out of strangers in the houses on my street. I want to raise my children without being afraid to encounter someone new every 2 days. Also, there are ordinances in place that prohibit transient housing. Cities need to enforce the laws that are already on the books. My tiny town, in the most beautiful place in America (according to the viewers on GMA, 2011) has been consumed by investors who have been buying up every available house they can find to the detriment of our young families who have no place to live. It's really awful.
Iris Jones if you think “strangers” are out there to get your children...your children are going to grow up mentally and psychologically ill prepared to face the dynamic world. You already assume travelers are liabilities instead of the possibility that they are assets to the community.
Kikyoass - total BS. I don't want to get "acquainted" with every Tom, Dick, and Harry that traipses around in the neighborhood. Looks to me like you don't know what 'neighborhood' means. Let's just leave it at that
I agree with you and don’t listen to those degenerates. They value money over communities. They probably would sell their family if it meant more money in their pockets.
I totally see what you're saying and agree to a certain extent. On the other hand, you live in a city and there are already millions of strangers all around your family daily. Plus, in the case of privately owned homes (not the ones with multiple listings), how do you regulate it without infringing on private property rights?
I live in Crestone, CO. It is an airbnb saturated, touristy community. I survive by cleaning the airbnbs, and I am homeless because I cannot afford the over-inflated rent prices. The irony is this tiny mountain community has several spiritual communities, primarily Buddhist. Yet their greed keeps me and other laborers sleeping in our cars or in tents. And a greater irony is - I do not live off of govt social programs, yet many of them do! I work my ass off, and they live off of airbnb income and/or ridiculous priced rentals. I've been here five years, and I see it only getting worse. I do not want to be homeless anymore.
AirBnB needs to be regulated but it does have a lot of pros like making it easier to travel if you're too poor for hotels. But def needs to be regulated otherwise there'd be no homes left for locals.
So here is a solution which I think makes a lot of sense for everyone. Traverse City, MI is holding a hearing on June 5th. The gist of their proposal is this, the proposed tourist houses need to be hosted, meaning a homeowner is in residence, greets the guests, and spends the night. This will prevent turning neighborhoods into transient housing. 'This assures neighbors that an owner is available and responsible for maintaining usage compatible with neighborhood values...'
In Amsterdam the government collaborated with Airbnb. Landlords are now allowed to rent their flats maximum sixty days a year. It's at least a step towards this Airbnb insanity.
A similar thing is happening with Uber in Australia. People are buying or leasing a number of cars, and charging drivers more than $1000 a month to use them, or the owner get everything and pays the driver a small wage.
Airbnb needs more strict controls. Big share of Room Renters are in reality common thieves. They rent out rooms of "their" appartment which they themselves are renting. The real Landlords usually are never being told of these schemes. I know many people who are seriously "normal" but can''t seem to understand the evil behind earning money over something you do not OWN!
I'm a host and certainly I'm biased. However I really think long term vs short term rental are facing the same issue essentially. The most common claim I have is don't want to see frequent new comers as they are potentially problematic. But don't you have "that neighbor" that the landlord happens to rent to without much investigation of his background? And you have to withstand that for 12-24 months. My neighbor is happier than before, it's his words. Previous house owner has more than 10 people living in it, don't speak English, constantly blocking my neighbors driveway. I inform my neighbors well about what I do and welcome them to supervise what's going on. The house price increase argument needs more statistic back up. In my city, investors definitely have boosted prices, however I'd say less than 0.1% of them operate as short term rental (by comparing the airbnb listings and total housesold, and I'm very conservative on the percentage already). So by the same token, do we only sell house to people who use it as primary residence? Then what about the families can't afford houses but do need a 3B2B single family house? If there's opportunity, there will be capital. That's your Economic 101. If the housing market reaches to the point that average house purchased via 30yr loan will not net cash flow based of long term rental, things will slow down. Simple as that. Airbnb is collecting taxes, and as a host I report my revenue to the city as well.
What makes me laugh is that this is what Hotels been doing forever! Buying up property that can be used for houseing. Driving price of realstate up! Yet all that money being made is sent to only what 2 Families to the state they live in! At least with Airbnb the money stays in the neighborhoods!
This is happening in Berlin, Dusseldorf and Cologne. Renting in germany is fairly popular, and the homes that are owned by groups tend to be owned by american corps. It's been a growing problem, that rent space, especially in dense centres, are build as luxury rooms just to be used for vacations or business stays at increased fee through services akin to airbnb. This makes it more profitable to have one person stay a week in there, than have someone rent the same space for a complete year or longer. In Berlin, this has caused several issues, even protests to threat disowning said groups, which was shut down on political local level and the groups raised the rents in response. Cologne has an issue of being a college/campus town, that needs cheap rentable spaces for students and is actively paying for people building rooms for these, but landlords taking this money build luxury "hotel rooms" instead, and cologne does not controll if the money was used for its intended purpose. You have people begging to get any room at any reasonable price, while the city is full of vacant rooms. This housing problem fuels car issues, since people cant live near their workplace, and furthers poverty. It's slowly encroaching that we might need to get rid of landlords as a concept.
When you enter a house that you don't know and turns out to be very bad, and you can't cancel the agreement or you will loose your money.. then you stop dealing with AirBNB cause some rents are hoax ...
I worked with an Airbnb super host who owned several homes that he listed on Airbnb. This was in Orlando , FL so the demand was always high. The owner was a former real estate agent and would usually offer long term leases to locals rather than the tourist because it is a lot of work to maintain the homes for Airbnb. However, renting an entire house for $1500 near downtown Orlando was way less than getting $3-4k a month via Airbnb. But the demand for housing was strong in Orlando and the houses plenty whereas a place like San Francisco or NY is going to be much more limited. In those big cities, I can see how this is a problem but for the areas where the houses are plenty, I can see this being a profitable option for home owners.
This is a smaller part of a much bigger issue: lack of affordable housing, lack of support for first time buyers and lack of rent controls/regulation. To blame this on Air BnB is really short sited and clearly there are advantages and disadvantages to its popularity.
At this point it's not about affordable housing at all. It's about housing, period. The number of expat students going homeless in Amsterdam because there is no one willing to rent to them is staggering - can't get social housing because you're not dutch, can't rent on the private market (even if you're willing ti shell out 1k for a tiny bedroom in a shared apartment) because of income requirements. But the Unis love to attract them anyways, because their tuition is easy money. Especially with long distance learning. Most of them didn't know what they were getting themselves into.
Just found your channel through this episode. Thank you for such a well researched and balanced reporting on the impact of Air BNB. You just earned a subscriber.
Lou is by far the best on this channel. His research and arguments are incredibly interesting and knowledgable so even when you don't agree, you consider his perspective. Plus he is a 'cuse grad so that's not bad either.
Actually, AirBnB can decrease rent. Many airBnB renters will give you 50%-75% off if you stay 3 months. If you are just going to be in town for 3-6 months and can't get an apartment without a year lease, you have to stay in a hotel for those 3-6 months. It is much cheaper (and nicer) to stay in an airBnB.
Renters should be allowed to rent their home to AirBnb. Government shouldn't enforce evictions based on guests. None of the landlord's business what guests you invite in your home. If there's damage to the apartment, the renter is liable. If a guest squats (and wrongly claims to be a tenant), that's an issue. Neither of these legitimate landlord concerns apply to AirBnb guests. Other than that, stop expecting government "fix" local issues. The fixes will also have unintended consequences. If the local issue, like NYC is overcrowded, if it's that horrible, then leave NYC.
Airbnb is only harming those that aren't getting into it. If it's getting harder to rent places. Then people need to return to buying property. Airbnb has made property much more valuable. Even if it's just land. You can put an airstream on the land or even in your backyard and turn it into an Airbnb. It opens freedom for experimental architecture, or building that dream Treehouse you've always wanted. Airbnb "Experiences" allow people with the energy and motivation to become tour guides of their beloved cities and neighborhoods, or become different kinds of hosts only limited by their creativity. Airbnb allows us to be more mobile too by putting our own homes on Airbnb when we want to travel and negating the dreaded Double Pay for lodging. It has way more benefits than negatives and the only ones Salty are those too aloof to make Airbnb work for them. BTW never buy a condo/highrise that has Restrictions on Short Term Leasing.
Airbnb pushes workers further out of cities, suddenly everyone has a 40 mile commute to work. Anyone that cares about the effect of supply and demand on fuel prices, should be concerned about this. Also the environmental costs.
I see air bnb as the new mom and pop businesses. So if you support big businesses hotels, then you must get rid of all small businesses and support only big business. Like Chevron gas stations, Hilton's hotel, McDonald's restaurants style. And I have yet to see how it's making housing harder. Greed and high taxes is causing housing to skyrocket
Airbnb is the best place to stay and meet people who can become a good friends and I am lucky to have met nice people. I only rent to people who travel on business. I have been a GM in hotels for a long time.
I live in Stockholm. Stockholm is one of the hardest cities to find an apartment in. It's brutal, it's silly. It's bad. Airbnb should only be legally allowed for FIRST homes, only. At least in Stockholm, I can't speak for the rest of the world.
I mean, it might be a small percentage attributable to house price rises...but overwhelmingly it's the change in mortgage debt that drives house prices. Both up and down.
Fair and even handed In Canada in places where rent was already rising like Vancouver it has pushed people even more out of the city center and been a bit of an annoyance to say the least. In places that already had a serious housing crush like Whistler though, it has been apocalyptic.
Air bnb is ruining the house rentals by a lot ! imagine that there are people that complains in countries with strong economy , now put in your mind this what impact does it have in a country with economical crisis like Greece! Yes i live in Greece and you can find so many air bnb houses and so few rental houses , the price is skyrocket beyond any logic , people are renting houses without even see them first because there is so much need ! Imaging a house of only 30sqm having a rent cost of 350 euros ... the basic wage is 600 euros . i checked the rental prices before this air bnb hellish nightmare , a 65sqm apartment had an average cost of 300 Euros ... in 2015 2019 because of the air bnb that same house has a rental price of 550 euros . I would be so happy to learn one day that the air bnb bussiness is Banned in my country
I live in Tahoe and it's a massive problem up here. As a collection of small towns in a tourist destination the influx of vacationers during the winter and summer is overwhelming. In my own town, only 54% of the homes are primary residences. The other 46% are owned by second homeowners and these are usually put on Airbnb rather than rented to local employees long term. The end result is that the local renters struggle to find housing at all and what is available is way above what their monthly wage can afford. To be fair, this was always a problem with VRBO and other vacation rental services because people want to own their Tahoe house and only visit it a couple weeks a year.
On a macro level, Airbnb is not a good thing. We’ve seen too many popular places become tourist ghettos - where blocks of apartments in the city center have been converted to Airbnb apartments. They’ve resulted in higher prices, locals having to move out, and a gutting of the authenticity of many city centers.
So the study showed that Airbnb basically isn't respondible for rising rents? Interesting, it must be local governments blocking new house building then, which is a chronic problem in California.
Airbnb runs a business. Obviously they care much more about their bottom line than they do about poetical community downsides. Also, it's great that people are choosing to rent rooms on Airbnb instead of renting traditionally. Entrepreneurship is a wonderful thing. If you could make more money doing something in a new way, go for it. It's being smart, not greedy.
What about the effect of NIMBYS or the types of apartments built? Every apartment I have seen built near me are luxury apartments with high rents (of course this is anecdotal).
I live in Florence, Italy, one of the most visited towns in the world. Millions of tourists every year fight with a native population of just 350000. 100k of those left the city center which has basically become all airbnb/hotels. There are hardly people living there all year. Florence city center has become a tourists Disneyland where you can see drunk American tourists peeing or even shitting and vomiting in the street and this is sad.
A good example of a city that has been affected by this, is (O)Porto in Portugal. A friend of mine got their tenancy terminated when the owner of the building they where living in, died & the building got passed on to the next generation. They decided to turn all the flats into buildings that they would rent out on airbnb. In the end (as mentioned), it just moves people out of these more central areas & people are straight back staying in the tourist spots and don't get to see anything of the real parts of town, anyway. But yeah, Porto got other reasons for landlords to choose airbnb over letting to locals. Apparently it can be very hard to evict tenants that decide to become squatters & even if the law would obviously give favor to the home owner, in the end. It could still be a long and costly process, that many landlords are terrified off. Anyway, back to subject.. I have never tried airbnb & I guess part of it, was cuss I used to be quite active on couch surfing, like 10+ years ago.. I think that after having had so many amazing experiences with it, I could never see airbnb in as a great light, as many others. I mean, don't get me wrong, I think in many ways, airbnb is great and I'm sure airbnb have been a blessing to couch surfing, in many ways. lol. Na, but I probably stopped using the site, more or less, a couple of years before airbnb became the rage, so can't really comment on the change. But I'm sure airbnb have been a blessing to the site, for ppl like me, that didn't like what it had become. Though I'm sure couch surfing, as a "business", got hit really hard.. Anyway, rant over.. Lol
people been doing this since traveling became a thing , its just easier to make it happen with technology now but the concept of airbnb been around for centuries !
I hate it so much that youtube forced me to watch that video... It kept recommending it to me until I finally gave in and I didn't like it enough to justify that pushing.
I think of you rent a property you will never see any real value in investing in it as if it’s your own property。 I agree that Airbnb is never gonna be as valuable as this video suggests. Homes should be lived in and not used as a hotel.
That has happened long before airbnb. In cities with Unis there are a lot of apartments that are exclusively for renting. That was only centralized with airbnb. And airbnb can only help with situation, they can't make it worse. You only hype on popular name.
Did you know that Airbnb considers fire extinguishers to be an amenity? Found that out the hard way after I turned on a heater in a bathroom that the hosts admiting that they never tested after owning the place for a coule of years.
If rents are rising, at some point they will be more advantageous than airbnb. A lot of factors contribute to the rise in the house prices all over the world, I would guess that the single biggest factor is the credit for new homeowners. People in NYC claiming that airbnb is influencing that much in rental prices seems a little far fetched to me.
Another note on the "econ 101" part of this video. If it raises prices in the short run, that may also incentivize the creation of new housing (assuming there aren't a ton of regulations preventing this from happening) in the long run, which would bring prices back down, and make housing more available for locals.
so airBnB imports the seasonal emptiness of areas that you get in tourist areas to everywhere? seems like a great idea to take a high population density area designed to be highly dense, then just empty it of people for tourists.
We're going to put the community tab to use with a Q&A. If you have a question for me about this story, any story, Beme in general, best beer spots in NY, or whatever...leave them here or tweet me @loufoglia. I'll answer a few and post it to community tab in the next few days.....
Louis Foglia thank you so much for taking a good and important story and talking about the pros and cons of both sides. Keep it in the middle beme, we need centrist news!
It's always good to hear the viewers, I would like to see AI or tech ethics videos!
Love this one, love the format, dig the new logo, love the idea of different takes on the logo for different eras. hope u feel my love ray beams. i think im some kind of journalism snob too, so i think my vote counts extra.
The chart at 4:10 is quite misleading, starting from 45% and not from zero.
I had an unconventional use for AirBnB that can be really helpful for moving to the city. I had the resume to get a job that would definitely pay my bills once getting to NYC, but because of where I was coming from I didn't have the proof of income for anyone to be willing to rent to me, especially without proof of employment, and I couldn't get employed without being there for interviews that I couldn't afford to fly back and forth for. Solution: Ship all my stuff in shipping container (POD or similar service) that allows a storage period, fly to the city with checked bags & 1 month's supplies, check into a 1-month stay at an air-bnb, use first couple weeks to get job offer & begin training, next couple weeks to see apartments & lock down a place, with the option to airbnb for longer until you find a spot convenient for your new job. The trick was having enough leftover money so when you approach the landlord with proof of employment but no income history at the right level, you can offer a couple months advanced rent then live frugally until the first paychecks hit. If you downsize enough, you may not even need the storage/shipping container. I could imagine doing away with AirBnB but having a different service offer such short term housing solutions, could come complete with services for people new to the city in effectively an apartment building/hotel designed for this purpose. Affordable, pay up front, short term furnished living near transportation hubs for new residents seeking longterm housing.
In Thessaloniki, Greece airbnb has almost destroyed every neighborhood, especially near beaches or tourist attractions. A lot of people are struggling to find a place to rent by airbnb. Airbnb should be gone. This company cares only about money.
I work in Amsterdam (commute). Parts of the inner city are depopulating at an alarming rate; every vacant apartment is being bought for tourist accomodation. They're trying to curb the tide by restricting hosts to 60 days a year, but that just means that one apartment has several hosts that "live" there. What doesn't help is that because of its free-for-all red-light, drug-friendly image, Amsterdam attracts a certain kind of tourist: mostly Australian backpackers and English stag parties. No improvement to the atmosphere in the city.
Hai, fellow Dutchie here, I live close to Amsterdam (5 mins) and I have people with loud rattling suitcases coming past my window at 4 in the morning, or if it's tourist-season (before covid) veeery drunk British guys that are crawling back home, barfing their guts out in our flowerfield and screaming "Lads, lads" and peeing all over -themselves and- the street.
I like tourists, but mainly the calm, friendly kind, like German families and old British couples. They respect the city and my nightsleep.
I live in Venice (Italy). You can imagine in such a city that can live off only on tourism and locals are very few (year after year moving away) what Airbnb did... Prices are crazy!
This is exactly what has happened in Madrid. The center of the city has been bought out by airbnb owners pushing out the people who rent there, so they move out a little bit further out and the rent rises in less expensive areas accompanied by gentrification. An apartment that cost 700€ about 4 years ago is now 1100€ ¡NEARLY DOUBLE! It's crazy. I'm sure there's other factors, but the rise of "professionalized" AirBnB in Spain has been colossal.
Yeah - and on top of the price increase, tourists change the character of a city. It's not good. Cities are becoming playgrounds for the wealthy.... Hopefully governments can regulate Airbnb more effectively and try to reverse that trend...
Cape Town is a similar story
All those tourists bring a fu*kload of money to your city and your income increases if you have any skills. Quit complaining. Other towns would love to have some tourists.
PS: I'll come to Madrid and stay in an airbnb and be loud on the streets. Joder! ;)
I'm sorry but the center of Madrid has never been cheap to live in, maybe just a bunch of neighbourhoods which were full of bars and loud people until late night. The moment they became hipster-wannabe-nests is when they started to become expensive af. Airbnb surely has an impact in many cities and specially some specific neighbourhoods, but big cities like Madrid have never been "cheap" and seeing the recent financial status regarding real estate in Spain it shouldn't come as a surprise that prices are shooting up like crazy now. As said, Airbnb may be one of the several factors playing a role in that situation, but it's for sure neither the worst nor the most important one.
gominuke But that’s good! It’s increasing the value of properties and capital gain of neighborhoods
Homes or dwellings that are being completely rented not just one room but the entire dwelling should be taxed identically to a hotel if they're allowing people to stay less than 30 days. Zoning laws everything should be the same. If this doesn't happen it's going to ruin the rental market like it's doing. I'm in the New England area right now and you can't find a rental property for more than a couple days.
taxed identically and have to follow the same regulations as well.
Airbnb do make hosts pay a Hotel Tax. We also have to pay taxes on Capital Gains from Airbnb. You can't avoid it and it's built into Airbnb to send you the forms each year.
Airbnb is making my hometown, Thessaloniki in Greece, impossible to live in.
There are no apartments or houses available for people except students and tourists anymore! I was searching for 2 months to find a place. The prices have tripled. I finally found a place to live in, but it was ruined, and the landlady told me that's the only reason she rents it cheap, and that I should never expect her to fix anything.
My mother rents the same place for 10 years now and this summer the landlord demanded a 25% rise in the rent she pays him, "because of airbnb" he told her. She refused to pay him of course, but she doesn't know if her contract will be renewed after it expires.
It's like this almost all over Europe. Glad the Netherlands made laws to keep the cities clean from too many AirBNB's, but it's a major problem in other countries. Too bad most people don't care about that. They just want to 'travel' for cheap
Tourism may be the worst job creation industry ever, just a bunch of service people making minimum wages
Except for the home owner who actually is able to make some decent cash this way! It rocks if you are lucky enough to be in that position.
The housekeepers in my town are making $20 and hour thanks to Air Bnb so it's not always a bad scene.
and it primarily caters to the wealthy. lose-lose
We live in Barcelona, Spain (we are ex-pats from the US) and the city just said 'No more' and just removed 2500 listings from Airbnb.
Absolutely raising rents in my neighborhood,. I´m being priced out of my apartment.
To many people! Image if all those hotel rooms can be made into apartments!
Exactly! People in other states buying up homes just to list. Running out people who actually live and work in the communities.
Countries who's main business is tourism are feeling this more than the US. Ireland gets about 8-10 million visitors a year which is more than double the population, and they only visit cities which make up about 1.5m people of the 4.7m in Ireland. It's driving rent THROUGH THE ROOF and we now have one of the worst housing crises in Europe.
People can do whatever they want with their homes.
This is not about renting out a single home, it is about landlords deciding to rent out multiple apartments that were once residential apartments. Those apartments are zones as residential apartments and not hotel rooms. Also, there are people that go around and sign multiple leases and then turnaround and rent them as hotels. This practice also causes pressure on the housing market.
Colin Yapp Everything will come to equilibrium. The VRBO market is a small fraction of the rental market. I could make a long reply using many of the same arguments for why minimum wage doesn’t make sense. But suffice it to say, we disagree on the amount of regulation that should be imposed on property owners.
I do not believe so because most of the apartments that are used for AIRBNB are modest apartments that are being pulled from highly sought after tourist areas, most notably Manhattan, Brooklyn and San Francisco. These areas already have had major issues with affordable housing and the removal of these units make it far worse. I know of a few buildings in Harlem that have had nearly 50% of their units shifted from apartments to short term rentals. Saying that there will be equilibrium is just another way of saying let the markets do as they please.
iChase the equilibrium is taking too long and people hate to suffer in masses for long times. Humans need shelter
Everything will come to equilibrium??? even the father of capitalism free market Adam Smith says that regulations are important to maintain a good economy. Equilibrium is when society wakes up and decide to regulate markets and stop monopolies.
Very balanced reporting on this story, in an age where we see so much division I am always grateful to see reporting that is done right, balanced and informed by empirical evidence.
Appreciate it Wesley. I often share my opinion (I see this as a commentary show), but I always try to include different perspectives.
Check the enpyrical evidence on lisbons airbnb impact in housing prices and comment that again
Airbnb and uber got so rich so quick by bypassing regulation that hotels and taxi companies have to obey. Companies like Airbnb need to be regulated because greedy ppl will use their nice concept of evil. My friend dated a guy in the past who does that buy apartment across a city and only give it as Airbnb. For him who was born into a wealthy family, he has the money to do that. While regular joes cannot do that. We need to regulate Airbnb and uber if not we going to ruin the ppl who live in those cities.
How are they evil? The reason these companies exist is because their services benefit everyone in the transactions. People rent out their house/chaffeur people around because they want money, and people get driven around/a place to stay for a few days. What's the harm in that? The taxi industry is dying because nearly everyone prefers Uber. Taxi drivers have given me terrible experienced in the past, being rude, not knowing where to go, etc., But Uber drivers are nearly always amazing. Same sort of story of Airbnb. Is there some collateral damage? Maybe a small amount, but the same thing has happened with every new industry, be it the model T hurting horse related industry to the internet killing the physical music industry. If hotels and taxis can't adapt to something better and/or cheaper, they can and should die.
Sure regular Joes can do that. Why not? You buy a house to live in, and reserve a room for Airbnb or build one in your backyard, or buy land and put an airstream on it.. Or lock up your personal items in one room and lease out the rest of your house on Airbnb while you go travel europe or something. Anyone CAN do it that has at least some decent credit to buy a home or condo or open land. There are tons of open land all over America and the world to use to create a small Airbnb paradise. You only look at problems rather than realize solutions and potential.
“Are Millennials Ruining Cities?”
Missed opportunity for the most clickbait title of all time.
Vincent Ippolito But yeah, they are. By every standard you could dream up. All consumption, no contribution.
@@daemonsilver3304 Sure, blame the generation tied down by debt- the one that can't afford to buy property like their parents. Having to work free internships to get a job in a year. Sure, blame millennials- not this race to the bottom capitalism.
Airbnb is in a much better position than uber due to their supply. The reformation of commerce driven by the sharing economy is good as commerce is defined by new players shaking up the establishment.
It’s your home... why shouldn’t you be allowed to do what you want with it.. the housing market is at record highs right now of course rent will be high. What happens when it crashes again and we put these regulations in place? It’s good that hotels have competition finally. Let them figure out a way to compete.
Agreed
Exactly.. Wake up people so many are mad at corporate america. It does not get much more mom and pop than airbnb
Casey lawton Have you even seen the video? The only point it makes is that what causes harm to cities is the unregulated professionalization caused by airbnb with entrepreneurs buying entire buildings to put them on airbnb
The problem are people buying places to rent them out on Air BnB. Also, some people rent out the apartments they lease(even though they shouldn't and can be kicked out if the apartment building management decides to do something about it). It's also a problem for the neighbors of people that frequently rent out their whole until in an apartment building. I support people that are renting out temporarily(less than 2 months a year) or those that are renting out a room in their home while they are there.
So what? This will force demand thus growth elsewhere in cities. Of course, our governments don't like to see the short-term "disruptions" so they just regulate the crap out of things until there's no competition. They make up some BS like rents are rising solely because of Airbnb while ignoring the fact that rents are rising mostly due to over-regulation in the residential and commercial development industry.
Guess what in Amsterdam. Houses rented with state help for those who need it are used as airBnB's. Three days of rent makes it break even. Many stay for a couple of days with friends or parents and there you have it. Free living with help from the state and even profit while housing prices rise for everyone. Insane. Destroys the market for people who earn (a little bit) more than the minimum.
:( it really is insane.
You are generalising over there I am pretty sure majority of people in housing don't use it for airbnb
issa osama did not say anything about the majority, but enough to affect the market...
Well, that`s the state fault for giving away money to people that dont need it.
Anything can be characterized as being the fault of the person meant to prevent it from happening. When you dont pay your taxes is it the fault of the government for not forcing you? And all the people who pay their fair share cause their morals compel them to, are they fools?
That's why I look for owner-occupied types of appartment when I book AirBnB.
Yes, they are not as streamlined and/or "clean" as hotels, but at least, they're not disguised "cheap" hotels.
As a side note, there is a condom snorting trend? WTF.
I absolutely despise this terrible company! I live in a smallish tourist town in South Africa and house and rental prices have skyrocketed since airbnb started becoming popular the last few years. It's very difficult for our municipality to regulate all the listed properties and we're running into real housing problems in our town.
You despise it because you're not getting anything out of it. Figure out a way to use it rather than sulking and you will learn to love it. It has way more benefits than negatives. If it's too bad in your city, you can move. Otherwise you do like people in other cities, you scrounge and build credit to buy your own property. You should never depend on rental economy to live forever. It is a convenience to rent, not a long term strategy. You throw money away every month by renting. Everything should be considered an investment. You have to mature and plan your future. Buy property and build your own Tiny Home if need be. UA-cam is full of lessons for how to do it. Use Airbnb once you've built something you own and lease out to other people who choose to live in temporary lodging. All land will keep going up in value. It's a better investment today than it ever was in the past. Population grows.. cities are growing. People need to live on land and it's going to keep increasing. It's not Airbnb's fault. It opens more value for owning rather than renting and gives owners much more options.
Price ceilings in NY controlled rents have helped create this opportunity for Airbnb, it's another example of innovation in answer to draconian regulations and rent control laws.
In Budapest where people earn around 500 Euros (roughly between 380-1200) a rent for 1-bedroom apartment costs 480-500 Euro... but in the best areas it can cost 700 Euros as well.. on average! (Not much I can admit but when you earn 500 Euros its quite high.)
5 years ago or so an apartment costed 250-300 Euros.
Why do we cater to tourists over actual residents of a city?! I see, its good money for some.
But still.. 27 years is the average age of a hungarian when they move out from home.
I did it once and found it distasteful. I was traveling with a friend who was a little cheap. I prefer upscale, convenient, classy and comfortable CLEAN places to stay like the St Regis or Ritz. Who knows if that person has a communicable disease? What if they have a camera spying on you ? ... It didn’t feel safe or private.... It was creepy and uncomfortable. The whole point of vacation is going somewhere nice and spoiling yourself. Not staying in some crappy strangers house. Not sure why it’s so popular....
We've got a bit of a crisis here in the last few years. Too many people living here and not enough homes.
Home owners have been more interested in making money with the use of AirBNB than renting out long term, like you said.
This has caused a lot of fuzz between the government and AirBNB, whereas the government requires information on all whom use AirBNB so they can see how much these home owners make because these owners aren't so eager to pay taxes from their incomes.
There has been a lot of discussion re this issue and its impact upon homelessness in my city, Hobart, Tasmania. Although Airbnb has had positive impact upon our economy by enabling our tourism sector to grow more rapidly, it has coupled with a supply shortage on new homes to create a very untenable situation for local renters who are being priced out of the market.
In Denver there are regulations that ensure that you actually live in the house and it's not just a 100% rental place. You have to get a license and display the number on your airbnb listing. They then browse the site looking for any listing with no license number and fine them. Seem to be working well.
Wow, that’s the most balanced view on this issue I have ever seen. Great job. I live in NYC, and your right that it is a passionate issue. I think something is being missed here. If the argument by some is that Airbnb is taking apartments off the market and therefore driving up costs, and this is actually a small amount of units, then ask yourself “who is taking the most units off the market?” Answer: govt housing programs like “affordable housing, public housing, rent subsidies, rent stabilization, and rent control.” Run the numbers on the turnover in these units and you will see that it’s a fraction of the broader rental market. The one taking the most units off the rental market are local govts. Im no expert but that’s my view from the sidewalk.
Thanks Mike - interesting perspective.
Air bnb is great in all the ways you said, but it needs REGULATION. For example, no tolerance for rowdy guests, home safety regulations, and most importantly NO COMMERCIALIZED AIR BNB!!
That makes no sense? Commercialized is making money. You dont want anyone to make money? Even home owners that buy a home and sell it 20 years later make money on that home. Thats Commercializing!
Excellent job presenting this story. I am not a millennial and use AirBnB 98% of the time I travel for work or personal vacation. Out of the 15 times I have used it, I have been satisfied 100% of the time and have saved a lot of money. It has allowed me to increase my profit by decreasing my travel expenses and given me access to parts fo the world that I otherwise would not have been able to afford such as Lithuania, Italy, Ireland, Switzerland, and all over the US. As a user I am obviously a fan. I could tell you that in one instance in Italy, it was obvious that this AirBnB I rented was definitely a professional operation. The claim of increased rents is new to me and that can certainly be a concern.
Gotta say, I use air bnb when I travel, but after living next door to two of them for the last two years I'm reconsidering. They're constantly filled with bachelor and bachelorette parties and they're super obnoxious and disruptive.
Looking at it from the neighbors' point of view. I would not want the constant in and out of strangers in the houses on my street. I want to raise my children without being afraid to encounter someone new every 2 days. Also, there are ordinances in place that prohibit transient housing. Cities need to enforce the laws that are already on the books. My tiny town, in the most beautiful place in America (according to the viewers on GMA, 2011) has been consumed by investors who have been buying up every available house they can find to the detriment of our young families who have no place to live. It's really awful.
Iris Jones if you think “strangers” are out there to get your children...your children are going to grow up mentally and psychologically ill prepared to face the dynamic world. You already assume travelers are liabilities instead of the possibility that they are assets to the community.
Kikyoass - total BS. I don't want to get "acquainted" with every Tom, Dick, and Harry that traipses around in the neighborhood. Looks to me like you don't know what
'neighborhood' means. Let's just leave it at that
You sound like a degenerate who isn't capable of raising children.
I agree with you and don’t listen to those degenerates. They value money over communities. They probably would sell their family if it meant more money in their pockets.
I totally see what you're saying and agree to a certain extent. On the other hand, you live in a city and there are already millions of strangers all around your family daily. Plus, in the case of privately owned homes (not the ones with multiple listings), how do you regulate it without infringing on private property rights?
I live in Crestone, CO. It is an airbnb saturated, touristy community. I survive by cleaning the airbnbs, and I am homeless because I cannot afford the over-inflated rent prices. The irony is this tiny mountain community has several spiritual communities, primarily Buddhist. Yet their greed keeps me and other laborers sleeping in our cars or in tents. And a greater irony is - I do not live off of govt social programs, yet many of them do! I work my ass off, and they live off of airbnb income and/or ridiculous priced rentals. I've been here five years, and I see it only getting worse. I do not want to be homeless anymore.
AirBnB needs to be regulated but it does have a lot of pros like making it easier to travel if you're too poor for hotels. But def needs to be regulated otherwise there'd be no homes left for locals.
So here is a solution which I think makes a lot of sense for everyone. Traverse City, MI is holding a hearing on June 5th. The gist of their proposal is this, the
proposed tourist houses need to be hosted, meaning a homeowner is in residence, greets the guests, and spends the night. This will prevent turning neighborhoods into transient housing. 'This assures neighbors that an owner is available and responsible for maintaining usage compatible with neighborhood values...'
My town in bringing in the same rules. I guess it's a fair compromise though I don't relish the idea of living in the same space as my tourist guests.
In Amsterdam the government collaborated with Airbnb. Landlords are now allowed to rent their flats maximum sixty days a year. It's at least a step towards this Airbnb insanity.
A similar thing is happening with Uber in Australia. People are buying or leasing a number of cars, and charging drivers more than $1000 a month to use them, or the owner get everything and pays the driver a small wage.
Airbnb needs more strict controls. Big share of Room Renters are in reality common thieves. They rent out rooms of "their" appartment which they themselves are renting. The real Landlords usually are never being told of these schemes. I know many people who are seriously "normal" but can''t seem to understand the evil behind earning money over something you do not OWN!
I'm a host and certainly I'm biased. However I really think long term vs short term rental are facing the same issue essentially. The most common claim I have is don't want to see frequent new comers as they are potentially problematic. But don't you have "that neighbor" that the landlord happens to rent to without much investigation of his background? And you have to withstand that for 12-24 months. My neighbor is happier than before, it's his words. Previous house owner has more than 10 people living in it, don't speak English, constantly blocking my neighbors driveway. I inform my neighbors well about what I do and welcome them to supervise what's going on.
The house price increase argument needs more statistic back up. In my city, investors definitely have boosted prices, however I'd say less than 0.1% of them operate as short term rental (by comparing the airbnb listings and total housesold, and I'm very conservative on the percentage already). So by the same token, do we only sell house to people who use it as primary residence? Then what about the families can't afford houses but do need a 3B2B single family house? If there's opportunity, there will be capital. That's your Economic 101. If the housing market reaches to the point that average house purchased via 30yr loan will not net cash flow based of long term rental, things will slow down. Simple as that.
Airbnb is collecting taxes, and as a host I report my revenue to the city as well.
What makes me laugh is that this is what Hotels been doing forever! Buying up property that can be used for houseing. Driving price of realstate up! Yet all that money being made is sent to only what 2 Families to the state they live in! At least with Airbnb the money stays in the neighborhoods!
I can have my news like this all day long.. much better than the typical news channel way of presenting news
I get your point but I disagree that everyone hates tourists. At least where I live in Rio de Janeiro, most people seem to love tourists
As a renter in San Francisco, I hate Airbnb... as a person who likes to modestly travel I love Airbnb.
This is happening in Berlin, Dusseldorf and Cologne. Renting in germany is fairly popular, and the homes that are owned by groups tend to be owned by american corps. It's been a growing problem, that rent space, especially in dense centres, are build as luxury rooms just to be used for vacations or business stays at increased fee through services akin to airbnb. This makes it more profitable to have one person stay a week in there, than have someone rent the same space for a complete year or longer. In Berlin, this has caused several issues, even protests to threat disowning said groups, which was shut down on political local level and the groups raised the rents in response. Cologne has an issue of being a college/campus town, that needs cheap rentable spaces for students and is actively paying for people building rooms for these, but landlords taking this money build luxury "hotel rooms" instead, and cologne does not controll if the money was used for its intended purpose.
You have people begging to get any room at any reasonable price, while the city is full of vacant rooms. This housing problem fuels car issues, since people cant live near their workplace, and furthers poverty. It's slowly encroaching that we might need to get rid of landlords as a concept.
When you enter a house that you don't know and turns out to be very bad, and you can't cancel the agreement or you will loose your money..
then you stop dealing with AirBNB cause some rents are hoax ...
I worked with an Airbnb super host who owned several homes that he listed on Airbnb. This was in Orlando , FL so the demand was always high. The owner was a former real estate agent and would usually offer long term leases to locals rather than the tourist because it is a lot of work to maintain the homes for Airbnb. However, renting an entire house for $1500 near downtown Orlando was way less than getting $3-4k a month via Airbnb. But the demand for housing was strong in Orlando and the houses plenty whereas a place like San Francisco or NY is going to be much more limited. In those big cities, I can see how this is a problem but for the areas where the houses are plenty, I can see this being a profitable option for home owners.
This is a smaller part of a much bigger issue: lack of affordable housing, lack of support for first time buyers and lack of rent controls/regulation. To blame this on Air BnB is really short sited and clearly there are advantages and disadvantages to its popularity.
Great video and analysis!
Thanks Marcello - appreciate it.
Marciello e da qua che assumi la tua knowledge eh
Question: Does EVERYONE who moves into a large city DESERVE to righ to IMMEDIATE affordable housing? Just wanna know what people think.
At this point it's not about affordable housing at all. It's about housing, period.
The number of expat students going homeless in Amsterdam because there is no one willing to rent to them is staggering - can't get social housing because you're not dutch, can't rent on the private market (even if you're willing ti shell out 1k for a tiny bedroom in a shared apartment) because of income requirements. But the Unis love to attract them anyways, because their tuition is easy money. Especially with long distance learning. Most of them didn't know what they were getting themselves into.
Just found your channel through this episode. Thank you for such a well researched and balanced reporting on the impact of Air BNB. You just earned a subscriber.
Lou is by far the best on this channel. His research and arguments are incredibly interesting and knowledgable so even when you don't agree, you consider his perspective. Plus he is a 'cuse grad so that's not bad either.
Good job.
Heard the same stories about Amsterdam in my country.
And there already is a huge housing shortage here.
Actually, AirBnB can decrease rent. Many airBnB renters will give you 50%-75% off if you stay 3 months. If you are just going to be in town for 3-6 months and can't get an apartment without a year lease, you have to stay in a hotel for those 3-6 months. It is much cheaper (and nicer) to stay in an airBnB.
Prft no
you can’t ban Airbnb. of course, I want everyone to have affordable housing and not increased rents but I doubt Airbnb will go away.
Renters should be allowed to rent their home to AirBnb. Government shouldn't enforce evictions based on guests. None of the landlord's business what guests you invite in your home. If there's damage to the apartment, the renter is liable. If a guest squats (and wrongly claims to be a tenant), that's an issue. Neither of these legitimate landlord concerns apply to AirBnb guests.
Other than that, stop expecting government "fix" local issues. The fixes will also have unintended consequences. If the local issue, like NYC is overcrowded, if it's that horrible, then leave NYC.
internet person except owners usually lend several apartments. Neighbours complain about noise from tourists
Airbnb is only harming those that aren't getting into it. If it's getting harder to rent places. Then people need to return to buying property. Airbnb has made property much more valuable. Even if it's just land. You can put an airstream on the land or even in your backyard and turn it into an Airbnb. It opens freedom for experimental architecture, or building that dream Treehouse you've always wanted. Airbnb "Experiences" allow people with the energy and motivation to become tour guides of their beloved cities and neighborhoods, or become different kinds of hosts only limited by their creativity. Airbnb allows us to be more mobile too by putting our own homes on Airbnb when we want to travel and negating the dreaded Double Pay for lodging. It has way more benefits than negatives and the only ones Salty are those too aloof to make Airbnb work for them. BTW never buy a condo/highrise that has Restrictions on Short Term Leasing.
Airbnb pushes workers further out of cities, suddenly everyone has a 40 mile commute to work. Anyone that cares about the effect of supply and demand on fuel prices, should be concerned about this. Also the environmental costs.
Without Casey’s association I think Lou would be talking to himself.
I see air bnb as the new mom and pop businesses. So if you support big businesses hotels, then you must get rid of all small businesses and support only big business. Like Chevron gas stations, Hilton's hotel, McDonald's restaurants style.
And I have yet to see how it's making housing harder. Greed and high taxes is causing housing to skyrocket
I'm a millennial renter and also use Airbnb when I travel. I'm willing to accept marginally higher rent for cheaper holidays.
airbnb was cool when it started, now it has become a problem and much less personal.
Airbnb is a good thing. If the hotel industry can’t evolve then maybe they shouldn’t be around. Just a thought
Free market. Good grief, let's regulate what you're allowed to do investigative news on. Regulation is RARELY the answer.
Airbnb is the best place to stay and meet people who can become a good friends and I am lucky to have met nice people. I only rent to people who travel on business. I have been a GM in hotels for a long time.
I live in Stockholm. Stockholm is one of the hardest cities to find an apartment in. It's brutal, it's silly. It's bad. Airbnb should only be legally allowed for FIRST homes, only. At least in Stockholm, I can't speak for the rest of the world.
before we bought our house, we did airbnb with a retired couple for 2 months..
best money we ever spent
I mean, it might be a small percentage attributable to house price rises...but overwhelmingly it's the change in mortgage debt that drives house prices. Both up and down.
Fair and even handed
In Canada in places where rent was already rising like Vancouver it has pushed people even more out of the city center and been a bit of an annoyance to say the least.
In places that already had a serious housing crush like Whistler though, it has been apocalyptic.
Air bnb is ruining the house rentals by a lot ! imagine that there are people that complains in countries with strong economy , now put in your mind this what impact does it have in a country with economical crisis like Greece! Yes i live in Greece and you can find so many air bnb houses and so few rental houses , the price is skyrocket beyond any logic , people are renting houses without even see them first because there is so much need ! Imaging a house of only 30sqm having a rent cost of 350 euros ... the basic wage is 600 euros .
i checked the rental prices before this air bnb hellish nightmare , a 65sqm apartment had an average cost of 300 Euros ... in 2015
2019 because of the air bnb that same house has a rental price of 550 euros .
I would be so happy to learn one day that the air bnb bussiness is Banned in my country
Sounds like a problem only in major cities!
yeah pretty much
I live in Tahoe and it's a massive problem up here. As a collection of small towns in a tourist destination the influx of vacationers during the winter and summer is overwhelming. In my own town, only 54% of the homes are primary residences. The other 46% are owned by second homeowners and these are usually put on Airbnb rather than rented to local employees long term. The end result is that the local renters struggle to find housing at all and what is available is way above what their monthly wage can afford. To be fair, this was always a problem with VRBO and other vacation rental services because people want to own their Tahoe house and only visit it a couple weeks a year.
On a macro level, Airbnb is not a good thing. We’ve seen too many popular places become tourist ghettos - where blocks of apartments in the city center have been converted to Airbnb apartments. They’ve resulted in higher prices, locals having to move out, and a gutting of the authenticity of many city centers.
Same deal with Hotels!
Maybe if hotels weren't so expensive people wouldn't use Airbnb so much Q_Q
Is Beme still connected with Casey Neistat or CNN in a certain way? I've missed a couple of months of information so I'm not up to date
Casey isn't involved. CNN still owns us (pays our salaries). We have complete editorial control.
Louis Foglia this is very important that you hava the controll this is what i can respect.
So Casey is no longer overseeing Beme?
Cole Ferguson Casey is out, he's now working in "368",you can see it on his YT channel
So the study showed that Airbnb basically isn't respondible for rising rents? Interesting, it must be local governments blocking new house building then, which is a chronic problem in California.
Airbnb runs a business. Obviously they care much more about their bottom line than they do about poetical community downsides. Also, it's great that people are choosing to rent rooms on Airbnb instead of renting traditionally. Entrepreneurship is a wonderful thing. If you could make more money doing something in a new way, go for it. It's being smart, not greedy.
What about the effect of NIMBYS or the types of apartments built? Every apartment I have seen built near me are luxury apartments with high rents (of course this is anecdotal).
I live in Florence, Italy, one of the most visited towns in the world. Millions of tourists every year fight with a native population of just 350000. 100k of those left the city center which has basically become all airbnb/hotels. There are hardly people living there all year. Florence city center has become a tourists Disneyland where you can see drunk American tourists peeing or even shitting and vomiting in the street and this is sad.
It's like that in most of Europe. And still people defend Airbnb. It's insane
The money brought into cities by tourists still adds to the economy. Airbnb isn't as bad for the economy is you may think.
It’s true .. they are hurting the rental market in nyc
It's funny how I'm watching this while inside an apartment from AirBnb in Prague...
I live on an island in the puget sound and we are over run with these things, can't rent a decent small house anywhere because of this company.
Very balanced discussion as usual, amazing work you guys are doing! Cheers from Brazil
omg the local news bit at the end got me
I think the way is to limit owners to rent 1-2 real estates per person as you mentioned. Balanced analysis, keep it up.
I love Lou and this show! Its got such a bright future this channel! :) Keep up the great work
A good example of a city that has been affected by this, is (O)Porto in Portugal. A friend of mine got their tenancy terminated when the owner of the building they where living in, died & the building got passed on to the next generation. They decided to turn all the flats into buildings that they would rent out on airbnb.
In the end (as mentioned), it just moves people out of these more central areas & people are straight back staying in the tourist spots and don't get to see anything of the real parts of town, anyway.
But yeah, Porto got other reasons for landlords to choose airbnb over letting to locals. Apparently it can be very hard to evict tenants that decide to become squatters & even if the law would obviously give favor to the home owner, in the end. It could still be a long and costly process, that many landlords are terrified off.
Anyway, back to subject.. I have never tried airbnb & I guess part of it, was cuss I used to be quite active on couch surfing, like 10+ years ago.. I think that after having had so many amazing experiences with it, I could never see airbnb in as a great light, as many others. I mean, don't get me wrong, I think in many ways, airbnb is great and I'm sure airbnb have been a blessing to couch surfing, in many ways. lol. Na, but I probably stopped using the site, more or less, a couple of years before airbnb became the rage, so can't really comment on the change. But I'm sure airbnb have been a blessing to the site, for ppl like me, that didn't like what it had become. Though I'm sure couch surfing, as a "business", got hit really hard..
Anyway, rant over.. Lol
Great economics thought
The way hotels charge is pretty ridiculous. Any change is better in this case.
people been doing this since traveling became a thing , its just easier to make it happen with technology now but the concept of airbnb been around for centuries !
I hate it so much that youtube forced me to watch that video... It kept recommending it to me until I finally gave in and I didn't like it enough to justify that pushing.
I think of you rent a property you will never see any real value in investing in it as if it’s your own property。 I agree that Airbnb is never gonna be as valuable as this video suggests. Homes should be lived in and not used as a hotel.
That has happened long before airbnb. In cities with Unis there are a lot of apartments that are exclusively for renting. That was only centralized with airbnb. And airbnb can only help with situation, they can't make it worse. You only hype on popular name.
Great video. Learned a lot here. Thank you for sharing!
Did you know that Airbnb considers fire extinguishers to be an amenity?
Found that out the hard way after I turned on a heater in a bathroom that the hosts admiting that they never tested after owning the place for a coule of years.
As a tourist, I love Airbnb. But as a student looking for apartments for long term rent, it's horrible.:(
This was a solid video. Good job!
If rents are rising, at some point they will be more advantageous than airbnb. A lot of factors contribute to the rise in the house prices all over the world, I would guess that the single biggest factor is the credit for new homeowners. People in NYC claiming that airbnb is influencing that much in rental prices seems a little far fetched to me.
Approve more residential building! Get off your buns city planning departments, all these problems are on them.
How about airbnb launch a program that allows long term rental?
Absolutely...Air B and B are driving renters out.
Another note on the "econ 101" part of this video. If it raises prices in the short run, that may also incentivize the creation of new housing (assuming there aren't a ton of regulations preventing this from happening) in the long run, which would bring prices back down, and make housing more available for locals.
so airBnB imports the seasonal emptiness of areas that you get in tourist areas to everywhere? seems like a great idea to take a high population density area designed to be highly dense, then just empty it of people for tourists.