It would be a mistake to say all markets are equal, but housing markets in the U.S. It might not seem like much on the surface but there’s a cost creep for those looking to rent long-term or buy. study found that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in house prices.

Research conduced by the Harvard Business Review across the US found that Airbnb is having a detrimental impact on housing stock as it encourages landlords to move their properties out from out of the long-term rental and for-sale markets and into the short-term rental market.Ī separate U.S. The short-term rental sector is just as affected. In major cities such as Amsterdam, Barcelona, Edinburgh, and Los Angeles, studies on the ‘Airbnb effect’ have found that over-tourism facilitated by platforms such as Airbnb negatively impacts on house prices and communities. The ‘Airbnb effect’ is to some extent remarkably similar to gentrification in that it slowly increases the value of an area to the detriment of the indigenous residents, many of whom are pushed out due to financial constraints.Ĭities, popular ones especially, seem to fare the worst. ‘While the introduction and expansion of Airbnb into cities around the world carries large potential economic benefits and costs, the costs to renters and local jurisdictions likely exceed the benefits to travellers and property owners.’ And analysis conducted by the Economic Policy Institute, a non-profit, non-partisan American think tank, found that the economic costs of Airbnb likely outweigh the benefits: Homeowners and landlords also benefit, as turning their rooms and properties into short-term lets can offer an alternative and lucrative source of revenue.īut in recent years the impact of Airbnb’s service on local economics and rental markets has come under the spotlight. Then there are the clear economic benefits for local economies that stand to gain from the increase in tourists supported with a wider variety of affordable and available holiday listings. The platform is widely enjoyed for its access to holiday lets ranging from single rooms to entire properties, varying in quality and affordability, and offering a markedly different experience to that found in a hotel.

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