{"id":36664,"date":"2024-03-16T14:34:17","date_gmt":"2024-03-16T18:34:17","guid":{"rendered":"https:\/\/mdcthereporter.com\/\/?p=36664"},"modified":"2024-03-16T14:34:17","modified_gmt":"2024-03-16T18:34:17","slug":"airbnb-contributing-to-affordable-housing-crisis","status":"publish","type":"post","link":"https:\/\/mdcthereporter.com\/staging\/8357\/airbnb-contributing-to-affordable-housing-crisis\/","title":{"rendered":"Airbnb Contributing To Affordable Housing Crisis"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Inflation is skyrocketing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The United States has seen rises in everything, from the cost of eggs to the housing market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what about rental properties, especially within the world of <\/span><a href=\"https:\/\/www.airbnb.com\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">Airbnb<\/span><\/span><\/a><span style=\"font-weight: 400;\">?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The popular site was founded in 2008 by <\/span><span style=\"font-weight: 400;\">Brian Chesky, Joe Gebbia and Nathan Blecharczyk. It allows <\/span><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">property owners to make money by renting living spaces like houses, condos, apartments and studios for brief periods.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As opposed to the long-term rental industry, where hosts collect rent on a monthly rate, short-term rentals allow investors to capitalize on people\u2019s willingness to pay for short stays.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airbnb gained traction once it expanded to Germany in 2011 and achieved a <\/span><a href=\"https:\/\/www.igms.com\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">milestone of 10 million bookings in 2012<\/span><\/span><\/a><span style=\"font-weight: 400;\">. With the support of investors, business skyrocketed in 2015 and again before the pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite its success, the online platform needed help when COVID-19 struck and lockdowns were instituted.With people stuck indoors, the high supply of available renting spaces caused a drop in sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Airbnb rental properties were predicted to fall victim to what experts call an \u201cAirbnb bust.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Coined by Airbnb host Jim Ewing, the term describes a decrease in sales leading to a <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.igms.com\/airbnb-bust\/#:~:text=It%20transformed%20the%20way%20people,the%20short%2Dterm%20rental%20market.\"><span style=\"font-weight: 400;\">\u201cdownturn in the short-term rental market<\/span><\/a><\/span><span style=\"font-weight: 400;\">.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After lockdown mandates were lifted, investors anticipated that people\u2019s desire to reunite would compensate for losses in revenue. But it wasn\u2019t. The fear and severity of the pandemic exceeded their expectations. Houses were \u201c<\/span><a href=\"https:\/\/news.yahoo.com\/too-many-rich-people-invested-215048710.html\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">sitting empty<\/span><\/span><\/a><span style=\"font-weight: 400;\">.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ewing voiced his thoughts to <\/span><a href=\"https:\/\/time.com\/6223185\/airbnbs-empty-short-term-rentals\/\"><i><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">TIME<\/span><\/span><\/i><\/a><span style=\"font-weight: 400;\"> in 2022,<\/span> <span style=\"font-weight: 400;\">saying, \u201cWe had anywhere from 70-80% occupancy every month. This year, we\u2019ve had no one in October and we have no one booked for November\u2026so it\u2019s been extremely slow.<\/span><span style=\"font-weight: 400;\">\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But, the business has been resuscitated in the last two years. As of August 2023, Airbnb had more than <\/span><a href=\"https:\/\/www.searchlogistics.com\/learn\/statistics\/airbnb-statistics\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">4 million hosts and 6 million active listings<\/span><\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Airbnb has become an <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.nasdaq.com\/articles\/4-reasons-airbnbs-are-partly-to-blame-for-the-housing-crisis\"><span style=\"font-weight: 400;\">inconspicuous rival<\/span><\/a><\/span><span style=\"font-weight: 400;\"> for people seeking permanent housing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As investors usurp properties to profit off short-term renting, less homes are available for long-term renting and mortgaging. And when limited supply meets unlimited demands, prices soar.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To combat this, cities like Miami, New York City and San Francisco have imposed restrictions on Airbnb listings.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although Airbnb isn\u2019t the sole reason why housing is so expensive, they\u2019ve undoubtedly contributed to the crisis.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation is skyrocketing. The United States has seen rises in everything, from the cost of eggs to the housing market.\u00a0 But what about rental properties, especially within the world of Airbnb? The popular site was founded in 2008 by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. It allows \u00a0property owners to make money by renting [&hellip;]<\/p>\n","protected":false},"author":13482618,"featured_media":36665,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[13],"tags":[],"class_list":{"0":"post-36664","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forum"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Airbnb Contributing To Affordable Housing Crisis<\/title>\n<meta name=\"description\" content=\"Temiloluwa Alagbe discusses the rise of Airbnb and why the business has negatively impacted the property market.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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