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Should short-term apartment leasing services such as Airbnb be prohibited in New York City?
A free market does not always shift towards the best choice for consumers or the economy, which is the case for AirBnB. As such, the government has a right and a responsibility to regulate it.
Airbnb is threatening to bring down the entire traditional hotel and hostel industry, which would result in a loss of jobs and instability in the economy.
Airbnb has leveraged its advantage to take a huge share of the market in a short amount of time, and it is still growing at an alarming rate, threatening to
become a monopoly
. This would bring about all the negative consequences of a monopolistic market.
Airbnb makes it difficult to ensure that civil rights with respect to accommodation are protected.
Airbnb constitutes a major added competitor in the hotel and lodging industry, thus causing or exacerbating consequences of an over-saturated market.
Disruptive innovation, which
sustains economic growth
, often leads to creative destruction. That's just a part of human and economic progress.
The success of Airbnb despite the lack of regulation indicates that regulation is not needed to protect consumers.
As a general principle, the government should interfere with the market as little as possible - preferably not at all.
Short term apartment leasing is currently illegal in New York but many people are still doing it. This shows that prohibition does not work.
Regulation at the city level is too broad and 'one size fits all' — it makes the assumption that all neighborhoods and buildings hold the same values, when in reality some have problems with the effects of short term leasing and others do not.