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Should short-term apartment leasing services such as Airbnb be prohibited in New York City?
Airbnb creates additional supply within the housing and accommodation market that would be otherwise unavailable.
Airbnb increases supply by allowing tenants to make productive use of a home they are not always occupying. This leads to a greater amount of housing stock to be available at any given time; easing the pressure on other sources.
Airbnb increases supply by allowing property owners to leverage otherwise necessary gaps in tenancies, such as when it is waiting to be sold, renovated, or leased on a long term basis.
Having a more flexible supply of housing (i.e. when hosts will often opt in and out of offering their places on Airbnb) allows the housing market to be more elastic as additional supply can be added to meet periods of high demand.
Short-term leases are more lucrative and financially promising for landlords than long-term ones. More and more landlords are thus likely to shift from long-term to short-term leasing, thereby
driving up rent prices
and reducing the supply of long-term accommodation.
Airbnb has commissioned and published studies in 3 different cities where Airbnb presence is perceived as very significant (
), arguing that its listings account for too few housing units to significantly affect rents or overall supply.