Kialo requires cookies to work correctly.
Should short-term apartment leasing services such as Airbnb be prohibited in New York City?
Airbnb has increased the price of rent in NYC and in doing so aggravated the existing shortage of affordable housing.
The housing crisis caused by Airbnb causes particular harm to low-income members of the community.
Housing prices in areas where Airbnb is in use are likely to rise, given that people are willing to pay more for a property in the knowledge that they can use short-term leasing to bring in more revenue in the future.
in the US has shown that Airbnb drives rental prices up. It finds that a 10% increase in Airbnb listings leads to a 0.42% increase in rents and a 0.76% increase in house prices.
Rent rises negatively affect diversity in the city as they narrow the demographic who can afford to live there.
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.
Housing shortages and unaffordable housing prices in NYC are caused primarily by over-regulation, not Airbnb.
Rent prices are in constant, natural fluctuation due to a variety of factors. Prohibiting Airbnb would therefore have little effect on the overall, long-term nature of the supply and demand (and thus prices) of rented housing.
NYC has had an affordable housing crisis
since the 80s
(p.3), whereas Airbnb only emerged
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.
The main reason for housing shortages in New York is the city itself — it is so popular with travellers and professionals alike that demand for housing is nearly endless.
The real problem is with the current regulations, not with Airbnb. If these are adequately changed, Airbnb's positive effects could be enhanced while minimising negative externalities.