Thousands of Airbnbs and other short-term rentals are expected to disappear from rental platforms as New York City begins enforcing tight restrictions.

The End of Airbnb in New York::Thousands of Airbnbs and other short-term rentals are expected to disappear from rental platforms as New York City begins enforcing tight restrictions.

    • Changetheview@lemmy.worldEnglish
      64·
      1 year ago

      It applies to anywhere. The problem isn’t one situation. It’s this same story, repeated thousands of times in every city across the globe.

      Bobby wants to live in a house. Monthly rent prices are usually around $1,000 per month in his home town.

      Joe wants to make money by renting out a house on AirBnb. Hotel prices are usually around $200 per night in the same location. If Joe rents out his house for just 10 nights a month, he can make $2,000. This easily covers Joe’s expenses and puts the extra cash in his bank account. If he rents it out for 25 nights, he’s putting away a lot of cash.

      When houses are up for sale, Bobby can only spend a similar cost as his rent. Joe has been watching his bank account climb and is ready to spend a lot on another house to put on AirBnb. Joe can make a profit even if the house is double the price.

      Bobby’s landlord sees housing prices rise. Decides to either (1) increase Bobby’s rent to $2,000 - which he can’t afford or (2) sell the house to someone like Joe for a major markup.

      Bobby has to move in with roommates and will never be able to afford to buy a home when competing against all the Joes out there.

    • pgpEnglish
      21·
      1 year ago

      Raises rent prices, overall cost of living and takes apartments from long term rental market.