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Detroit Quietly Bans Airbnb (curbed.com)

A new zoning ordinance that quietly went into effect this week has residents trying to figure out what comes next for Airbnb's presence in Detroit. Many hosts have received notices that the city has outlawed Airbnb for R1 and R2 zoning. Curbed Detroit reports: The new zoning ordinance apparently went through the Planning Commission and City Council in 2017, and went into effect this week. The text added to the amendment states: "Use of a dwelling to accommodate paid overnight guests is prohibited as a home occupation; notwithstanding this regulation, public accommodations, including bed and breakfast inns outside the R1 and R2 Districts, are permitted as provided in Sec. 61-12-46 of this Code." The vast majority of Airbnb units in Detroit are in R1 and R2 districts. These do not include places like lofts, apartments, or larger developments. Airbnb has issued a statement saying: "We're very disappointed by this turn of events. Airbnb has served as an economic engine for middle class Detroiters, many of whom rely on the supplemental income to stay in their homes. We hope that the city listens to our host community and permits home sharing in these residential zones."

18 of 197 comments (clear)

  1. Darn and I wanted to visit Detroit! by blahbooboo · · Score: 4, Funny

    Well there goes the big vacation I had planned for beautiful downtown Detroit..

    1. Re:Darn and I wanted to visit Detroit! by PopeRatzo · · Score: 5, Informative

      Well there goes the big vacation I had planned for beautiful downtown Detroit..

      You might be surprised to learn that lots of Detroit has been coming back strong since like 2010. Neighborhoods that were all but abandoned are showing signs of growth and there are lots of areas that are experiencing a full-scale renaissance.

      Back in 2017, I visited there for 10 days to give some lectures and participate in a symposium and I got to see areas of the city where I never would have gone ten years ago. I was surprised at how nice it was and how optimistic many of the people who live there have become. There is a vibrant arts community and people really have a community feeling. Detroit will be back.

      Because I love you all, here's a little something for you to groove to while you're pondering the Detroit Renaissance:

      https://youtu.be/yotCw66_G1g

      --
      You are welcome on my lawn.
    2. Re:Darn and I wanted to visit Detroit! by Balthisar · · Score: 3, Interesting

      Conceived of in 1971 and opened in 1977, the Renaissance Center was heralded as the Renaissance of Detroit. I only bring this up because I find it interesting that you chose the wording "Detroit Renaissance."

      Detroit's important symbolically to my region (SE Michigan), and I think that most of us would like to see it "come back," at least as far as the city center is concerned. Realistically, it should probably un-anex most of the communities it absorbed over the last 100 years and concentrate on its strengths.

      Right now, "Detroit" as a legal entity kind of drags down the region as a whole, which is unfortunate because we're all "Detroit" (as far as the country is concerned), but we don't exhibit Detroit's problems, as far as the political entity is concerned.

      --
      --Jim (me)
  2. Sacre Bleu!!! by Vinegar+Joe · · Score: 3, Funny

    Wherever will I stay when I visit "The Paris of the Midwest"??? Dearborn???

    --
    "The average reporter we talk to is 27 years old......They literally know nothing." - Ben Rhodes
  3. Not so sure about this by rsilvergun · · Score: 3, Interesting

    I don't like AirBnB. They drive up home prices and contribute to making home ownership unaffordable. They make it practical for investors to 'park' their money into real estate and keep houses off the market. There's a great case to be made for banning them in any competitive housing market

    But isn't Detroit the furthest thing from a competitive housing market? Then again, while a lot of the city is in ruins for all I know the number of actual livable houses might be smaller. Lord knows nobody's going to build there.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Not so sure about this by Anonymous Coward · · Score: 2, Interesting

      I live in a neighborhood with one house that is full time AirBnB, and the other two have guests intermittently(a lot). I can tell you this. Get ready for your on street parking to turn into a clusterfuck that it wasn't before. Now there is a constantly changing inventory of cars, taking up all the on street parking in my neighborhood because now people want to turn their houses into motels. Imagine if these were full time "guests" or roommates. Then a least it would be the same cars, that usually(because that is what people do) park in the same places and people know whose cars they are.

      This influx of random cars causes problems every week with trash pickup and in the winter, snow removal. It's a mess!

    2. Re:Not so sure about this by Ichijo · · Score: 2

      They make it practical for investors to 'park' their money into real estate and keep houses off the market.

      Then allow rentals only in owner-occupied units.

      And switch at least partially from property taxes to land value taxes in order to discourage banking of vacant land and end the reverse subsidy of suburban middle-class single-family homes at the expense of poor inner-city residents.

      And if you're really concerned about home affordability, allow cities to upzone heavily trafficked residential streets (the ones you don't want your children to play on anyway) for multifamily homes in order to drive down home prices by flooding the housing market. You can further reduce rents by about $100-200 per month by abolishing minimum parking requirements.

      --
      Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
    3. Re:Not so sure about this by Pfhorrest · · Score: 4, Insightful

      The exact same thing is true of rent in general. Which isn't an argument for AirBnB, it's an argument against rent in general.

      --
      -Forrest Cameranesi, Geek of all Trades
      "I am Sam. Sam I am. I do not like trolls, flames, or spam."
    4. Re:Not so sure about this by Wrath0fb0b · · Score: 2

      If the housing market is competitive then shouldn't the hotel market also be competitive? And if they are both independently competitive, shouldn't they cross-compete for space?

      In other words, if there is X marginal demand for 1 more hotel room and Y marginal demand for 1 more apartment to rent, why is it a given that a unit that was an apartment previously must be so forever? And the same for hotel rooms?

      Also, investors that are parking their money in real estate aren't leaving them empty, right? They are actually being used as hotel rooms, which reduces demand to build a new hotel that would otherwise accommodate that demand.

      Actually, I take that back. The hotel market is not competitive because cities have for a long time been slack about building enough new hotels to meet demand, instead letting existing incumbents raise rates.

  4. Just buy by Dan+East · · Score: 5, Funny

    Detroit has 31,000 empty houses. Wouldn't it just be cheaper to buy a house to stay in for a few days and burn it down or something when you're done with it?

    https://en.wikipedia.org/wiki/...

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    Better known as 318230.
    1. Re:Just buy by Locke2005 · · Score: 2

      Many of those houses have been stripped of all metals and are in very poor repair. They have all also been disconnected from electricity, sewer, and water service, and restoring service likely costs more than the value of the property. So, while they are cheap, you probably don't want to stay in one!

      --
      I've abandoned my search for truth; now I'm just looking for some useful delusions.
  5. Re:Whence comes this authority? by BlueStrat · · Score: 3, Insightful

    Where does the city get the authority to tell people that they are not allowed to rent out their homes?

    According to the American theory of governance, a government only has authorities that are delegated to it by The People. Well, nobody in Detroit ever had the authority to dictate whether a private individual could rent out his home, so there's no way that anybody was ever able to delegate to the city such an authority.

    Whence comes this authority, I ask. WHENCE?!

    "Political power grows out of the barrel of a gun" -- Mao Zedong

    The reality is that they can do anything they damned well please until and unless someone with more guns either convinces them to, or makes them through force, stop. It sucks and puts people in general in a position with no really "good" choices, but there it is.

    It's bad enough when those in power are generally relatively indifferent, but when they become more aggressively authoritarian, then the really bad shit starts. I think we're at the beginning of, or nearly so, of the second stage...if not already well on our way.

    I don't have any answers, all I can advise is to be certain of your principles by doing your own homework and not blowing it off or taking other people's opinions as your own, and stick to those principles *especially* when doing so may be really hard or unpopular to do.

    Strat

    --
    Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  6. Re:Whence comes this authority? by Anubis+IV · · Score: 3, Informative

    nobody in Detroit ever had the authority to dictate whether a private individual could rent out his home

    Sure they did. They had that authority over their own homes, which they voluntarily ceded to the city whenever they gave it the ability to zone. Whether via its charter or subsequent legislation, that zoning authority would have come from the people themselves, and once you establish a city with the ability to zone, you necessarily also grant them the authority to restrict commercial activities in residential zones, which is exactly what they're doing here.

    It's the same principle that allows HOAs and the like to establish deeds and covenants that restrict these sorts of practices. As a homeowner, you agree to abide by those deeds and covenants when you enter the neighborhood, thus ceding your authority in that area to the HOA. In my area, quite a few of the neighborhoods have restrictions on how many unrelated people are allowed to be under one roof, specifically to prevent the 70,000 college students we have in town from turning family-friendly neighborhoods into student housing.

  7. Re:Dil by Pfhorrest · · Score: 4, Insightful

    If you own property to rent out, you are not poor.

    --
    -Forrest Cameranesi, Geek of all Trades
    "I am Sam. Sam I am. I do not like trolls, flames, or spam."
  8. Re:Who does this help? by Obfuscant · · Score: 3, Interesting

    A property should be able to do most anything they want with their property, including deriving profit from it as much as possible, that's a reason you OWN property in many cases.

    So I'll buy the house next to yours and open a disco. I can do "most anything I want", right? During the day, it will be an auto-repair shop, with vehicles pending repair parked in all the on-street parking. If you are in the right state, I'll also operate a dispensary and grow operation.

    Zoning laws exist for a reason. Residential is residential, not commercial, for a reason. If you own a house you might appreciate that differentiation.

    that's a reason you OWN property in many cases.

    That's not the main reason most people own residential property, especially R1 or R2. They own it to live there. That's why it is single and two family zoned. And they want to be able to sell it for a reasonable price when they move away and not have to take a loss because the next door neighbor is operating a business next door.

    and there are ALWAYS winners an losers in life.

    Some of the "losses" is living in a residential zone and living by residential zoning rules. Although most people would consider it a win considering property values.

  9. Re:Good, fuck AirBnB - not at all. by R3d+M3rcury · · Score: 2

    Agreed! I mean, who needs clean water!?

  10. Re:Whence comes this authority? by TuballoyThunder · · Score: 2

    IANAL, but I don't think the property owners gave up any rights--they did not have the rights to begin with. Property ownership in the United States is fee simple. Under fee simple, the property owner does not have ultimate ownership and the state has a superior claim (allodial title).

  11. Re:Whence comes this authority? by jwdb · · Score: 2

    They consented to it when they bought a house in an area that fell under zoning laws.

    Real estate always comes with various strings attached. It's the buyer's duty to figure out what those are before they buy.