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What Airbnb Did To New York City (citylab.com)

An anonymous reader shares a report: There are two kinds of horror stories about Airbnb. When the home-sharing platform first appeared, the initial cautionary tales tended to emphasize extreme guest (and occasionally host) misbehavior. But as the now decade-old service matured and the number of rental properties proliferated dramatically, a second genre emerged, one that focused on what the service was doing to the larger community: Airbnb was raising rents and taking housing off the rental market. It was supercharging gentrification while discriminating against guests and hosts of color. And as commercial operators took over, it was transforming from a way to help homeowners occasionally rent out an extra room into a purveyor of creepy, makeshift hotels.

Several studies have looked into these claims; some focused on just one issue at a time, or measured Airbnb-linked trends across wide swaths of the country. But a recent report by David Wachsmuth, a professor of Urban Planning at McGill University, zeroes in on New York City in an effort to answer the question of exactly what home sharing is doing to the city. [...] Their conclusion: Most of those rumors are true. Wachsmuth found reason to believe that Airbnb has indeed raised rents, removed housing from the rental market, and fueled gentrification -- at least in New York City. "

11 of 340 comments (clear)

  1. Fix it with some careful regulation by mysidia · · Score: 4, Interesting

    transforming from a way to help homeowners occasionally rent out an extra room into a purveyor of creepy, makeshift hotels.

    How about this: create a law that Limits the number of housing units AND number of days rented out per year which any 1 person or business is allowed to make available for short-term rent without a Hotel permit for each property --- including through any number of business partners or related entities.

    So if you're a homeowner and have 1 or 2 properties which you rent out less than 80% of the year total across your properties, then FINE, allow that ---- You're allowed to have up to a total of ONE rental unit for short/temp housing accommodation (Count that includes Any and all sub-rentals across all properties that occur for a time less than 20 days) rented out 80% of the days each year, OR two housing accommodations rented out average 40% of the days per 1 year per unit, OR three housing accommodations rented out no more than average 26.67% of the days per 1 year per unit.

    (In other words: the more units that are rented out to different tenants, the fewer days you may be renting them out per year.)

    Thus if you have 3 properties in the same city Or have it rented out your properties for a combined total among your properties of more than 290 rental-days, then you're in a "Short-term accommodation business" and must have planning approval and permit your properties as Hotel space --- which if approved by Zoning includes regular inspections, and an additional Tax on each rental.

    Reasonable regulation should allow reasonable rental revenue by an ordinary homeowner BUT prevent wealthy real-estate investors or corporations from exploiting Uber to make large-scale transformations of apartments to hotel rooms, etc.

    1. Re:Fix it with some careful regulation by TechyImmigrant · · Score: 3, Interesting

      People love to invent rules for [society]

      That's what you do when you see a problem. You curb it. Hell, people "invented rules" about privatizing the commons, and we got an agricultural revolution. People also "invented rules" about having to serve black people the same as white people in a restaurant. Rules can be forces for good.

      I've spent a significant part of my career making rules. Good, clear, unambiguous, effective and enforceable rules are usually not trivial to create and deserve at lot of thought and review. This is slashdot, People fantasize about new rules for breakfast.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    2. Re:Fix it with some careful regulation by jonsmirl · · Score: 3, Interesting

      The root of SF's problems is decades of government interference in the housing market. Adam Smith's invisible hand would sort everything out if the government would stop holding it back. Market forces work at all levels, if there are not enough restaurants to satisfy demand prices will rise and workers will get paid more. Everything falls apart when people in the government think they are smarter than the invisible hand and enact laws supporting their social agendas. There is an obvious correlation in America with city governments that interfere with the housing market and problems in those same cities with housing the poor. In general the more the government interferes to worse it gets for the majority of the poor, select segments of the poor benefit from government interference, but those not selected get hurt a lot more.

    3. Re:Fix it with some careful regulation by Anonymous Coward · · Score: 2, Interesting

      Why is this a bad thing? It is called capitalism.

      No, this is a new and quite skewed form of capitalism ... because it's one or two companies pooling vast numbers of private renters, for which there is no analog.

      It's not like one entity bough a large amount of properties and then rented them, this is basically collecting a bunch of people and saying "hey, if you all rent your properties and give us a cut, we'll all be rich". The owners effectively provide the capital to what is effectively some tech people ... but the tech people do very little to earn their cut.

      Let supply and demand function without interference in order to establish a market level price.

      Ah, you've totally bought into all of the lies, so therefore will be irrational.

      The problem is the "market" is a disparate bunch of greedy assholes, all of whom would probably lie, cheat, and steal to maximize profits. The market doesn't arrive at optimum solutions because the players are dishonest and the consumers have imperfect information.

      What you're saying effectively "we should let assholes like Donald Trump set the price of real estate".

      The reality is, unfettered capitalism is bad for society. Sure, it makes some people rich, but it also chews up everyone else and grinds them to dust. We're all tired of being at the mercy of rich assholes, and having policies which is designed to profit them at the expense of everyone.

      There is no free market. There never has been, and there never will be. What's idiotic is expecting the market to achieve any outcome other than "the greediest and most unscrupulous wins the game".

      In countless cities, AirBnB has the effect of making housing more scarce and un-affordable. I've heard stories of condos where exactly one owner lives there, and the rest just rent them. This harms the people who actually live in that city, so that a small number of people can profit off tourists ... and actually removes rental properties from the market.

      Turning property zoned for residential, and effectively turning it into commercial property bypasses property tax issue (your commercial property pays more than your home), and makes the units unavailable for people who need homes to live in ... effectively, AirBnB is an externality to the system which fundamentally alters the housing market.

      So, please, be welcome to pay commercial property tax after you have duly had your property re-zoned commercial instead of residential. If you want to run your apartment as a business, you should be paying the income tax, property tax, business licenses, and additional infrastructure costs for that dwelling. Otherwise, in the case of a condo, you're expecting the other owners to fund your business.

      This entire 'sharing' economy is about large companies getting other people to pay the operating costs, and in the case of AirBnB, those costs cover lots of impacts t other people. Like if they can't find a home to live in because everyone in the neighborhood is running a commercial rental without being treated as such.

      This so fundamentally alters the supply and demand equation as to provide one group of people an unfair advantage over the rest.

      This isn't a free market issue, because this is fundamentally changing the nature of the market. That has terrible outcomes for cities. The people renting out their properties are suddenly operating under different rules than everyone else. And the companies like AirBnB make money without paying any of the costs that a hotel company would normally pay.

      Sorry, no, being a tech company with an app doesn't exempt you from the rules. Not for Uber, not for AirBnB.

  2. Studies by 110010001000 · · Score: 3, Interesting

    The problem with these types of studies is you will never know if they are correct or not, because there is no way to see what would have happened if Airbnb never came to NYC. Maybe it would have gentrified faster without Airbnb. NYC was gentrifying way before Airbnb came to the city. Of course, speculation is now presented as fact. That will make the funders of this study (the hotel industry) happy though, and that is what this is all about anyway. They can now push to get Airbnb out of NYC.

  3. wrong target by supernova87a · · Score: 4, Interesting

    Look, don't blame Airbnb, Uber or whatever company happened to come along in this moment, for all your woes. What you're actually mad at is the absolute failure of our governments, public institutions, and elected officials to adapt their services and approaches (or be allowed to do this by a public that seemingly wants to vote by popularity contest rather than efficacy of government).

    Get mad at your fellow city residents who only vote in and approve of city ordinances that let housing stagnate, reward people who've just been here a long time and nothing else, foster complacency and lack of quality in taxi regulation, or believe that voters should have a say in everything and vote out people who happen to implement one rule they don't like.

    Get mad at policymakers who are too distracted with getting re-elected and resisting PAC money to actually focus on governing and making reasonable policies, leaving our basic infrastructure to crumble while they go after higher profile symbolic issues.

    Be mad at yourself, and this system we thought was the best in the world, but actually needs maintenance and dedication to make it work properly.

    Companies are just the messengers.

  4. Meanwhil AirBnB pretends Social Justice Champion by Atrox+Canis · · Score: 1, Interesting

    I used AirBnB a few times about 4 years ago. But I got turned off by them when they pushed their updated EULA that required me to promise that I would not be a dick to people. The word salad they used was a great deal more hipster and included phrases meant to make them look like they were the perfect little SJW's. Bottom line is that I don't need some company preaching to me that I have to behave a certain way or I can't use their product. Fine, I'll do both. I'll continue to be a nice person and I won't use their product.

    Honestly though, it wouldn't bother me if AirBnB is discovered to be a social evil and ends up at the mercy of government regulation or simply goes out of business. They demonstrated a great deal of hubris with that EULA demand and if you choose to believe this survey, appear to be worse than the people they wanted to socially engineer. And I still don't miss using their product.

    --
    Charter Member of The Committee Group For The Elimination And Eradication Of Repetitive Redundancy
  5. Airbnb is a scam by MeNeXT · · Score: 4, Interesting

    Airbnb takes commission on both sides and when there is a major problem to deal with they disappear.

    If you are lucky enough to book with a decent host you may get what you pay for. Unfortunately when you book with a scammer you are on your own. There is absolutely no help provided from Airbnb. This is based on my personal experience traveling for 30 years so your mileage may vary.

    No business is perfect. This is not about perfection. This is bout what happens when things go wrong. You are thousands of miles away and may have limited funds available or in a completely different culture where communication is not easy.

    Normally with a regular permitted establishment you can verify various independent reviews. On Airbnb only positive reviews are posted. You only find this out when things go wrong. Airbnb does not post negative reviews even though you paid for the full stay.

    Permitted establishments normally are inspected by local authorities which try to ensure a minimum standards. This does not mean that something won't go wrong but there is a bare minimum such as fire regulations. Information posting. Emergency exits. With Airbnb you are no even guaranteed that there will be a place to stay. Again Airbnb takes very little responsibility as to the accessibility or even to the legality of the rental. They haven't even visited the location to ensure that it is fit for the purpose advertised.

    So Airbnb takes commission on both sides of the deal and provides none of the advantages afforded from the regulated and established lodging hosts and when things go wrong you are left abandoned and screwed. The horror stories haven't disappeared they are just pushed under the rug. If it's so bad that the local authorities are left to deal with it, you may hear about it. You can't post negative reviews on Airbnb.

    Airbnb is not a sharing service since you are not required to live with current occupants and takes advantage of the increased costs of regulations which it does not abide with and wipes it's hands from all and any responsibility when things go terribly wrong. Airbnb pretends to be a listing service but implicates itself in every aspect of the business which milks every possible penny and extracts itself from any form of responsibility. I don't know why anyone needed a report to point this out if an individual acted this way people would say that they were running a scam.

    --
    DRM? No thanks, I'll just get it somewhere else...
  6. Re:So we need different hotel regulation? by MeNeXT · · Score: 4, Interesting

    Hotels have regulations to follow which Airbnb washes it's hands. Airbnb doesn't care about negative reviews because you can't post them. When things go wrong Airbnb doesn't care, doesn't allow you to post about it on the site, and doesn't refund the payments. It has to hit the media in order for Airbnb to react. When it does hit the media the wash their hands of it by claiming to delist the owner only to find them back again a few months later.

    Regulations should apply to all or to none. If Airbnb is a listing service then travelers shouldn't have to pay commission. If travelers pay commission then Airbnb is the travelers agent and should be responsible for the state of the destination as a travel agent is in some jurisdictions.

    --
    DRM? No thanks, I'll just get it somewhere else...
  7. 'Gig' Economy vs Full-Time business by Marc_Hawke · · Score: 4, Interesting

    The thing I've always 'disliked' about 'room-sharing' and 'ride-sharing' (and I guess to some extent E-bay and Youtube) is that people make it a full-time job instead of a 'community' thing.

    I don't remember the taxi company complaining about the 'ride-sharing' board at the University. If you were going home for the weekend, why not take along a passenger that was going the same way. In general that's the basic idea of Uber and Lyft. I have a car, you're going my way, hop in.

    There was also the 'couch-surfing' phenomenon of a while back. The differences between that and what AirBnB is now are what I see as the problem. It's one thing to allow someone to spend the night in your empty guest room because nobody else is using it. It's a completely different thing to buy a room/ apartment/ house dedicated to having people pay to stay there.

    The 'problem' with Uber and AirBnB is that people have transformed the 'occasionality' of it into a permanent full-time job. It's not a sporadic and almost random thing they offer, it's 'the only thing.'

    --
    --Welcome to the Realm of the Hawke--
  8. on the other hand... by buddyglass · · Score: 4, Interesting

    ...I was able to stay two weeks in NYC with my family (2 adults, 2 kids) in a clean 1200 sq. foot. two-bedroom apartment in Washington Heights for $120/night. Comparable hotel would have cost me $300/night at least. And my (14 nights * $120/night) went mostly into the hands of an actual family living in NYC (two public school teachers with 2 kids of their own) instead of, say, "Hilton" or "Marriot".