Sound Off: Do you expect a crash in the Airbnb market, and how might that impact real estate?
A: Data from AirDNA, a short-term rental (STR) analytics firm, has indicated demand growth of 19.8% year-over-year. Despite this increase in bookings, the number of STR listings on the market has increased sharply, leading to lower occupancy rates. Many properties are now facing vacancy and financial losses due to the lack of rental income.
Will we see a sudden influx of STR homes back on the market?
We’ll more likely see a pivot into long-term rentals. Here’s why:
• Locked in rates: Many of these homes were purchased with historically low interest rates. The rent could cover all the homeowner’s expenses.
• Housing supply is still low: The current demand for housing still outpaces home building which means a large pool of potential renters.
• Inflation: Homebuyers have been priced out, increasing rental demand and forcing higher rents. Also, investment properties have historically proven to be an excellent hedge against inflation.
Leo Peak, Peak Real Estate Group at Corcoran Icon Properties, 415-816-1469, leo@leopeak.com.
A: I love having access to an Airbnb kitchen when I travel.
Airbnb has become a housing controversy with the on-going housing shortage combined with occasional poor behavior of renters.
Cities across the country are actively hearing from citizens as to how these short-term rentals have reduced the long-term housing stock and allowed “the party culture” to negatively impact some of its citizens. Many cities are now requiring minimum 30-day rentals, confirmation that the property meets safety codes and registration as a rental.
These laws, if passed, can and will remove up to 10,000 units just from NYC, per recent estimates. Airbnb does remind owners to follow state and city laws, but the enforcement...