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The End of Airbnb in New York (www.wired.com)

submitted 1 year ago by L4s@lemmy.world to c/technology@lemmy.world

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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.

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[–] talos_the_true_god@lemmy.world 6 points 1 year ago (2 children)

ELI5: why is having airbnb’s a bad thing? ( not local, not in the loop )

[–] Changetheview@lemmy.world 64 points 1 year ago (1 children)

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.

[–] talos_the_true_god@lemmy.world 12 points 1 year ago

Got it, thanks!

[–] pgp 21 points 1 year ago (1 children)

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

[–] talos_the_true_god@lemmy.world 3 points 1 year ago

Thanks!