Commentary |
Airbnb is driving up housing costs for all of us


In the early years, staying in other people’s houses felt like an act of rebellion against corporate hotel chains.


by Sonali Kolhatkar



Americans have been on a vacation binge since the easing of COVID-19 restrictions. In particular, the vacation rental company Airbnb is thriving. Late last year, the company posted its highest-ever profits.

Sonali Kolhatkar
Meanwhile cities are seeing rising rents, unaffordable home prices, and increased homelessness. Authorities are now linking these crises in part to Airbnb — and some now are passing strict regulations.

Just as companies like Uber were once touted as a way for working people with cars to earn a little extra spending cash, Airbnb offered the promise of supplementary income for those with an extra room or converted garage.

I’ve rented several Airbnb homes over the 15 years since the company was founded. In the early years, staying in other people’s houses felt like an act of rebellion against corporate hotel chains. The privacy, convenience, and often lower cost enabled tourists with tighter budgets to enjoy family vacations that otherwise might have been unavailable.

Now, however, the market is increasingly dominated by a small number of corporate “hosts” and professional property managers — wealthy elites and corporate entities that scoop up large numbers of properties and turn big profits by renting them out to travelers.

And that’s driving up housing costs for everyone.

Stephanie Synclair, a 41-year-old Black mom from Atlanta, recently made the news for becoming a home-buyer — not in her hometown, but in Palermo, Sicily.

In spite of having a budget of $450,000 — no small sum — Synclair had no luck buying a home in Atlanta, where properties are among the most overpriced in the nation. Atlanta’s housing market is dominated by investors and cash-rich corporations who scoop up practically every home listed at $500,000 or less, many of which are then transformed into Airbnb listings for tourists.

So Synclair now plans to retire in her $62,000 home on the other side of the planet instead.


out of the way home
"Staying in other people’s houses felt like an act of rebellion against corporate hotel chains," Kolhatkar said. Affordable, off-the-beaten path rentals once had their quirky charm until corporations invaded the short-term rental market.

Photo: Theo Rivierenlaan/Pixabay

A 2017 study of New York City by the watchdog group Inside Airbnb concluded that the Airbnb model also fuels racism in the housing market. “Across all 72 predominantly Black New York City neighborhoods,” the group found, “hosts are five times more likely to be white.” But the “loss of housing and neighborhood disruption due to Airbnb is six times more likely to affect Black residents.”

To curb such inequities, New York City, which already had strict rules about short-term rentals and subleases, passed a law in 2023 requiring Airbnb to ensure that hosts obtain permission to rent out housing. If it fails to do so, both the host and the company are hit with hefty fines.

While this means potentially higher hotel costs for out-of-town visitors, it could also free up rentals for long-term residents. According to The Guardian, this may already be happening, just months after the law went into effect in September.

While cheaper vacation stays are certainly desirable for those of us who love to travel, vacationing is a privilege in the U.S. More than a third of Americans, a 2023 survey found, are unlikely to take a summer vacation. And of those, more than half say they simply can’t afford it.

A 2019 Economic Policy Institute study pointed out that “Airbnb might, as claimed, suppress the growth of travel accommodation costs, but these costs are not a first-order problem for American families.” What is a first-order problem is affordable housing.

While regulating Airbnb will not mitigate all economic injustices facing Americans — such as suppressed wages and a lack of government-funded health care — it certainly will move the needle in the right direction.


Sonali Kolhatkar is the host of “Rising Up With Sonali,” a television and radio show on Free Speech TV and Pacifica stations. This commentary was produced by the Economy for All project at the Independent Media Institute and adapted for syndication by OtherWords.org.

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To AirBnB or not: Is it really better or not worth the risks

SNS - The debate about using Airbnb or not has become increasingly significant in the evolving travel landscape. Airbnb, since its inception, has disrupted traditional lodging by offering unique, often more affordable alternatives to hotels. This platform connects travelers with local hosts, providing plenty of accommodation options, from shared rooms to luxurious villas. Yet, as it grows in popularity, it also faces scrutiny and concerns.

Photo: Ready Made

We will discuss the merits and pitfalls of choosing Airbnb over traditional hotels. We will examine cost-effectiveness, variety, and comfort versus the potential legal, safety, and quality risks. Our goal is to provide a comprehensive look at both sides of the coin.

The Appeal of Airbnb

Cost-Effectiveness
One of Airbnb's most appealing aspects is its potential for cost savings. Compared to hotels, they often offer more space and amenities for a lower price, especially in major tourist destinations.

This affordability is not just for budget travelers. It also extends to luxury seekers who can find high-end properties at competitive prices. Airbnb's pricing is dynamic and can change based on demand, season, and length of stay. People can leverage these fluctuations to secure deals, particularly for longer stays where hosts often provide substantial discounts. This flexibility in pricing allows a wider range of travelers to explore destinations that might have been out of reach due to high accommodation costs, thereby democratizing travel experiences.

Unique and Diverse Accommodations

Photo: Matheus Bertelli/PEXELS

Airbnb's portfolio boasts an incredible diversity of properties, catering to every imaginable taste and need. From urban apartments in the heart of big cities to secluded treehouses in tranquil settings, it offers incredible experiences. This variety enables travelers to customize their stay according to their preferences, be it a desire for local charm, luxury, or bringing pets along.

These properties come with personal touches and stories from hosts, adding a layer of cultural immersion to the local community. This aspect of Airbnb enhances the experience and fosters a deeper understanding and appreciation of the destination, making each stay unique and memorable.

To Airbnb or Not: Concerns and Risks

Legal and Regulatory Issues
The legal framework surrounding Airbnb is complex and varies significantly across different regions.

In some cities, strict regulations have been imposed on short-term rentals, including registration requirements, limits on the number of rental days per year, and even outright bans in certain areas. These regulations often stem from concerns about housing shortages and the impact of short-term rentals on local communities. Travelers need to be aware of these laws to avoid fines or legal complications. In some cases, neighborhoods or condo associations have their own rules regarding Airbnb rentals, adding another layer of complexity. Navigating this patchwork of regulations can be challenging, making it essential for everyone to research and stay informed about the legal landscape of their destination.

Safety and Security
Safety concerns are a crucial aspect of considering whether to use Airbnb or not. While the platform has implemented various measures to enhance guest safety, including a review system, verified photos, and host identification, incidents of scams and unreliable hosts still occur.

Guests may encounter issues like inaccurate listing descriptions, unresponsive hosts, or, in extreme cases, unsafe accommodations. To mitigate these risks, it is advisable to thoroughly vet properties by reading reviews, communicating clearly with hosts, and being cautious of deals that seem too good to be true. Additionally, Airbnb provides a support system for guests to report issues and seek assistance, but resolving conflicts can sometimes be less straightforward compared to dealing with established hotel chains.

The Traditional Lodging Experience

Reliability and Standards
Hotels are synonymous with reliability and consistent standards. From well-known chains to boutique hotels, guests generally know what to expect in terms of room quality, amenities, and service. This consistency removes the guesswork and potential anxiety associated with Airbnb's variability. Hotels are staffed with professionals trained in hospitality, ready to address guests' needs and resolve issues promptly. This level of service, combined with standardized safety protocols, provides many travelers with a sense of security and peace of mind. What’s more, loyalty programs and predictable pricing models make hotels an attractive option for frequent travelers who value familiarity and a consistent level of service.

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Amenities and Services
Hotels distinguish themselves with various amenities and services designed to enhance the guest experience. Facilities like gyms, swimming pools, spas, on-site restaurants, and bars add value, convenience, and an element of luxury to a stay. Services such as daily housekeeping, room service, and concierge can significantly elevate the comfort and ease of travel. These amenities are particularly beneficial for business travelers needing reliable Wi-Fi, meeting spaces, or last-minute assistance. The availability of these services ensures a level of care and convenience that can be hard to replicate in an Airbnb setting. However, it is usually a lot costlier and not for everyone’s budget.

Tips for a Safe and Enjoyable Airbnb Experience

Researching and Selecting the Right Property
A successful Airbnb experience often starts with thorough research and selecting the right property. This involves more than just browsing through listings; it's about understanding your specific needs for the stay. Paying close attention to reviews from previous guests is also super important. Look for comments about cleanliness, the host's communication, and the accuracy of the listing description.

For instance, if you’re planning a longer-term stay in the Mississippi area or relocating as part of a work assignment, you might have additional considerations, such as storage space for personal belongings. For longer stays, you might need extra storage, and if your chosen accommodation ticks all the boxes but lacks storage space, you might need to make additional preparations. In such cases, local services like Spyder Moving Mississippi can be invaluable. They are known for providing safe and clean spaces for your items, and according to many satisfied clients, their prices are affordable and well-balanced. This ensures a clutter-free and comfortable stay at your Airbnb.

Conclusion

Finally, the decision to use Airbnb or not is a complex one shaped by personal preferences, travel needs, and the specific circumstances of each trip. Airbnb offers the allure of cost savings, unique accommodations, and home-like amenities, but it also brings challenges in terms of legal complexities, safety concerns, and inconsistent quality. Conversely, traditional hotels provide reliability, standard services, and amenities, albeit often at a higher cost and with less local flavor. The key lies in understanding what you value most in your travel accommodations. Based on that, you can make an informed choice that aligns with your travel goals and expectations.



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