NYC Renters Paid Extra $616M Thanks to Airbnb, Study Says

I am not suggesting a ban on roommates of course, but it does seem like there are a large number of variables that affect rent prices. We could argue that AirBnB constricts long term housing supply while roommates constrict long term housing supply for single or family renters as well.

If a one bedroom goes for $4000 and there are two roommates, that means the price the market would support for a single person is $2000. So without roommates, the market would have to adjust to the price people were able to pay: $2000. But then again, that could also restrict supply since there are more people competing for a finite supply.

My point is that while it’s convenient to blame AirBnB — the truth is far more complex. We also have to consider the effects of the extra income earned by owners — that income goes to buying things or investing, which, it could be argued, benefits the economy. There is also the question of how many visitors to New York actually can now afford to visit New York because of wider housing availability — if we drive up lodging rates, that’s less money coming into the city. If I have to spend $250 for a hotel vs. $150 for an AirBnB, that means I can buy more pizza, thus putting more money into pizza shops and supporting those workers. Additionally, if a hotel is $250, maybe I don’t visit at all, which would result in 0 economic benefit to the city.

The economics of this aren’t as sound-byte friendly as many might think.

If we want to be fair, we should also address how much additional rent New Yorkers pay due to rent-control and the housing illiquidity that promotes.

If the hotel industry is so concerned, then perhaps they ought to reevaluate their efficiency and pricing and reconsider their years and years of charging $10 for a bottle of water. Perhaps the city could also reconsider the occupancy taxes, sales taxes and all the other fees cities love to stick tourists with.

Tourists already pay sales taxes when they buy a meal. They buy products and experiences which generate significant economic activity, jobs and all the tax revenue that creates. But for some reason, cities see tourists as a piggy bank rather than the engine of economic activity they are.

1) More money. Yes, stability is nice and all, and managing the reservations is annoying and/or expensive, but if the difference is big, people will choose it.

2) Renter-friendly laws. Here, if that stable leaser stops paying, it's a pain in the ass to get them out - you have to sue them in small claims court, and then have to go to another court to get an eviction order, which finally lets you kick them out. An Airbnb guest is only there for a few days, and after that they become a trespasser.

Rent stabilization rules may also prevent you from raising them as much as you could (though this is more a problem for longer than 12 month leases).

3) Fun. Some people I know really enjoy interacting with the guests and showing them around town :)