81–90 of 161 posts
Unfortunately, Airbnb is probably the only way a middle-class family can earn money on investment properties. No one in their right mind would rent a $1,000,000 condo for (1% rule) $10,000.
Is there really much evidence that the majority of Airbnb properties would otherwise be traditional "12 month lease" rental apartments if it were not for Airbnb. I mean, I'm sure there are a few, but if I'm a landlord, why would I give up having a stable tenant paying market rate rent for 12 months at a time for essentially managing a hotel room? Sure, the 'rent per day' is going to be a lot better with the hotel roo…
However, in my neighborhood long term 12 month lease rentals most definitely seem to be being turned into Airbnb rentals. I live in Tahoe, so this isn't necessarily going to generalize to non-tourist areas. In the last five years there has been a steady conversion -- I personally know of four in my immediate neighborhood. (As in, they were long term rentals converted to Airbnb. I know the people that were kicked out of the long term rentals) When we'd recruit new people to Tahoe there used to be numerous options for local housing, things have gotten so bad that the company I work for opted to buy a condo to provide temporary housing for new recruits while they look for more permanent accommodations.
An additional (also anecdotal) data point: our realtor told us that investors looking to convert homes into Airbnb are very active right now.
On the plus side (potentially, not everybody agrees) Airbnb also seems to have converted a number of second homes that were previously unoccupied most of the year.
"For each 1 percent of all residential units in a neighborhood listed on Airbnb, rents in that neighborhood went up 1.58 percent, Stringer said." Correlation does not imply causation[1]. Looks to me this is one of the studies that I would label as "shallow" or "problematic". https://en.wikipedia.org/wiki/Correlation_does_not_imply_cau...
Repeating this cliche is not a counterargument to a regression analysis. If you have specific covariants that you think better explain their results, present them. Otherwise, "correlation does not imply cause" is little more than a lowbrow dismissal dressed in a labcoat.
Unfortunately, Airbnb is probably the only way a middle-class family can earn money on investment properties. No one in their right mind would rent a $1,000,000 condo for (1% rule) $10,000.
Unfortunately, Airbnb is probably the only way a middle-class family can earn money on investment properties. No one in their right mind would rent a $1,000,000 condo for (1% rule) $10,000.
So a million dollar condo would be 50K a year, or about $4200/mo, which is exactly in line with current nyc rents.
It's important to look under the surface of what this is saying. This boils down to an extra 77 dollars per person per year, so basically this amounts to an extra 10 dollars per month for any given unit.
If you divide by number of people in Manhattan (8.538 million) you get roughly $72.14 per person, but this isn't really accurate since not everyone in Manhattan rents- maybe you're a kid, or you own a co-op, or you're homeless.
You'd really need to divide the value by the number of rented units in NYC to figure out the average raise in rents per apartment, and even then that won't draw a perfect picture because many people live with roommates who contribute to rent.
I started picking out values from here: https://www1.nyc.gov/assets/rentguidelinesboard/pdf/17HSR.pd...
I don't know the nature of rent control that well in NYC so I'm just going to take a few approaches:
If we assume only unregulated apartments picked up the burden, the cost per unit is 725.80.
If we toss in the "other regulated" apartments, 546.42.
If we toss in all rent-stabilized (pre and post 46), it's 368.96.
All rented units together? $363.
Earlier quoted context omitted.
If you are dismissive of the pain of an extra $1, you are probably dismissive (and even more so) of the pain of an extra $0.14.
Ah, I didn't realize OP was arguing the $68/mo was insignificant . My mistake. I see $68/mo as a decent chunk of change (that's enough to pay for a new computer every two years or so) so that's probably where the confusion stems from.
It's a tangible amount, but if you're paid enough to live in that area, it's likely not a huge burden. And again, this is an change that is likely disproportionately raising rents in desirable and trendy neighborhoods that are more expensive than that already and likely seeing natural rent growth of more than $68.
If a few thousand airbnb units cost renters that much money, imagine how much renters would save if more and taller buildings were allowed to be built!
Does NYC impose heavy restrictions on the height of buildings? I've never been there, but they seem tall to me.
In addition to actual height restrictions, neighborhood associations also fight tooth and nail to prevent new development and to limit the height of new development when they can't.
[1] https://www1.nyc.gov/site/planning/zoning/districts-tools/re...
If a few thousand airbnb units cost renters that much money, imagine how much renters would save if more and taller buildings were allowed to be built!
Does NYC impose heavy restrictions on the height of buildings? I've never been there, but they seem tall to me.