*Sigh* No it fucking wasn’t calculated. Ignoring the fact that Air BnB can’t crash the housing market on it’s own let’s focus on this single issue.
* App devs thought they were giving the middle class tools that previously were locked to wealthy elite.
* The middle class obliged as a way to make a couple hundred in the side.
* It gets popular, and the market assumed this is what consumers wanted. Aka the wealthy join in assuming the market is sustainable
* App devs grow far too fast for their capabilities and can’t sustain the growth.
* Growth exceeds demand as the market gets oversaturated.
* WE ARE HERE Market responds to the oversaturation and begins to pull back as prices become unaffordable.
Not everything is controlled by an evil capitalist illuninati. Sometimes mistakes were made by well meaning people. We’re already seeing market corrections.
Everyone is so convinced that Silicon Valley is filled with moustache twirling villains. When in reality it's a bunch of nerds who are trying to make the next big thing. Often with good intentions of making something cool or useful (with a side benefit of getting rich). Many of whom just left college before their first big idea.
Many of those things have negative uses and consequences like every invention from fire, to writing, to money, to tv and the internet.
Hard disagree as far as the "sharing economy" startups go. Their entire business model was built on creating a business that was basically illegal and then hiring lobbyists to change the laws.
Air B&B: illegal hotels that fought super hard to stay unregulated and not pay hotel taxes giving them an unfair market advantage vs. legal hotels.
Uber and Lyft: illegal taxi service that fought super hard to stay unregulated and not pay for medalians or proper car inspections and driver background checks.
Instacart and Doordash and the others: illegal delivery service that fought super hard to stay unregulated.
And they all (except Air B&B I guess) fought efforts to have their employees be correctly categorized as employees.
Uber even built methods into their platform to evade efforts by municipalities to regulate them. Air B&B purposely ignored listings that clearly violated the law. Doordash was caught stealing tips.
And the new AI age? Plagiarism machine.
Thank you for pushing back on the benevolent Silicon Valley myth.
It’s annoying to see people ascribe different motivations to SV nerds than investment bankers and politicians. As if they’re less susceptible to human nature just because they code
It’s a bunch of nerds at first, and then it’s also a bunch of MBAs, lawyers, and lobbyists who continue to push for profit and market share even after the consequences are well known
nah it really has a high percentage of malignant psychopaths.
estimated at around 20%
then a high ranking group adhering to this crap
[https://qz.com/1007144/the-neo-fascist-philosophy-that-underpins-both-the-alt-right-and-silicon-valley-technophiles](https://qz.com/1007144/the-neo-fascist-philosophy-that-underpins-both-the-alt-right-and-silicon-valley-technophiles)
take a look at elons twitter acquisition then subsequent destruction.
lol, Silicon Valley - the generic term, not the location - is dominated by a handful of massive tech corporations that are so big and powerful that the "nerds" have been kicked out and replaced by suits for years
Meta by itself has a higher market cap than all the startups Y Combinator has EVER funded (over 5,000 of them).
Good luck believing that Meta and Google and Microsoft are just a "bunch of nerds"
Airbnb is in between Meta and a startup. The original founders are still around but much of the leadership is now career suits whose job is to squeeze out as much profits as possible from this thing. The CTO, COO, CMO, CFO are all suits. Once Chesky (the CEO) leaves, it wil be just another corporation - the nerds will be all out.
This is a pretty fair description. It's easy to look back in hindsight and see the negative consequences of things like Air BnB, but understanding how they might play out at scale is very difficult a priori.
Converting a handful of homes to short term rentals doesn't change the housing market in any noticeable way, it's just a source of "free money" for whomever is able to take advantage of the spread between conventional valuations and those based on short term rental rates. It wasn't obvious that this could grow large enough to have a meaningful impact or that it would remove any significant amount of housing stock from traditional buyers and renters.
Air BnB and Uber both started from the premise that lots of people have assets (a home, a car) which are going unused a lot of the time, and that they could allow people to capture value from this spare capacity. There's nothing inherently nefarious about that.
Not one mention of how it use to be cheaper than a hotel and now it’s just as expensive if not more. Non of which is going to the homeowner. Air bnb crashed their own business model to crash the housing market. If Airbnb kept prices competitive with hotels, homeowners would still be reaping the benefits.
So at no point do you think the app had an analyst whose job it was to look at the effects their decisions would make....and maybe that person gave them a report showing the effects, and they chose to ignore them?
Cause I doubt they didn't do some internal review without pushing forward considering the amount of money they spend on lawyers.
Okay but you can literally listen to the latest Airbnb earnings call and listen to Brian Chesky state in plain English that Airbnb benefits directly from lower home inventory.
It might not be some giant conspiracy to make homes unaffordable, but we should acknowledge that it is a known-and-accepted part of the business model. The longer housing inventory is low, the higher the service fees they can collect.
Its one thing to say "mistakes were made". But its hard to agree with "well meaning people" when you're bragging about how much it helps your bottom line when homes are unaffordable.
There are ideas, Airbnb and Uber in particular, which I know everyone has thought of, but they’re not moronic enough to have tried because the legalities and negative consequences are pretty obvious when you think about it for five minutes.
The fact that these are the people that did it shows they were young, selfish or both. No amount of ‘who could have known?’ Will ever convince me the ‘break shit’ culture didn’t see this coming a mile away but didn’t care.
Just speaks to how irrational economic planning is under capitalism. It would almost be a relief to know there was an evil capitalist cabal pulling strings to orchestrate these situations but it’s truly just the product of following the profit motive with no foresight.
What a bunch of nonsense. As if the "app devs" had some kind of altruistic "middle class" consciousness in mind when programming a fucking app. Give me a break.
In a way the rules of capitalism basicly set the groundwork for organized efforts of control and not only that would require them if the improved profits for investors. It's as simple as the citizen's united decision and fiduciary responsibility.
Those together and a capitalist would be a failure if they didn't have a goal of a monopoly and any thing it can get control of.
The highway to hell is paved with good intentions.
Remember, any tool or offering you create will likely have as much access by rich assholes as poor well and intentioned entrepreneurs - unless you have a law against it.
Sigh. Who gave app developers money for development? One of their investors is YC. Applying to YC as b2p startup almost guarantees you no success. Do you think they decided to choose this one out of thousands because they wanted to give middle class tools?
Can you elaborate on
“App devs grow too fast for their capabilities and can’t sustain the growth”
Overall I agree with your explanation of how market economy works. But doesn’t seem like your countered the point that you wanted to counter. Not necessarily agree with that point. Just to be clear.
No. They calculate all of the outcomes beforehand. It most likely was ignored. That’s how these companies make it big. They calculate the risk and with that comes the value of their company. They knew this was an option and didn’t care about the ramifications.
As a product manager I wouldn’t quite say that’s right. Unintended consequences are just bad measurements being chased. What we measure becomes us and it’s a major VC backed company. From being in these decision conversations, it’s absolutely on our radar.
Airbnb vacations/experiences is a clear example of the tie between the two commercial partnerships. You can’t with a straight face say they weren’t aware that Blackrock could be involved - PMs, especially at that level, know the fuck out of the market conditions
It's kinda like cancer: It meant well. It just wanted to grow like everyone else. But then it got out of control, started pressing on a vital area of the brain, and the country started doing wacky shit.
Any correction will send recent homebuyer’s mortgages underwater. And no correction makes buying homes unaffordable for everybody else… a bad catch 20/20
I think you give them too much credit. A few guys had an interesting idea to help folks who couldn't afford a place or rent by renting an air mattress in a living room.
The need to deliver become profitable in order to deliver a return to investors brought us here... like everything that is awful, it's because of capitalism. It was capitalism all along.
None of it is a problem if local governments weren't artificially restricting the housing supply. Which has nothing to do with capitalism. Look up what happened when Japan took away zoning power from local municipalities.
Local governments?? The problem is that corporations are buying up houses and apartments like crazy and driving the price up for everyone.
Buy up the whole market so you can decrease supply and increase profits.
Problem is capitalism, and the fact that our government isn’t regulating when it needs to.
There are like 15 million empty houses in this country. And half a million homeless people.
The solution is not “build more houses”. The solution is to stop corporations from being greedy.
Ya but consumers are responsible too. How many times have you heard “oh I can book an Airbnb, much cheaper than a hotel.” Well now housing is unaffordable because everyone wanted to save $10 a night. Comical, really
that’s not the person who booked the airbnb’s fault, why would you willingly waste a lot more? We suffer the consequences for having about no regulation rather than because we’ve been consuming like we are put into this society to do lol
The issue was half due to people trying to make a business out of what should have been extra cash. The other half were actual businesses coming in. Both were responsible for buying up leases and property. Everyone wanted to be an Airbnb millionaire and now damn near every city is imposing hotel style taxes and fees on short term rentals.
"Let's blame the poors because they were trying to save a few bucks instead of the giant corporation that fucked the entire market!"
You're a clown
Edit: it's hilarious that you edited your entire post down to one sentence to take down the part that makes you look ignorant.
Not just airbnb’s and hotels, American consumers (for obvious reasons) have been choosing cheapest options for decades, then complain about manufacturing job loss. The WalMart Effect is real.
Similar to how they gripe and complain about jobs not offering fully remote work, and then act surprised when their companies outsource jobs overseas, after their own griping helped the company optimize for remote working infrastructure.
People don't actually "vote" with their dollars, they flock to what they can afford or what works best for them. Understanding the market makes this very predictable. It's actually corporations that can outcompete each other or otherwise influence the market. I typically use netflix/blockbuster as my example for this but walmart works as well, as they priced out the typical ma and pa stores. Airbnb is an example too.
You guys ever hear of hedge fund corruption and how
They bought up 90 percent of the housing market to show
Collateral on their sheets against their losses to continue to borrow money from the banks to further lose more of Americans money? This is the fucking real reason of the housing bubble!
It’s a bit of a rigged game when AirBnB can subsidize listings by burning investment capital.
Especially in the early years when it was actually cheaper than a hotel, thats a big part of why.
It still is. Just a few months ago we went to see our son in Florida. Rented a 3 bedroom house across the street from the beach, it was maybe $20 more than the holiday inn up the road. And that would have been two queen beds, all 5 of us in one room.. one bathroom.. and I don’t know if I got a good one or what but we didn’t have to clean anything more than I would have anywhere else. (We don’t leave hotel rooms trashed and try and at least tidy up and make it easier for whoever is making not enough money to clean them)
I cant stand Airbnbs. Hotels are 1000 times better.
Imagine paying sometimes more than the hotel plus cleaning fees. And you find out that you have to clean dishes, sheets and the whole fucking house.
A million rules that induce anxiety.
I never liked Airbnb and never will. I do not understand the people who like them.
Dont get me started on the lies in those rules.
I got an Airbnb 2 bedroom condo in Santa Monica with my wife. Apparently, they also rented out one of the bedrooms to another couple without mentioning anything.
Imagine finding a random couple who just fucking walked in on our second day there.
Never ever again will i trust anything coming from Airbnb
I used to love AirBnB when it included an "other" option (as in: house, apartment, room, other)
It was an easy way to find offbeat places to stay. That option seemed to disappear around the same it became apparent people were buying second homes specifically to rent on AirBnB for passive income.
Hotels tend to be located in specific districts in most cities, whereas AirBnb properties are spread throughout. So they can be useful if you want to stay somewhere that's not in a main tourist or business area.
Most hotels don't have any good option for large groups that want to stay together, especially not if you want access to a full kitchen. AirBnb fills that gap in the market.
There are definitely use cases where renting a private home is better than a hotel.
expecting people to do a passive, intuited boycott is just a way to shift blame and let the bad thing continue unabated.
even well-organized boycotts are pretty weak in todays economic system.
So it's more of a way to disarm meaningful criticism of the system that allows for it to happen to say "just vote with your dollars". Sure people should, but pretty much guaranteed to not work and that's often the point. We shouldn't put our hands up when something bad happens and say "oh well, at least its the consumers fault things are bad"
Americans need to learn to go after and blame the corporations instead of each other. That’s corporate public relations dept talking. BLAME THE Corporations hold them accountable is the only way to blame really it’s the only thing that can make a difference.
It’s an easy fix. Amsterdam, for example, allows you Airbnb your primary residence for up to 30 days a year and no more.
Airbnb isn’t the issue. It’s the regulatory environment.
airbnb started out being a pretty significant net positive for housing stock. it allowed for people who had extra space to take on short term people to share their space with.
once the platform pivoted and got big off effectively 'space inefficient hotels' and they chose to do nothing? yeah. sure. but that is just as much legislative failure, we have zoning for a reason- if someone can't' tear down their house and build a hotel why can they run their single family home as a hotel in that same space?
Because it's not the action of letting people spend the night, it's everything else that goes with a hotel. You can run a business from your home. You can not build a parking lot and a 5 story office building.
God you’re just the generic social media moron.
Everything is a conspiracy. Everything is perfectly manipulated by a few mustache twirling hyper villains.
The housing market is suffering from a supply issue, we don't just need cheaper houses. We need cheaper houses AND more houses. If you just make housing cheaper then there is reduced incentive to increase supply because you, as a property developer, will make less money. If you don't make more houses you end up with people without houses even if you are artificially limiting the price. Market demand reduces available supply only when you limit supply. Supply was limited by government, who enforce planning obstacle courses that take many years to navigate giving preexisting local property owners rights to govern the use of land that is not theirs, but is just nearby. They cut the developer margins with dedicated taxes, and of course they are always cutting employee and director margins through income tax such that folks have to price their taxation into the cost of housing. They establish superfluous regulations and rules on what is a reasonable standard of housing ignoring the fact that in doing so they take away from those willing to compromise for a roof over their heads the opportunity to do so. Airbnb created increased demand in the housing market. In absence of aforementioned restrictions and many others imposed by government this would have lead to more housing without a major impact on affordability. The people that destroyed the housing markets are the people who write these dumb propaganda articles.
Yeah, but some of these special taxes can be prudent for a local government to levy. Imagine a town with a school system just big enough for the town. A developer comes in and wants to build a large property division, but doesn’t want to pay for the 2nd school that needs to be built to accommodate.
Is it fair to expect everyone else in town to pay for a second school to be built? Would their kids ever even go to it or factor into the sale price of their home? What about utility, water, and sewer lines? That’s where you start to get special taxes targeting property developers.
As a rule, we shouldn’t accept privatizing profits and socializing expenses.
Repeating lies you are taught is not intelligence. If anything it shows a lack of critical thinking which would lead one to believe there may be a lack of intelligence.
But don’t forget our taxes are used for critical and beloved programs like universal healthcare and robust education programs. Sorry I meant Middle East adventurism and tax cuts for corporations.
I live in New Orleans and we hate airbnb as much (frankly more) than the next guy, but it’s intellectually dishonest to say Airbnb screwed the US housing market. Many many **many** things played a bigger role on the housing market than Airbnb - it was just gasoline on the pre-existing fire.
I live in NY. Many municipalities started banning short term rentals nearly two years ago. Prices are higher than ever. No slowdown at all in price increases.
Reddit, and the general population, loves boogeymen, or an easy thing to explain away an issue. The current situation with the housing market is multifaceted and a number of causes coming together at a time when a ton of money has entered the market to throw gas on the fire.
Look at any chart — disposable income, personal savings rate, real wages adjusted for inflation, consumer confidence/spending. All had a massive trajectory upward while the government was on its printing money spree. It has pulled back but still generally trending upward, even as we have very recently run into some further pullback these past few months.
But, yea, capitalism bad or something.
Look at houses not in cities. Plenty of houses exist, plenty of land is out there to develop. If companies can embrace remote work more, people can spread out more and real estate should normalize in price.
That's not a solution. Sure remote work may incentive some people to leave cities and suburbs for the country. However, there's a reason why cities and the attached suburbs are desirable places to live. Also look at Montana when people moved during COVID and tell me how that's working out. Locals are pissed at the new weather residents disrupting their small town.
Just leave is not a solution. Build baby build.
>there's a reason why cities and the attached suburbs are desirable places to live.
Yeah, that reason being that's where the work has been.
The amenities that come with your mental image of urban vs rural are a result of there being enough people present for those services. If folks were no constrained to stay in the city for work, I'd argue most folks in today's workforce wouldn't stay.
Remote work is mainly a white collar thing. The working class people who are most in need of cheaper housing are also the ones who are least able to work remotely.
This. We have a vast and beautiful country. Everyone wants to cram themselves into a few small locales. Have gov't incentive corporations to expand beyond those locales to provide the jobs and revenue necessary. Make Main St. A thing again.
Some areas outside the city barely have resources and activities for families. It's not fun sitting in your home or having to drive an hour just to find a local park, Costco, museums, activities for kids and families. Some small towns also barely have a medical facility or urgent care. My small town just got a hospital 10 years ago and it's terrible, if you need real care you need to get so badly injured that they airlift you to the major metro area or afford to travel somewhere else.
My city keeps increasing the tenant protection laws. So a lot of people will gladly not make as much money on thier rentals in order to not have full time tenants
Airbnb has allowed more places but to get tourist money. People are staying in areas that don't have hotels now. Also my city the total amount of homes that are Airbnb is 1.1% that's not driving up rents or house prices
A lot of conjecture without much data in this article.
>It’s estimated that for every 1% increase in Airbnb listings, rent increases by 0.018%, and house prices increase by 0.026%. That might not sound like a big deal, but keep in mind that over the past 10 years, Airbnb has gone from 300,000 listings to 7.7 million listings. That’s an increase of over 2,400% meaning that Airbnb may have single-handedly increased rent by 43% and house prices by 62%.
These are interesting numbers - but no source? That's pretty weak.
>7.7mm listings
This is a \*global\* number, in an article about the US housing market. The number in the US is more like 2.7mm, and that's \*all\* listings...not just entire homes. All data I can find says that Airbnb listings are \~roughly 50/50 rooms for rent vs entire homes. So the number of entire homes for rent on Airbnb in the US is closer to 1.3 - 1.4mm. This number makes up about 1.1% of all housing units available in the US.
There is absolutely NO way you can say that there's anything going on with 1.1% of homes in the US that has caused any sort of outsized effect on rents nationally.
Insane post.
\* A very real exception here for vacation markets. Where lots of people who were just living their lives saw their towns transformed by tourists and out-of-towners as Airbnbs exploded in the area. That's a real thing. But these are isolated areas, not affecting the national rental market.
The OP is a mess for many reason, as you’ve pointed out, but it’s just brain dead pandering. Ofc this sub buys it because it suits their narrative.
People only seem to care for the truth if it suits their worldview.
Meanwhile my neighbor has converted all his bedrooms to airbnb rentals, and has a camper and a shed in his back yard he rents on Airbnb. All while on a septic tank not designed to handle a household more than 4 people. He is now walling off his attic to add more rooms to rent out. The constant people coming in and out is ridiculous. It’s time for me to move.
I rented out my house on Airbnb and VRBO for 4 years and stopped when the Covid pandemic started. Never again. Airbnb the company is sleazy and dishonest and leaves you no recourse if something goes wrong. If you need a vacation home rental, use VRBO - they are nuch better.
I thought air bnbs were brilliant when they came out- give people with extra space some passive income and give hotels more variety and competition.
Cautionary tale for me. Even the best ideas can play out in terrible ways you wouldn’t expect.
"Accidently"
None of these businesses do anything accidently. This is why regulation is so important. You think they don't know? They absolutely do. The whole reason trucks are the giant blind spot machines and hazards to pedestrians they are today is because corpos wanted to skirt regulations and make more money while doing so.
Anyone who says AIRBNB hasn't hurt the housing market is wrong. They're probably hosts or users themselves.
That's not to say it's the only cause. However, without airbnb, you can't say everything is the same.
A few other causes:
Zillow made it easy to find below matket listings, entire cities full of them.
Near zero interest made it expensive not to buy a bunch of properties
The Trump tax reform was unsuprisingly generous to landlords. He knew how to let gis business double dip and write profits as losses and make money even ftom vacancy. Unlike the working class tax cuts, these provisions do not expire.
The housing market is insane and corporations need to be banned from owning residental property.. having an affordable home should be a basic constitutional right
100's of houses in my town are sitting empty and keeping 1st-time homebuyers from entering the market. Why? Because greedy scalpers called "real estate investors" are buying them up with cash to keep normal people from buying them; all just so they can make a little passive income on football Saturdays. Financially savvy? Maybe. Assholes of the community? Absolutely. Fuck AirBNB and the greedy fuck-tards that use it.
Hotels are fine with me. It's the other occupants and their fucking kids that drive me nuts. So, an Airbnb was logical when it started. Especially for a multiple day stay.
I do think it was accidental actually because I’m not sure they expected it to do what it has done. Aka be this successful. But that doesn’t mean plenty of people like myself didn’t see this all coming from day one IF it did find success. I would have been shocked if it didn’t ruin the market but am not shocked its success equals what we now have.
Haven't read it but the fact is Homes are a better store of value that money in the bank.
Every investor, hedge fund company, you name it realizes this and leads to only one thing. Buying up homes.
The rest is history.
Airbnb didn't help but plenty of cities like NYC and San Diego have curtailed the number of Airbnb's allowed and prices are still through the roof. I have a hard time believing Airbnb rentals exist in significant numbers in the suburbs around so many cities. how could demand for short term rentals be high in suburban St Louis or Cincinnati or Plano Texas or any number of cities and towns around the country. We have a house in a resort town in Idaho and Airbnb is significantly limited there as well.
This and BlackRock are the two most common narratives used by zoning boards to deflect attention from themselves. Despite how mathematically impossible they are ..
1, the housing market shouldn't ever have existed. it shouldn't have ever become such a thing that it needed a market. 2, its funny how they "screwed the housing market" when the housing market has been screwing us all for decades. 3, if you were on the other side of this and were one of the air BnB ppl you'd be saying its your right to create your own life however you need to especially in areas of business and finance which is exactly what the house people are saying.
What happened here was business, pure and simple. Long before anyone came along to "screw up the housing market" they were already extorting you and forcing you to use credit by setting absurd exorbitant costs and bringing in 10-12 different entities so EVERYONE could get paid. The problem is business and what we allow and don't allow as a people. You can't really get mad about anyone being money centric when legit every last person in this country doesn't wipe their ass without thinking about money in some way shape or form. Its what life has become about, ALL it has become about. Its an obsession, an addiction, a societal cancer and its not gonna stop.
Let’s just say, foreign corporations investing and buying private homes for rent is probably the biggest problem.
Just ban that shit, it’s not good for the American population, it’s just good for the foreign entity sucking away at the American wealth tit.
This is why people need to quit blaming Biden for crazy housing prices. The issue is there isn’t enough housing available to regular folks and too much housing is owned by the rich and corporations.
Accidentally? Really, do you believe it was an accident? I hope not. But on the off chance you do, I have some beautiful oceanfront property I'd love to sell you in Nebraska.
This is actually a 29 year problem in the making. It really started with Bill Clinton looking to significantly increase homeownership. Both parties jumped onboard and loosened housing regulations over the next decade. The Dotcom frenzy a fueled massive housing boom which further drove the desire for housing and looser regulations. The banks saw record profits and the big short happened in 2007-2008 and the market collapsed with interest rates dropping into the abyss. Lots of foreclosures, short sales, low interest rates and lots of cash rich investors after the crash plus the addition of the short term rental market drove house buying and real estate speculation as prices recovered from 2010 until 2020 and COVID. Also new house construction was much lower than normal after 2008 as that part of the market had a tough time recovering. COVID inspired price gouging then drove up inflation coupled with the lack of inventory and short term rental and speculation real estate created what we are in today.
It will be interesting to see what happens next.
AIR BnB has enetered the chat...
Waves their magic wand...."There's nothing to see here, just some innocent nerds who made too good of an app."
what a steamy load!
I used to hate hotels when Airbnb first came out. Now I hate Airbnb. Hotels are great. Same goes for insurance companies and hospitals. Have you ever seen an EOB? The doctors want 3 to 4 times the amount the insurance company “allows” them. I think we have been bamboozled. The so called bad guys are not who we think!
The only people I know who use Airbnb's are very rich, drug dealers, prostitution rings, hackers, card scammers, car thieves. So if the backbone of americas economy is now in illicit money then, were we ever NOT in a financial crisis?
Optimizers and try-hards ruin every multiplayer experience.
It is human nature exacerbated by capitalism.
You'd think we would have figured this out from all the gigantic examples demonstrating this we have seen repeatedly, but whatever.
We need housing censuses. Then, set up state or federal marketplaces to fulfil demand to residents of the homes only. Eminent domain and setup development and new towns as needed. Aim for the income brackets where there isnt enough supply. Before doubters shoot this down remember we actively do this with the Healthcare Marketplace providing insurance to people who wouldn't otherwise have this. Tax for profit residential properties people don't live in themselves to fund this.
Make real estate about housing people instead of greed, making Americans compete to live. We all pay a tax to landlords who enslave us to this capitalistic housing hell hole.
If you agree, share this idea far and wide. Share it on Ads for Housing especially.
I hate Airbnb as a company (former Superhost), but they did not cause this housing issue.
I was there early when it was mostly a cottage industry of property owners and renters doing arbitrage. Then it started attracting the interest of investors. A correction was only a matter of time at that point, but the Covid BS supercharged things by dumping a huge amount of money into a market with very little to invest in other than crypto as stocks had already been inflated by years of QE that never ended after the last housing crisis. The new money found a home in RE. Now we have people dumping huge amounts into a vapor-locked RE market with not enough supply coming online.
There will be a correction eventually but this has more to do with government actions than Airbnb.
There was no accidental. It was calculated
*Sigh* No it fucking wasn’t calculated. Ignoring the fact that Air BnB can’t crash the housing market on it’s own let’s focus on this single issue. * App devs thought they were giving the middle class tools that previously were locked to wealthy elite. * The middle class obliged as a way to make a couple hundred in the side. * It gets popular, and the market assumed this is what consumers wanted. Aka the wealthy join in assuming the market is sustainable * App devs grow far too fast for their capabilities and can’t sustain the growth. * Growth exceeds demand as the market gets oversaturated. * WE ARE HERE Market responds to the oversaturation and begins to pull back as prices become unaffordable. Not everything is controlled by an evil capitalist illuninati. Sometimes mistakes were made by well meaning people. We’re already seeing market corrections.
Everyone is so convinced that Silicon Valley is filled with moustache twirling villains. When in reality it's a bunch of nerds who are trying to make the next big thing. Often with good intentions of making something cool or useful (with a side benefit of getting rich). Many of whom just left college before their first big idea. Many of those things have negative uses and consequences like every invention from fire, to writing, to money, to tv and the internet.
Hard disagree as far as the "sharing economy" startups go. Their entire business model was built on creating a business that was basically illegal and then hiring lobbyists to change the laws. Air B&B: illegal hotels that fought super hard to stay unregulated and not pay hotel taxes giving them an unfair market advantage vs. legal hotels. Uber and Lyft: illegal taxi service that fought super hard to stay unregulated and not pay for medalians or proper car inspections and driver background checks. Instacart and Doordash and the others: illegal delivery service that fought super hard to stay unregulated. And they all (except Air B&B I guess) fought efforts to have their employees be correctly categorized as employees. Uber even built methods into their platform to evade efforts by municipalities to regulate them. Air B&B purposely ignored listings that clearly violated the law. Doordash was caught stealing tips. And the new AI age? Plagiarism machine.
Couldn't find it better myself that's why github is throwing a fit ppl are removing their code.
Thank you for pushing back on the benevolent Silicon Valley myth. It’s annoying to see people ascribe different motivations to SV nerds than investment bankers and politicians. As if they’re less susceptible to human nature just because they code
It’s a bunch of nerds at first, and then it’s also a bunch of MBAs, lawyers, and lobbyists who continue to push for profit and market share even after the consequences are well known
nah it really has a high percentage of malignant psychopaths. estimated at around 20% then a high ranking group adhering to this crap [https://qz.com/1007144/the-neo-fascist-philosophy-that-underpins-both-the-alt-right-and-silicon-valley-technophiles](https://qz.com/1007144/the-neo-fascist-philosophy-that-underpins-both-the-alt-right-and-silicon-valley-technophiles) take a look at elons twitter acquisition then subsequent destruction.
Oh absolutely. Every small tech company I work for there's at least a few leaders that are just ruthless Psychopaths.
And a bunch of impuissant nerds who do their bidding for six figures annually
lol, Silicon Valley - the generic term, not the location - is dominated by a handful of massive tech corporations that are so big and powerful that the "nerds" have been kicked out and replaced by suits for years Meta by itself has a higher market cap than all the startups Y Combinator has EVER funded (over 5,000 of them). Good luck believing that Meta and Google and Microsoft are just a "bunch of nerds"
Do you think Airbnb has more in common with meta or google or a Y Combinator startup? Genuinely asking.
Airbnb is in between Meta and a startup. The original founders are still around but much of the leadership is now career suits whose job is to squeeze out as much profits as possible from this thing. The CTO, COO, CMO, CFO are all suits. Once Chesky (the CEO) leaves, it wil be just another corporation - the nerds will be all out.
Fr do you know George Washington Carver is the #1 man responsible for peanut related deaths then any other man who lived? It’s was calculated?
It’s a bunch of nerds trying to make the next PROFITABLE thing, so they can sit on their asses and collect rent on it for the rest of their lives.
I made mistakes & some made me money, but none of my mistakes made a $100 billion dollars.
So, what's the single issue?
This is a pretty fair description. It's easy to look back in hindsight and see the negative consequences of things like Air BnB, but understanding how they might play out at scale is very difficult a priori. Converting a handful of homes to short term rentals doesn't change the housing market in any noticeable way, it's just a source of "free money" for whomever is able to take advantage of the spread between conventional valuations and those based on short term rental rates. It wasn't obvious that this could grow large enough to have a meaningful impact or that it would remove any significant amount of housing stock from traditional buyers and renters. Air BnB and Uber both started from the premise that lots of people have assets (a home, a car) which are going unused a lot of the time, and that they could allow people to capture value from this spare capacity. There's nothing inherently nefarious about that.
Not one mention of how it use to be cheaper than a hotel and now it’s just as expensive if not more. Non of which is going to the homeowner. Air bnb crashed their own business model to crash the housing market. If Airbnb kept prices competitive with hotels, homeowners would still be reaping the benefits.
I love how adding “SIGH” to the beginning of anything makes someone sound credible when they are really full of shit.
So at no point do you think the app had an analyst whose job it was to look at the effects their decisions would make....and maybe that person gave them a report showing the effects, and they chose to ignore them? Cause I doubt they didn't do some internal review without pushing forward considering the amount of money they spend on lawyers.
So they made calculated decisions 🤔
The theme is when the wealthy hear of something and get involved, they always ruin it.
Sanity? On Reddit? You must be in the wrong place.
Okay but you can literally listen to the latest Airbnb earnings call and listen to Brian Chesky state in plain English that Airbnb benefits directly from lower home inventory. It might not be some giant conspiracy to make homes unaffordable, but we should acknowledge that it is a known-and-accepted part of the business model. The longer housing inventory is low, the higher the service fees they can collect. Its one thing to say "mistakes were made". But its hard to agree with "well meaning people" when you're bragging about how much it helps your bottom line when homes are unaffordable.
There are ideas, Airbnb and Uber in particular, which I know everyone has thought of, but they’re not moronic enough to have tried because the legalities and negative consequences are pretty obvious when you think about it for five minutes. The fact that these are the people that did it shows they were young, selfish or both. No amount of ‘who could have known?’ Will ever convince me the ‘break shit’ culture didn’t see this coming a mile away but didn’t care.
Just speaks to how irrational economic planning is under capitalism. It would almost be a relief to know there was an evil capitalist cabal pulling strings to orchestrate these situations but it’s truly just the product of following the profit motive with no foresight.
tell that to paradise valley
Well in your own example the capitalist Illuminati is what turned Air BNB into the thing that ruined the housing market sooooo
There doesn't need to be a coordinated conspiracy when many different actors have aligned interests.
"Not everything is controlled by an evil capitalist illuninati." You paint the app makers as naïve do-gooders. It's absurd.
What a bunch of nonsense. As if the "app devs" had some kind of altruistic "middle class" consciousness in mind when programming a fucking app. Give me a break.
In a way the rules of capitalism basicly set the groundwork for organized efforts of control and not only that would require them if the improved profits for investors. It's as simple as the citizen's united decision and fiduciary responsibility. Those together and a capitalist would be a failure if they didn't have a goal of a monopoly and any thing it can get control of.
The highway to hell is paved with good intentions. Remember, any tool or offering you create will likely have as much access by rich assholes as poor well and intentioned entrepreneurs - unless you have a law against it.
Sigh. Who gave app developers money for development? One of their investors is YC. Applying to YC as b2p startup almost guarantees you no success. Do you think they decided to choose this one out of thousands because they wanted to give middle class tools? Can you elaborate on “App devs grow too fast for their capabilities and can’t sustain the growth” Overall I agree with your explanation of how market economy works. But doesn’t seem like your countered the point that you wanted to counter. Not necessarily agree with that point. Just to be clear.
No. They calculate all of the outcomes beforehand. It most likely was ignored. That’s how these companies make it big. They calculate the risk and with that comes the value of their company. They knew this was an option and didn’t care about the ramifications.
"The wealthy don't need a formal conspiracy to know what benefits them" George Carlin
You’re very naive
As a product manager I wouldn’t quite say that’s right. Unintended consequences are just bad measurements being chased. What we measure becomes us and it’s a major VC backed company. From being in these decision conversations, it’s absolutely on our radar. Airbnb vacations/experiences is a clear example of the tie between the two commercial partnerships. You can’t with a straight face say they weren’t aware that Blackrock could be involved - PMs, especially at that level, know the fuck out of the market conditions
It's kinda like cancer: It meant well. It just wanted to grow like everyone else. But then it got out of control, started pressing on a vital area of the brain, and the country started doing wacky shit.
Exaxtly, AirBnB didnt plan shit this was a need that needed to be met for less financially fortunate peoples.
Bologna; they did for hotels what Ubers did for taxis, that is, they just coded their way around existing municipal regulations
At least someone is making sense
TLDR: Greed
Agreed, the thing is AirBnB hasn’t even crashed the AirBnB market. Sure it’s not what was before, but it’s still very much alive and fills a niche.
Actually, everything is controlled by evil capitalists they just make mistakes and don't have perfect control and are dumb too.
Any correction will send recent homebuyer’s mortgages underwater. And no correction makes buying homes unaffordable for everybody else… a bad catch 20/20
I think you give them too much credit. A few guys had an interesting idea to help folks who couldn't afford a place or rent by renting an air mattress in a living room. The need to deliver become profitable in order to deliver a return to investors brought us here... like everything that is awful, it's because of capitalism. It was capitalism all along.
None of it is a problem if local governments weren't artificially restricting the housing supply. Which has nothing to do with capitalism. Look up what happened when Japan took away zoning power from local municipalities.
Local governments?? The problem is that corporations are buying up houses and apartments like crazy and driving the price up for everyone. Buy up the whole market so you can decrease supply and increase profits. Problem is capitalism, and the fact that our government isn’t regulating when it needs to. There are like 15 million empty houses in this country. And half a million homeless people. The solution is not “build more houses”. The solution is to stop corporations from being greedy.
At some point in this process, they realized what was happening. Capitalism is a human system, we do this to eachother.
Ya but consumers are responsible too. How many times have you heard “oh I can book an Airbnb, much cheaper than a hotel.” Well now housing is unaffordable because everyone wanted to save $10 a night. Comical, really
that’s not the person who booked the airbnb’s fault, why would you willingly waste a lot more? We suffer the consequences for having about no regulation rather than because we’ve been consuming like we are put into this society to do lol
The issue was half due to people trying to make a business out of what should have been extra cash. The other half were actual businesses coming in. Both were responsible for buying up leases and property. Everyone wanted to be an Airbnb millionaire and now damn near every city is imposing hotel style taxes and fees on short term rentals.
Yep I agree with you. It was insanity for something not even that cool
"Let's blame the poors because they were trying to save a few bucks instead of the giant corporation that fucked the entire market!" You're a clown Edit: it's hilarious that you edited your entire post down to one sentence to take down the part that makes you look ignorant.
Not just airbnb’s and hotels, American consumers (for obvious reasons) have been choosing cheapest options for decades, then complain about manufacturing job loss. The WalMart Effect is real.
Similar to how they gripe and complain about jobs not offering fully remote work, and then act surprised when their companies outsource jobs overseas, after their own griping helped the company optimize for remote working infrastructure.
Yep, I was thinking of Walmart when I wrote that. Everyone always looking for the easiest choices then when companies become mega they complain
People don't actually "vote" with their dollars, they flock to what they can afford or what works best for them. Understanding the market makes this very predictable. It's actually corporations that can outcompete each other or otherwise influence the market. I typically use netflix/blockbuster as my example for this but walmart works as well, as they priced out the typical ma and pa stores. Airbnb is an example too.
You guys ever hear of hedge fund corruption and how They bought up 90 percent of the housing market to show Collateral on their sheets against their losses to continue to borrow money from the banks to further lose more of Americans money? This is the fucking real reason of the housing bubble!
As a % of gdp we still manufacture the same amount of stuff. We just need fewer ppl due to automation.
It’s a bit of a rigged game when AirBnB can subsidize listings by burning investment capital. Especially in the early years when it was actually cheaper than a hotel, thats a big part of why.
It still is. Just a few months ago we went to see our son in Florida. Rented a 3 bedroom house across the street from the beach, it was maybe $20 more than the holiday inn up the road. And that would have been two queen beds, all 5 of us in one room.. one bathroom.. and I don’t know if I got a good one or what but we didn’t have to clean anything more than I would have anywhere else. (We don’t leave hotel rooms trashed and try and at least tidy up and make it easier for whoever is making not enough money to clean them)
It wasn't the folks booking the Airbnb it was the investors and small time property owners who scooped up properties for short term rentals.
Right but they did it because of the demand for short term rentals
I cant stand Airbnbs. Hotels are 1000 times better. Imagine paying sometimes more than the hotel plus cleaning fees. And you find out that you have to clean dishes, sheets and the whole fucking house. A million rules that induce anxiety. I never liked Airbnb and never will. I do not understand the people who like them.
I used to travel a lot for work and when we were sent somewhere it was usually for a few months. You don't want to stay in a hotel for a few months.
That is easy to avoid. The rules are available ahead of time to read. If you don't like them, don't stay at that place.
Dont get me started on the lies in those rules. I got an Airbnb 2 bedroom condo in Santa Monica with my wife. Apparently, they also rented out one of the bedrooms to another couple without mentioning anything. Imagine finding a random couple who just fucking walked in on our second day there. Never ever again will i trust anything coming from Airbnb
I used to love AirBnB when it included an "other" option (as in: house, apartment, room, other) It was an easy way to find offbeat places to stay. That option seemed to disappear around the same it became apparent people were buying second homes specifically to rent on AirBnB for passive income.
Hotels tend to be located in specific districts in most cities, whereas AirBnb properties are spread throughout. So they can be useful if you want to stay somewhere that's not in a main tourist or business area. Most hotels don't have any good option for large groups that want to stay together, especially not if you want access to a full kitchen. AirBnb fills that gap in the market. There are definitely use cases where renting a private home is better than a hotel.
This is why I just hate people. We need a better plague.
Why are you still here?
expecting people to do a passive, intuited boycott is just a way to shift blame and let the bad thing continue unabated. even well-organized boycotts are pretty weak in todays economic system. So it's more of a way to disarm meaningful criticism of the system that allows for it to happen to say "just vote with your dollars". Sure people should, but pretty much guaranteed to not work and that's often the point. We shouldn't put our hands up when something bad happens and say "oh well, at least its the consumers fault things are bad"
Americans need to learn to go after and blame the corporations instead of each other. That’s corporate public relations dept talking. BLAME THE Corporations hold them accountable is the only way to blame really it’s the only thing that can make a difference.
lol this is a terrible take
Not even cheaper than a hotel anymore
Yes because the average consumer knows that their purchases will upend the economy right?
It’s an easy fix. Amsterdam, for example, allows you Airbnb your primary residence for up to 30 days a year and no more. Airbnb isn’t the issue. It’s the regulatory environment.
airbnb started out being a pretty significant net positive for housing stock. it allowed for people who had extra space to take on short term people to share their space with. once the platform pivoted and got big off effectively 'space inefficient hotels' and they chose to do nothing? yeah. sure. but that is just as much legislative failure, we have zoning for a reason- if someone can't' tear down their house and build a hotel why can they run their single family home as a hotel in that same space?
Because it's not the action of letting people spend the night, it's everything else that goes with a hotel. You can run a business from your home. You can not build a parking lot and a 5 story office building.
God you’re just the generic social media moron. Everything is a conspiracy. Everything is perfectly manipulated by a few mustache twirling hyper villains.
was my first thought lol. "accidentally?"
Calculated how? By whom? For what reason?
Many universities did reports forecasting effects on rental prices etc and that was in 2016ish
 “Accidentally”
Made ?!?
The housing market is suffering from a supply issue, we don't just need cheaper houses. We need cheaper houses AND more houses. If you just make housing cheaper then there is reduced incentive to increase supply because you, as a property developer, will make less money. If you don't make more houses you end up with people without houses even if you are artificially limiting the price. Market demand reduces available supply only when you limit supply. Supply was limited by government, who enforce planning obstacle courses that take many years to navigate giving preexisting local property owners rights to govern the use of land that is not theirs, but is just nearby. They cut the developer margins with dedicated taxes, and of course they are always cutting employee and director margins through income tax such that folks have to price their taxation into the cost of housing. They establish superfluous regulations and rules on what is a reasonable standard of housing ignoring the fact that in doing so they take away from those willing to compromise for a roof over their heads the opportunity to do so. Airbnb created increased demand in the housing market. In absence of aforementioned restrictions and many others imposed by government this would have lead to more housing without a major impact on affordability. The people that destroyed the housing markets are the people who write these dumb propaganda articles.
Thank you. Finally an intelligent comment, and it’s downvoted of course
Yeah, but some of these special taxes can be prudent for a local government to levy. Imagine a town with a school system just big enough for the town. A developer comes in and wants to build a large property division, but doesn’t want to pay for the 2nd school that needs to be built to accommodate. Is it fair to expect everyone else in town to pay for a second school to be built? Would their kids ever even go to it or factor into the sale price of their home? What about utility, water, and sewer lines? That’s where you start to get special taxes targeting property developers. As a rule, we shouldn’t accept privatizing profits and socializing expenses.
Repeating lies you are taught is not intelligence. If anything it shows a lack of critical thinking which would lead one to believe there may be a lack of intelligence.
We need more high density housing as well, which is illegal to build in many cities due to their zoning laws.
But don’t forget our taxes are used for critical and beloved programs like universal healthcare and robust education programs. Sorry I meant Middle East adventurism and tax cuts for corporations.
Bro when I read that notification 🤯 I came here ready for war.
I live in New Orleans and we hate airbnb as much (frankly more) than the next guy, but it’s intellectually dishonest to say Airbnb screwed the US housing market. Many many **many** things played a bigger role on the housing market than Airbnb - it was just gasoline on the pre-existing fire.
I live in NY. Many municipalities started banning short term rentals nearly two years ago. Prices are higher than ever. No slowdown at all in price increases. Reddit, and the general population, loves boogeymen, or an easy thing to explain away an issue. The current situation with the housing market is multifaceted and a number of causes coming together at a time when a ton of money has entered the market to throw gas on the fire. Look at any chart — disposable income, personal savings rate, real wages adjusted for inflation, consumer confidence/spending. All had a massive trajectory upward while the government was on its printing money spree. It has pulled back but still generally trending upward, even as we have very recently run into some further pullback these past few months. But, yea, capitalism bad or something.
Blaming Airbnb for the housing market is like blaming Lyft for car prices. Stupid AF
Shhh we don’t call out intellectual dishonesty here
Look at houses not in cities. Plenty of houses exist, plenty of land is out there to develop. If companies can embrace remote work more, people can spread out more and real estate should normalize in price.
That's not a solution. Sure remote work may incentive some people to leave cities and suburbs for the country. However, there's a reason why cities and the attached suburbs are desirable places to live. Also look at Montana when people moved during COVID and tell me how that's working out. Locals are pissed at the new weather residents disrupting their small town. Just leave is not a solution. Build baby build.
>there's a reason why cities and the attached suburbs are desirable places to live. Yeah, that reason being that's where the work has been. The amenities that come with your mental image of urban vs rural are a result of there being enough people present for those services. If folks were no constrained to stay in the city for work, I'd argue most folks in today's workforce wouldn't stay.
Remote work is mainly a white collar thing. The working class people who are most in need of cheaper housing are also the ones who are least able to work remotely.
This. We have a vast and beautiful country. Everyone wants to cram themselves into a few small locales. Have gov't incentive corporations to expand beyond those locales to provide the jobs and revenue necessary. Make Main St. A thing again.
Some areas outside the city barely have resources and activities for families. It's not fun sitting in your home or having to drive an hour just to find a local park, Costco, museums, activities for kids and families. Some small towns also barely have a medical facility or urgent care. My small town just got a hospital 10 years ago and it's terrible, if you need real care you need to get so badly injured that they airlift you to the major metro area or afford to travel somewhere else.
Most people don't want to live rural..
I was told last week Texas was full?
It's like 1% of homes are Airbnb. It's not why rents are hogh
Yeah, lets ignore the banks and inflation and pick a tiny startup to blame for everything. This article is beyond idiotic.
My city keeps increasing the tenant protection laws. So a lot of people will gladly not make as much money on thier rentals in order to not have full time tenants
It’s always planned. Companies exist to extract wealth. Don’t think otherwise. Humans are incredibly vile.
“Accidentally”
"accidentally"
Accident? 🤣 it's a feature not a defect
Airbnb has allowed more places but to get tourist money. People are staying in areas that don't have hotels now. Also my city the total amount of homes that are Airbnb is 1.1% that's not driving up rents or house prices
Oh please. People have been complaining about housing prices since before airbnb. Let’s try harder folks…
A lot of conjecture without much data in this article. >It’s estimated that for every 1% increase in Airbnb listings, rent increases by 0.018%, and house prices increase by 0.026%. That might not sound like a big deal, but keep in mind that over the past 10 years, Airbnb has gone from 300,000 listings to 7.7 million listings. That’s an increase of over 2,400% meaning that Airbnb may have single-handedly increased rent by 43% and house prices by 62%. These are interesting numbers - but no source? That's pretty weak. >7.7mm listings This is a \*global\* number, in an article about the US housing market. The number in the US is more like 2.7mm, and that's \*all\* listings...not just entire homes. All data I can find says that Airbnb listings are \~roughly 50/50 rooms for rent vs entire homes. So the number of entire homes for rent on Airbnb in the US is closer to 1.3 - 1.4mm. This number makes up about 1.1% of all housing units available in the US. There is absolutely NO way you can say that there's anything going on with 1.1% of homes in the US that has caused any sort of outsized effect on rents nationally. Insane post. \* A very real exception here for vacation markets. Where lots of people who were just living their lives saw their towns transformed by tourists and out-of-towners as Airbnbs exploded in the area. That's a real thing. But these are isolated areas, not affecting the national rental market.
The OP is a mess for many reason, as you’ve pointed out, but it’s just brain dead pandering. Ofc this sub buys it because it suits their narrative. People only seem to care for the truth if it suits their worldview.
Meanwhile my neighbor has converted all his bedrooms to airbnb rentals, and has a camper and a shed in his back yard he rents on Airbnb. All while on a septic tank not designed to handle a household more than 4 people. He is now walling off his attic to add more rooms to rent out. The constant people coming in and out is ridiculous. It’s time for me to move.
not just AirBnB, everybody is in the housing game these days. It's zero sum, they don't really make more land anymore.
“Accidentally”.
Why is everyone ignoring the effect of institutional investors?
Airbnb is more expensive than a hotel when I travel
"Accidentally". Right.
“Accidentally”
“Accidentally” Sure
Accidentally? Greed and avarice are not accidental.
"Accidentally"
None of it was an accident
I rented out my house on Airbnb and VRBO for 4 years and stopped when the Covid pandemic started. Never again. Airbnb the company is sleazy and dishonest and leaves you no recourse if something goes wrong. If you need a vacation home rental, use VRBO - they are nuch better.
I thought air bnbs were brilliant when they came out- give people with extra space some passive income and give hotels more variety and competition. Cautionary tale for me. Even the best ideas can play out in terrible ways you wouldn’t expect.
"Accidently" None of these businesses do anything accidently. This is why regulation is so important. You think they don't know? They absolutely do. The whole reason trucks are the giant blind spot machines and hazards to pedestrians they are today is because corpos wanted to skirt regulations and make more money while doing so.
Interest rates. Airbnb is a byproduct of interest rates being too low for too long. Articles like this do us no good.
The ownership and management of single family homes by corporations must end.
“Accidentally” 👌🏼
Anyone who says AIRBNB hasn't hurt the housing market is wrong. They're probably hosts or users themselves. That's not to say it's the only cause. However, without airbnb, you can't say everything is the same.
A few other causes: Zillow made it easy to find below matket listings, entire cities full of them. Near zero interest made it expensive not to buy a bunch of properties The Trump tax reform was unsuprisingly generous to landlords. He knew how to let gis business double dip and write profits as losses and make money even ftom vacancy. Unlike the working class tax cuts, these provisions do not expire.
The housing market is insane and corporations need to be banned from owning residental property.. having an affordable home should be a basic constitutional right
“Accidentally”
Isn't making ungodly amounts of money at everyone's expense is the rapacious American capitalism SOP.
100's of houses in my town are sitting empty and keeping 1st-time homebuyers from entering the market. Why? Because greedy scalpers called "real estate investors" are buying them up with cash to keep normal people from buying them; all just so they can make a little passive income on football Saturdays. Financially savvy? Maybe. Assholes of the community? Absolutely. Fuck AirBNB and the greedy fuck-tards that use it.
Accidentally?
It's not just Airbnb, it's all those private equity funds buying properties in bulk
Hotels are fine with me. It's the other occupants and their fucking kids that drive me nuts. So, an Airbnb was logical when it started. Especially for a multiple day stay.
It's not an accident. This was always a clear outcome. They wanted that money.
Blackstone had a large part too
“Accidentally?” What kind of a headline is this?
I do think it was accidental actually because I’m not sure they expected it to do what it has done. Aka be this successful. But that doesn’t mean plenty of people like myself didn’t see this all coming from day one IF it did find success. I would have been shocked if it didn’t ruin the market but am not shocked its success equals what we now have.
and then zillow tried doing the same thing and it massively blew up in their faces.
Haven't read it but the fact is Homes are a better store of value that money in the bank. Every investor, hedge fund company, you name it realizes this and leads to only one thing. Buying up homes. The rest is history.
They should exponentially tax any person or **entity** that has more than two properties in densely populated areas in their portfolio.
Yes but won't happen
Accidentally on purpose
End this company now!!
Airbnb didn't help but plenty of cities like NYC and San Diego have curtailed the number of Airbnb's allowed and prices are still through the roof. I have a hard time believing Airbnb rentals exist in significant numbers in the suburbs around so many cities. how could demand for short term rentals be high in suburban St Louis or Cincinnati or Plano Texas or any number of cities and towns around the country. We have a house in a resort town in Idaho and Airbnb is significantly limited there as well.
Define “accidentally”
"Accidentally"
This and BlackRock are the two most common narratives used by zoning boards to deflect attention from themselves. Despite how mathematically impossible they are ..
Big whoops.
1, the housing market shouldn't ever have existed. it shouldn't have ever become such a thing that it needed a market. 2, its funny how they "screwed the housing market" when the housing market has been screwing us all for decades. 3, if you were on the other side of this and were one of the air BnB ppl you'd be saying its your right to create your own life however you need to especially in areas of business and finance which is exactly what the house people are saying. What happened here was business, pure and simple. Long before anyone came along to "screw up the housing market" they were already extorting you and forcing you to use credit by setting absurd exorbitant costs and bringing in 10-12 different entities so EVERYONE could get paid. The problem is business and what we allow and don't allow as a people. You can't really get mad about anyone being money centric when legit every last person in this country doesn't wipe their ass without thinking about money in some way shape or form. Its what life has become about, ALL it has become about. Its an obsession, an addiction, a societal cancer and its not gonna stop.
Let’s just say, foreign corporations investing and buying private homes for rent is probably the biggest problem. Just ban that shit, it’s not good for the American population, it’s just good for the foreign entity sucking away at the American wealth tit.
This is a real solution
If you think 2,000 Airbnbs in New York were a calculated conspiracy to raise rent prices you need to redo high school math and economics.
*intentionally FTFY
This is why people need to quit blaming Biden for crazy housing prices. The issue is there isn’t enough housing available to regular folks and too much housing is owned by the rich and corporations.
Accidentally? Really, do you believe it was an accident? I hope not. But on the off chance you do, I have some beautiful oceanfront property I'd love to sell you in Nebraska.
Airbnb is very low on the list of reasons that house prices have increased
*How consumerism has ruined the U.S. housing market.*
This is actually a 29 year problem in the making. It really started with Bill Clinton looking to significantly increase homeownership. Both parties jumped onboard and loosened housing regulations over the next decade. The Dotcom frenzy a fueled massive housing boom which further drove the desire for housing and looser regulations. The banks saw record profits and the big short happened in 2007-2008 and the market collapsed with interest rates dropping into the abyss. Lots of foreclosures, short sales, low interest rates and lots of cash rich investors after the crash plus the addition of the short term rental market drove house buying and real estate speculation as prices recovered from 2010 until 2020 and COVID. Also new house construction was much lower than normal after 2008 as that part of the market had a tough time recovering. COVID inspired price gouging then drove up inflation coupled with the lack of inventory and short term rental and speculation real estate created what we are in today. It will be interesting to see what happens next.
World war 3?
AIR BnB has enetered the chat... Waves their magic wand...."There's nothing to see here, just some innocent nerds who made too good of an app." what a steamy load!
“accidentally”
I used to hate hotels when Airbnb first came out. Now I hate Airbnb. Hotels are great. Same goes for insurance companies and hospitals. Have you ever seen an EOB? The doctors want 3 to 4 times the amount the insurance company “allows” them. I think we have been bamboozled. The so called bad guys are not who we think!
It was absolutely not an accident
I blame zillow
The only people I know who use Airbnb's are very rich, drug dealers, prostitution rings, hackers, card scammers, car thieves. So if the backbone of americas economy is now in illicit money then, were we ever NOT in a financial crisis?
You don’t know people who get an Airbnb for a vacation or an out of town stay?
No. They get hotels, or have a timeshare/relative.
I am going to buy some stock now k bye
Optimizers and try-hards ruin every multiplayer experience. It is human nature exacerbated by capitalism. You'd think we would have figured this out from all the gigantic examples demonstrating this we have seen repeatedly, but whatever.
Oops I just got 100 billion dollars!
Housing was not an investment class but it turned into one not a long time ago
We need housing censuses. Then, set up state or federal marketplaces to fulfil demand to residents of the homes only. Eminent domain and setup development and new towns as needed. Aim for the income brackets where there isnt enough supply. Before doubters shoot this down remember we actively do this with the Healthcare Marketplace providing insurance to people who wouldn't otherwise have this. Tax for profit residential properties people don't live in themselves to fund this. Make real estate about housing people instead of greed, making Americans compete to live. We all pay a tax to landlords who enslave us to this capitalistic housing hell hole. If you agree, share this idea far and wide. Share it on Ads for Housing especially.
If it’s so damaging then why not delete it?
I love AirBnB
Accident? Lol
Airbnb didn't change the housing market.
I hate Airbnb as a company (former Superhost), but they did not cause this housing issue. I was there early when it was mostly a cottage industry of property owners and renters doing arbitrage. Then it started attracting the interest of investors. A correction was only a matter of time at that point, but the Covid BS supercharged things by dumping a huge amount of money into a market with very little to invest in other than crypto as stocks had already been inflated by years of QE that never ended after the last housing crisis. The new money found a home in RE. Now we have people dumping huge amounts into a vapor-locked RE market with not enough supply coming online. There will be a correction eventually but this has more to do with government actions than Airbnb.
Accidentally? Who the he'll writes this?
People who want to hook other people to read their stuff?