The Fall of Airbnb and Short-Term Rentals WHAT DO THESE BANS MEAN FOR THE HOUSING MARKET?
AIRBNB REGULATIONS VARY. So, how are cities working toward preserving their communities? By
Almost everyone has stayed in an Airbnb or at least heard of the global short-term rental company. Since its inception in 2008, Airbnb has offered listings worldwide. The company has been providing budget options and, more recently, high-end lodging for every type of traveler. But the golden age of Airbnb may be over. U.S. cities have recently tightened restrictions on Airbnb hosts and anyone renting short-term accommodations. The reason is that Airbnb listings have caused local rent prices to skyrocket, especially in tourist destinations like New York City. According to Jorge González-Hermoso, a research associate at the Urban Institute, the Big Apple recently showed more Airbnb listings than actual apartments for rent. More tourists than established owners/renters were living in residential dwellings.
short-term rentals are banned from neighborhoods of single-family homes. Short-term rentals in communities with multifamily dwellings are still allowed but must pay the same taxes and fees as hotels. HOW WILL THE HOUSING MARKET BE AFFECTED? As the bans continue to roll out in cities worldwide, many hope this will bring more low-priced properties into the market. While plenty of talk about these changes may encourage real estate investors and homebuyers, the truth is that it might not make a difference. Experts say these short-term rental owners won’t simply start selling their property. Instead, they’ll work around the restrictions and likely transform listings into long-term rentals. Don’t get your hopes up!
implementing tighter restrictions that severely limit the types of short-term rentals allowed. New York City was one of the first to put what Airbnb called a “de facto ban” on these accommodations. In 2022, the city prohibited owners from renting out a unit for less than 30 days at a time without the host being present in the unit. Cities in California battling inaccessible housing have also released new regulations on Airbnb hosts. Even in San Francisco, where the company originated, hosts must be full-time residents and cannot rent out listings for more than 90 days a year.
Dallas has been the most recent to establish regulations, asserting that all
ARE YOU READY FOR AN INHERITANCE?
UNCERTAINTY AND THE IMPORTANCE OF PLANNING
The age at which people receive inheritances has shifted, with the new average age being 51. This is a critical period in many people’s lives, often coinciding with planning for retirement or helping children with college expenses. While the prospect of an inheritance can be comforting, it’s essential to approach it with a well-thought-out plan.
consider saving or investing it for the next generation. This can create a lasting legacy and give your children or grandchildren a financial cushion. Start teaching them now to live below their means so using their inheritance wisely can be a part of this legacy. TAX IMPLICATIONS Inheritances can come with tax implications that vary depending on the type of asset and your jurisdiction. Consult with a tax advisor to understand the tax obligations associated with your inheritance so you can effectively incorporate the inheritance into your financial plan. Receiving an inheritance can be a financial windfall that requires careful planning and consideration. Taking these steps ensures your inheritance is a financial boon rather than a burden.
Inheritances are often uncertain; you may not know when or how much you’ll receive. However, most people have a general idea that an estate is forthcoming, so discussing it with a financial planner in advance is crucial. Preparation can make the process less stressful when the time comes, allowing you to make informed decisions rather than emotional ones. Evidence suggests that failure to plan can result in your squandering the inheritance. Shockingly, 1 in 3 inherited estates are spent in just two years. To avoid this pitfall, create a financial plan that aligns with your long-term goals and values.
SAVE OR INVEST FOR THE NEXT GENERATION
If you don’t immediately need the inheritance for your financial goals,
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