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. AIRBNB REGULATIONS VARY. So, how are cities working toward preserving their communities? By 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 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! WHAT DO THESE BANS MEAN FOR THE HOUSING MARKET? The Fall of Airbnb and Short-Term Rentals
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