Published On: Fri, Dec 30th, 2016

Airbnb Promises to Ease Offerings in Cities With Housing Shortages

Airbnb announces new restrictions on listings on rentals in London and Amsterdam. The home-sharing platform is under pressure from local governments as real estate prices rise in many cities. Limits in London and Amsterdam require Airbnb to only allow owners to rent a property for 90 days a year in London and 60 days in Amsterdam.

Soaring rental prices in London led to a severe housing shortage. Owners of many apartments chose to rent their apartments to tourists on Airbnb instead of renting to locals.

photo Alina Ku-Ku via Shutterstock

Rental properties turn into “unofficial hotels” state critics of Airbnb in London. Lower supply of apartments and rentals further raise prices, limiting affordable housing. Berlin banned entire apartment rentals through Airbnb due to low availability and high costs.

Airbnb hosts in London rent their space for $4,400 a year on average over 50 nights. Amsterdam prices are even higher, with hosts earning $4,050 on average over a span of 28 days.

The company is back in the headlines just days after the Christmas holiday. Tenant lawyers were dispatched in San Francisco and other cities to monitor homes where tenants are evicted to offer properties on Airbnb and similar services.

Landlords in the city are under a close eye from private investigators that are looking for proof that landlords are violating city ordinances. San Francisco’s rental prices has caused a shortage of affordable housing. The city’s ordinances limit private homes offered as short-term rentals. Airbnb denies the allegations that their service is causing rental spikes.

Alternative investments are on the rise across the United States. Real estate, commercial and consumer loans and small business loans are being offered to investors. Crowdfunded offerings have also in a rise in alternative investments.

The Washington Post reports a rise in suburb home sales and higher mortgage rates in 2017. Midwestern cities are forecasted to be a key portion of new home sales among millennials. Price appreciation is expected to rise at a 3.9% annually in 2017.

Faster moving homes and a shortage of real estate is expected.

Inventory is down 11% in the top metro markets. A decline in inventory is forecasted for 2017. The pace of home sales is up 14%. Prices in Western cities will rise 5.8%, with a 4.7% rise in the region.

Denser development is expected, and rental affordability will improve.

Tighter restrictions on Airbnb will help reel in rental prices in larger cities where alternative investors are buying properties with the purpose of renting them through Airbnb. Short-term rental restrictions are city-based. Alternative investment reports will help investors judge a market and offer a smarter way to purchase properties to rent on Airbnb.

Residents in Kansas earned more than $2 million through Airbnb hosting in 2016.

Senior women offering Airbnb listings are the fastest-growing demographic for the company. The company offers 2 million listings worldwide. The service is available in 191 countries and 34,000 cities.

The company expects 2 million guests will stay in an Airbnb listing on New Year’s Eve. Tighter restrictions on the growing company will hit older hosts that offer their empty space on the platform.

Author: Jacob Maslow

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