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It's nice to have efficient markets that effectively price things... however I think that perhaps it's not the worst thing in the world to accept market ineffi
by a-dub 11y ago
It's nice to have efficient markets that effectively price things... however I think that perhaps it's not the worst thing in the world to accept market inefficiencies in trade for the opportunity to not live in a shitty society.
My general sense is that merging the vacation/short term rental market with the long term home rental market puts serious upward pressure on the latter, thereby increasing scarcity of opportunity for middle income people in urban locales.
IMO, anything that puts downward pressure on the derivative of social mobility over time is ultimately putting upward pressure on the shittiness of society as a whole and really makes life pretty unpleasant regardless of socioeconomic class.
I'll take an inefficient housing market any day over that.
- bogomipz 11y agoVery well put. I think any long term rental resident in a large desirable urban area such L.A., New York, SF, etc. would agree. Its too easy to take the libertarian view when you aren't on the receiving end of that upward pressure that AirBnB puts on real long term residents of a city and their available selection of housing stock.
- woah 11y agoThe root of the problem is a lack of city housing stock caused by suburban sprawl in the last century, and NIMBYism in this one. Blaming a rental service for that is silly.
- a-dub 11y agoSure, cities are fashionable again. There's a generational shift and demand is high. Construction is slow. Growth in some places is opposed, by both people and governments. All of this results in limited supply. So I guess we agree that supply is limited. But I ask you this: If supply is critically limited, then how on earth is it silly to complain about a "rental service" that mainstreams alternative uses of housing stock where the net effect is even more reduction of supply. Alternate means of doing business are interesting, and new structures in society are also interesting. People can and should experiment. But if they're experimenting in areas that are already problematic and are doing so in ways that obviously make the problems worse... I'm going to heap blame on them whether you think it's silly or not.
- kansface 11y agoIts unclear how many of those units would turn into long term rentals. In in SF at least, I'm guessing well under half. Many, some, most? of the units are part timed occupied by the landlord. The commercial properties (run by businesses) account for about 1/3 of the listings. How many of those units would turn into long term rentals? It can take over a year and cost tens of thousands of dollars to evict a tenant. Throw in rent control and you have a market where it is often more attractive to not rent your vacant unit - particularly if you want to move into the unit or sell it within the decade. All in all, I would estimate that airbnb siphons up around 1% of the units away from long term rentals.
- sokoloff 11y agoI would think that a system that more efficiently allocates a scarce resource is good. That some people were previously benefiting from the existing inefficiency is a bug, not a feature, IMO.
- deleted 11y ago[deleted]
- makomk 11y agoIt's only more efficient if you tautologically define efficent allocation to be whatever the market decides. Remember, we're talking about an effect that pushes occupancy down, meaning the same amount of scarce resources are being used to satisfy fewer people's needs.
- deleted 11y ago[deleted]
- bogomipz 11y agoYou should maybe look up meaning of NIMBYism before throwing the term around as your usage is completely incorrect. Also suburban sprawl didn't "cause" a stoppage of inner city development. That's absurd. You sound like a shill for Airbnb and perhaps you are. Lastly nobody is blaming Airbnb but simply stating that it exacerbates an existing problem, which is a fact.
- kansface 11y ago> I'll take an inefficient housing market any day over that. You seem to advocate for exactly the same approach that got us into this mess. Instead of attempting to regulate supply and demand out of existence and blaming the "free market" after the fact, why can't we just build more houses?
- gozo 11y agoBecause demand is much more elastic than building? Also they are building, it's not just going to help much. Because there is still money to be made in making inefficient households into efficient airbnb rentals and shared flats for young tech workers having to move to Seattle if they want kids. When the money stops flowing you'll see change like redevelopment.