4 ms·

What happens when you build more supply, but increasing amounts of people just buy up the units not to live or rent out, but in order to run virtual hotel busin

What happens when you build more supply, but increasing amounts of people just buy up the units not to live or rent out, but in order to run virtual hotel businesses on Airbnb? The better supply side solution to increase available housing stock is to build more purpose built rental. This would eliminate the possibility of new rental supply turning into short term rental.

davidw 10y ago
If you keep adding supply, the bottom will fall out of that market as they compete with one another, and the market will balance out as they sell, or seek long term tenants.
- sbov 10y ago
  The question is, is it feasible to build enough supply for this to happen? I mean, if SF ever hit "affordable" on a median family income, the population would probably be tens of millions. Keep in mind that tearing down old housing and building new is not very cost efficient: you are paying for land, and the old structure (which you are tearing down), and the demo of the old structure. I live in LA, and my structure, which was built in the 70s, is still valued at more than the land it's built on.
  - davidw 10y ago
    > The question is, is it feasible to build enough supply for this to happen? Given current market prices? Absolutely.
golergka 10y ago
Wouldn't it just mean that they appropriately react to demand for these two categories of tenants, short and long-term?
exclusiv 10y ago
There's also not enough hotel rooms available for the tourism industry which is why renting as an Airbnb is quite attractive in many areas.
- IDanceOnAPole 10y ago
  If enough people keep getting stabbed in San Francisco, maybe the tourists will stay away! Only slightly not serious. Web search for "stabbing" and "san francisco"
hueving 10y ago
>What happens when you build more supply, but increasing amounts of people just buy up the units not to live or rent out, but in order to run virtual hotel businesses on Airbnb? Then airbnb prices decline or units go empty so listing on airbnb becomes unprofitable. Supply and demand is very real, it's not like some ideology that hasn't been demonstrated day in and day out. Please read up on an intro to econ!
- st3v3r 10y ago
  And what happens to the people in the meantime? How long does this take before we have a satisfactory outcome, which would be people not being priced out of housing?
  - hueving 10y ago
    If you chose to rent and cannot afford the neighborhood you live in, I'm not sure why you are entitled to be there at the expense of others who want to be there as well.
    - st3v3r 10y ago
      I'm going to turn that around on you: Why are you entitled to be there at the expense of others who are already there?

davidw 10y ago

If you keep adding supply, the bottom will fall out of that market as they compete with one another, and the market will balance out as they sell, or seek long term tenants.

sbov 10y ago
The question is, is it feasible to build enough supply for this to happen? I mean, if SF ever hit "affordable" on a median family income, the population would probably be tens of millions. Keep in mind that tearing down old housing and building new is not very cost efficient: you are paying for land, and the old structure (which you are tearing down), and the demo of the old structure. I live in LA, and my structure, which was built in the 70s, is still valued at more than the land it's built on.
- davidw 10y ago
  > The question is, is it feasible to build enough supply for this to happen? Given current market prices? Absolutely.

golergka 10y ago

Wouldn't it just mean that they appropriately react to demand for these two categories of tenants, short and long-term?

exclusiv 10y ago

There's also not enough hotel rooms available for the tourism industry which is why renting as an Airbnb is quite attractive in many areas.

IDanceOnAPole 10y ago
If enough people keep getting stabbed in San Francisco, maybe the tourists will stay away! Only slightly not serious. Web search for "stabbing" and "san francisco"

hueving 10y ago

>What happens when you build more supply, but increasing amounts of people just buy up the units not to live or rent out, but in order to run virtual hotel businesses on Airbnb? Then airbnb prices decline or units go empty so listing on airbnb becomes unprofitable. Supply and demand is very real, it's not like some ideology that hasn't been demonstrated day in and day out. Please read up on an intro to econ!

st3v3r 10y ago
And what happens to the people in the meantime? How long does this take before we have a satisfactory outcome, which would be people not being priced out of housing?
- hueving 10y ago
  If you chose to rent and cannot afford the neighborhood you live in, I'm not sure why you are entitled to be there at the expense of others who want to be there as well.
  - st3v3r 10y ago
    I'm going to turn that around on you: Why are you entitled to be there at the expense of others who are already there?