4 ms·

I think AirBnB would be a force to help people keep their housing, driving rents up but allowing people flexibility to generate more income if they are falling

by beal 9y ago

I think AirBnB would be a force to help people keep their housing, driving rents up but allowing people flexibility to generate more income if they are falling back. I'm interested to see how the company responds.

vkou 9y ago
> I think AirBnB would be a force to help people keep their housing, driving rents up but allowing people flexibility to generate more income if they are falling back. Until it becomes the new normal, and market rents will factor that in. Then, people who, for whatever reason, cannot rent half their apartment out on AirBnB will just be priced out.
- encoderer 9y ago
  Right. The new normal will be apartments all over Detroit getting rented on Airbnb. By who exactly?
bobthepanda 9y ago
Or it could fuel housing bubbles to new heights. The fact that there are now housing lenders who use projected AirBNB revenues in determining creditworthiness is worrying.
- dsacco 9y ago
  > The fact that there are now housing lenders who use projected AirBNB revenues in determining creditworthiness is worrying. Do you have a source for this?
  - bobthepanda 9y ago
    A startup doing this: https://www.nytimes.com/2017/09/18/your-money/mortgages/loftium-airbnb-down-payment.html https://www.nytimes.com/2017/09/18/your-money/mortgages/loft... And now apparently Fannie Mae is moving into this space: https://www.wsj.com/articles/gig-economy-grows-up-as-lenders-allow-airbnb-income-on-mortgage-applications-1518094800 https://www.wsj.com/articles/gig-economy-grows-up-as-lenders...
  - kdot 9y ago
    The irony. https://www.prnewswire.com/news-releases/quicken-loans-americas-largest-mortgage-lender-partners-with-airbnb-to-provide-new-home-financing-option-300595795.html https://www.prnewswire.com/news-releases/quicken-loans-ameri...
- beal 9y ago
  If the property is more valuable there is no bubble. I do agree some lenders might get this wrong, but an overall increase is pretty reasonable I think.
  - bobthepanda 9y ago
    Counting it as just straight up income is not correct, though, given that AirBNB is essentially the hospitality business, which is highly cyclical. The first thing people cut back on is traveling, and hotels are not afraid to race to the bottom to fill rooms.
- xapata 9y ago
  Politicians generally appreciate housing price increases. Homeowners are a key voting demographic.
s73v3r_ 9y ago
A single room rental? Quite possibly. A whole house/apartment rental? That person is likely not having problems.

by beal 9y ago

vkou 9y ago

> I think AirBnB would be a force to help people keep their housing, driving rents up but allowing people flexibility to generate more income if they are falling back. Until it becomes the new normal, and market rents will factor that in. Then, people who, for whatever reason, cannot rent half their apartment out on AirBnB will just be priced out.

encoderer 9y ago
Right. The new normal will be apartments all over Detroit getting rented on Airbnb. By who exactly?

bobthepanda 9y ago

Or it could fuel housing bubbles to new heights. The fact that there are now housing lenders who use projected AirBNB revenues in determining creditworthiness is worrying.

dsacco 9y ago
> The fact that there are now housing lenders who use projected AirBNB revenues in determining creditworthiness is worrying. Do you have a source for this?
- bobthepanda 9y ago
  A startup doing this: https://www.nytimes.com/2017/09/18/your-money/mortgages/loftium-airbnb-down-payment.html https://www.nytimes.com/2017/09/18/your-money/mortgages/loft... And now apparently Fannie Mae is moving into this space: https://www.wsj.com/articles/gig-economy-grows-up-as-lenders-allow-airbnb-income-on-mortgage-applications-1518094800 https://www.wsj.com/articles/gig-economy-grows-up-as-lenders...
- kdot 9y ago
  The irony. https://www.prnewswire.com/news-releases/quicken-loans-americas-largest-mortgage-lender-partners-with-airbnb-to-provide-new-home-financing-option-300595795.html https://www.prnewswire.com/news-releases/quicken-loans-ameri...
beal 9y ago
If the property is more valuable there is no bubble. I do agree some lenders might get this wrong, but an overall increase is pretty reasonable I think.
- bobthepanda 9y ago
  Counting it as just straight up income is not correct, though, given that AirBNB is essentially the hospitality business, which is highly cyclical. The first thing people cut back on is traveling, and hotels are not afraid to race to the bottom to fill rooms.
xapata 9y ago
Politicians generally appreciate housing price increases. Homeowners are a key voting demographic.

s73v3r_ 9y ago

A single room rental? Quite possibly. A whole house/apartment rental? That person is likely not having problems.