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In an efficient market, the rental rate (controlling for unit quality) for long-term residents and short-term guests should differ only by as much as the landlo
by quotemstr 9y ago
In an efficient market, the rental rate (controlling for unit quality) for long-term residents and short-term guests should differ only by as much as the landlord gains from the predictability of a long-term resident's rent payment stream and the lower upkeep costs. This result just tells us that this difference is smaller than the pre-Airbnb gap between hotel and apartment rates.
Airbnb is removing friction and making the market more efficient. It's not some kind of force for evil.
- bobthepanda 9y agoExcept long-term tenants also have tenant protections that short-term guests do not for good reason. Markets often fail to price in externalities, such as the fact that short-term guests make terrible neighbors to long-term residents, particularly if they are in the same hallway of an apartment building. That's why hotels are regulated in the first place, because the citizens of the polity involved often don't want hotel guests anywhere near them.
- jarjoura 9y agoI haven't seen cities like NY or SF themselves proclaiming Airbnb is evil, or bad intentioned. It's not about friction of markets here, it's about a city having the capacity to house people. If the city was just concerned about getting a cut of the revenue they could just tact on hotel taxes and be done with it. Of course it's not a black and white problem, but I am far more sympathetic to cities struggling to house everyone who actually want to live there and could care less about airbnb's inventory problem.