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Yep. There are solutions, but it's tough due to demand being so elastic in comparison to housing. In cities such as Reykjavik and Vancouver, they could tax Air
by Tiktaalik 8y ago
Yep. There are solutions, but it's tough due to demand being so elastic in comparison to housing.
In cities such as Reykjavik and Vancouver, they could tax Airbnb and divert the funding to create more housing, but housing construction is a physical process that takes time. Meanwhile in the short term rents are spiking.
- meheleventyone 8y agoIn Reykjavik they’ve imposed limits on how long you can let on AirBnB before you need to be licensed and for shared apartment complexes you need permission of your neighbors to run an AirBnB. The downside is that with high demand still from tourists and seemingly poor enforcement it’s still an issue. Anecdotally as a resident of downtown Reykjavik I know that a bunch of places around my house that did the AirBnB thing have stopped and returned to longer lets. Presumably because hotel capacity is reaching more of an equilibrium. Which could be a concern as there is a lot of development still not completed. On the positive side that could open a lot of spare housing capacity for local residents but at an obvious cost as the current housing bubble bursts.