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This trend of professional Airbnb operators renting new condos as a business is part of the explanation for why land values in Toronto and Vancouver have spiked
by Tiktaalik 7y ago
This trend of professional Airbnb operators renting new condos as a business is part of the explanation for why land values in Toronto and Vancouver have spiked and distorted beyond local incomes.
A person can make substantially more money renting short term to a tourist than they can to a long term tenant, so accordingly the land valuation is less and less based on the underlying assumption of land being rented long term to a person that can only afford what a local income provides.
- dorchadas 7y agoIt's a huge issue in Ireland, too. Houses in Galway and Dublin are hard to come by partially (there are other factors, of course) because AirBnB operators can make more renting to the tourists for the summer than to locals for a year. With less to worry about, too (not to mention all the taxes they likely aren't paying). Furthermore, it also destroys the communities. See Barcelona for examples of that.