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The human v. algorithm power dynamic here is pretty uneven. The prospect of getting an instant offer from these companies is probably a net-positive for folks w

The human v. algorithm power dynamic here is pretty uneven. The prospect of getting an instant offer from these companies is probably a net-positive for folks who are facing serious financial hardship (e.g. from lost rental income that was paying their mortgage), but the same system that enables it also really encourages unethical algorithmic low-balling. Will a Redfin/Zillow data scientist use new coronavirus cases / county in their pricing model? Should they?

Analemma_ 6y ago
People who rent out Airbnbs which aren’t their primary residence, especially if they took out a bunch of debt for it, are squeezing the housing supply and driving up costs, so I’m not gonna shed too many tears if they get screwed by the algorithm. Let them eat a huge loss as a warning to others so they’re wary to try it again.
- jhenkens 6y ago
  We need minimum owner-occupancy rules for vacation rentals.
  - mperham 6y ago
    Many locales already have them, including my city. Airbnbs are only legal if the owner lives on the property. This ensures Mom and Pop only, not over-leveraged speculators.
    - jfk13 6y ago
      Does it ensure that in practice, or only in theory?
      - ashtonkem 6y ago
        Also, AirBnB has put a lot of effort into dodging local regulations.
joncrane 6y ago
The CEO's comments seemed to indicate that the pricing was only to "build in some margin" for unexpected events, as opposed to "squeezing as much juice out as possible." Having said that, publicly traded companies exist to maximize profit and if extra-lowballing property owners in the hardest hit areas maximizes profit, what should stop them?
lotsofpulp 6y ago
> Will a Redfin/Zillow data scientist use new coronavirus cases / county in their pricing model? Should they? Same answer as “should I pay more for my airline/hotel/car rental than the lowest they are willing to sell for”. I know my customers are taking into account the new demand curves, I don’t see why I wouldn’t, not others wouldn’t...unless they want to be on the wrong side of a mispriced transaction.
peder 6y ago
There are already people and companies lowballing offers, with Redfin and other algorithmic players joining the game, it actually increases prices and improves the liquidity of home ownership.
_curious_ 6y ago
What is "unethical algorithmic low-balling." ?
jrockway 6y ago
I'm not a Redfin/Zillow data scientist but I'll buy your beach home for $1.
jiveturkey 6y ago
eh? You can't just throw that out there so carelessly. What is unethical about it?

Analemma_ 6y ago

People who rent out Airbnbs which aren’t their primary residence, especially if they took out a bunch of debt for it, are squeezing the housing supply and driving up costs, so I’m not gonna shed too many tears if they get screwed by the algorithm. Let them eat a huge loss as a warning to others so they’re wary to try it again.

jhenkens 6y ago
We need minimum owner-occupancy rules for vacation rentals.
- mperham 6y ago
  Many locales already have them, including my city. Airbnbs are only legal if the owner lives on the property. This ensures Mom and Pop only, not over-leveraged speculators.
  - jfk13 6y ago
    Does it ensure that in practice, or only in theory?
    - ashtonkem 6y ago
      Also, AirBnB has put a lot of effort into dodging local regulations.

joncrane 6y ago

The CEO's comments seemed to indicate that the pricing was only to "build in some margin" for unexpected events, as opposed to "squeezing as much juice out as possible." Having said that, publicly traded companies exist to maximize profit and if extra-lowballing property owners in the hardest hit areas maximizes profit, what should stop them?

lotsofpulp 6y ago

> Will a Redfin/Zillow data scientist use new coronavirus cases / county in their pricing model? Should they? Same answer as “should I pay more for my airline/hotel/car rental than the lowest they are willing to sell for”. I know my customers are taking into account the new demand curves, I don’t see why I wouldn’t, not others wouldn’t...unless they want to be on the wrong side of a mispriced transaction.

peder 6y ago

There are already people and companies lowballing offers, with Redfin and other algorithmic players joining the game, it actually increases prices and improves the liquidity of home ownership.

_curious_ 6y ago

What is "unethical algorithmic low-balling." ?

jrockway 6y ago

I'm not a Redfin/Zillow data scientist but I'll buy your beach home for $1.

jiveturkey 6y ago

eh? You can't just throw that out there so carelessly. What is unethical about it?