3 ms·

10%, or is this a trick question?

• xboxnolifes 3y ago
  It's not a trick question, and it's not as simple as matching the percentages. Rents can raise by more than 100%, but total supply caps at 100%. If AirBnB controlled every rental unit, rental prices wouldn't go up exactly 100%.
  • nprateem 3y ago
    Of course, but unless you're going to work out the price elasticity of supply/ demand, you might as well just assume it's one as a starting point.
• balderdash 3y ago
  My point was more about quantities - assume 1:1 elasticity, there are like 11,000 Airbnbs in nyc (assume all investor owned / 100% dedicated to Airbnb), that’s like 0.3% of the housing stock in NYC. If you sold them all tomorrow it would be like one months sales. My main point being that people expecting any sort of regulation on Airbnb to have an effect on pricing seems naive.
  • tmnvix 3y ago
    Assuming 0.3% and also assuming a rental vacancy rate of 3% (typically reported in many cities), that is a 10% boost to available rentals - so yes, it's significant.
    • balderdash 3y ago
      I think that’s the wrong metric, the velocity is much higher (20-30k new rentals/month which means all the airbnbs would consumed in like 1-2 weeks)