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The cities that have done so are likely to experience the outcomes historically associated with rent controls — disaster. I’m just stating the obvious.
by pjkundert 2y ago
The cities that have done so are likely to experience the outcomes historically associated with rent controls — disaster.
I’m just stating the obvious.
- reitzensteinm 2y agoBanning or controlling Airbnb is simply not analogous to rent control. Assuming free market long term rentals and no NIMBY building restrictions, long term rental prices will fluctuate, and if the demand is sufficient, more units will be built. That your plan for a house with a rental unit attached isn't profitable under the new regime isn't a disaster, it's the market doing its job. If residents wanted it enough, they'd be willing to pay for it. There is no disaster by definition. You're not stating the obvious, you're talking your book.
- pjkundert 2y agoYour hypothesis, that AirBnB units are not fungible with long-term rentals, is not sound. I personally know property owners, large and small, and their properties are fluidly exchangeable between long and short term rentals. Reducing the production of new rental units will have the obvious result.
- reitzensteinm 2y agoIf you don't have rent control or NIMBY blocking construction, you've got a free market and everything will be fine. The legality of Airbnb is completely orthogonal to this. I'm not even suggesting that cities should ban or restrict Airbnb, just that doing so can be rational and business owners need to take the risk of this into account. Given the delta in profitability, the market does understand this. I did not claim that Airbnb units aren't fungible with rentals, that's obviously true, and rereading this discussion I don't understand how you believe I made that argument.