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At AirBnB's current scale this actually causes an annoying problem. It seems they have a non-negligible effect on the cost of rent. Since AirBnB does not have
by jamiequint 14y ago
At AirBnB's current scale this actually causes an annoying problem. It seems they have a non-negligible effect on the cost of rent.
Since AirBnB does not have the requirements listed by the OP above they are able to operate at a lower cost and capture demand that would have otherwise gone to hotels. This demand then fills up buildings that were originally intended to be multi-family residential buildings and are now effectively being used as hotels reducing apartment supply and driving up cost.
- civilian 14y agoYou're right and you explained it well, but I don't agree with the characterization of it being "annoying". It's just the market figuring out the best use of the space. But I also don't live in NYC... :D
- MaysonL 14y agoSo now maybe some hotels will realize they can make more as apartments?