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> AirBNB increases the supply of housing. It does nothing to demand. That's your error, see also: http://en.wikipedia.org/wiki/Induced_demand http://en.wikiped
by mapleoin 13y ago
> AirBNB increases the supply of housing. It does nothing to demand.
That's your error, see also: http://en.wikipedia.org/wiki/Induced_demand http://en.wikipedia.org/wiki/Induced_demand
- jvm 13y agoThe mechanism for the induced demand is lower prices. That was my point.
- saalweachter 13y agoAnother factor: AirBNB increases the supply of temporary housing. It can only decrease the supply of 12-month leases. And since 12-month leases are in short supply...
- jvm 13y ago> can only decrease the supply of 12-month leases Temporary and long-term housing should be fungible. I've learned from other commenters that maybe they're not due to the NYC regulatory structure. If so then that's creating horrible distortions, and maybe that's also the reason why AirBNB is so popular.
- deleted 13y ago[deleted]
- saalweachter 13y agoYou can really only convert long-term housing into temporary housing. While technically the Holiday Inn is cool with me staying there as long as I want, they won't cut me a deal and charge me $400 / month instead of $100 / night. The cheapest, sleeziest roadside motel I have ever seen anywhere in the country was $30 / night. For a month that would be $900 with no discount, but I have a hard time imagining that an apartment comparable to that motel was even $300.