Unfortunately, the negative consequences of Airbnb can be seen both on a global scale for tourism, and also be felt by communities around the world. Let’s delve into how this sharing economy giant is affecting the real estate market:Let’s delve into how this sharing economy giant is affecting the real estate market:
Impact on Housing Availability:
Reduced Supply: Among landlords, some people introduce short-term rental Airbnb in long-term rentals, thereby potentially lowering available housing space for residents and especially at those areas favored by tourists.
Increased Rent Prices: With so few long housing, there is getting a great deal more difficult for residing to discover cost-effective housing.
Impact on Property Values:
Potential Rise: Growth in the number of tourists and requests for short-term rentals can result in appreciation of real-estate property values in the talked-about places.
Uncertainties: It is possible that in some places the demand for long-term housing caused by excessive short-term rental may bring down property valuation in the long-term.
Impact on Neighborhoods:
Transient Residents: A community that consists of a group of consistently changing Airbnb guests may no longer feel like the close-knit neighborhood it once was.
Party Concerns: The insubordinate dignity of the individuals living in the immediate neighborhood can not only cause noise nuisances but also disrupt the peace of residents.
The Future of Co-Existence:
Some cities through their regulations act seeking to overcome the afore addressed concerns and developing a trade between the traditional housing needs and the sharing economy.
The Bottom Line:
The impact of Airbnb on the real estate market is multi-dimensional. On the other hand, it can be seen as a way to bring economic benefits for some property owners who might not have such other ways of earning, and at the same time lead the way to housing affordability issues. As partnership between sharing economy networks and civil administrations gets stronger, the concept of responsible governance and green growth will facilitate provision of sustainable solutions not only for locals but also for tourists.
The blooming of the sharing economy affected industries significantly for instance, real estate. Today, platforms like Airbnb have revolutionized people’s way of renting property by providing more options and allowing brand new possibilities for both hosts and travelers to take advantage of.
One of the most true up elsewhere is the breakage that Airbnb has caused to anifgnt or hotel beds. Quite different from the past, one had no other option than to follow the long and at times too tedious process of locating tenants, arguing rental terms, and personally handling the property. Airbnb takes this process to the next level and facilitates it using an easy-to-use platform that unites travelers seeking short-term stays with hosts offering accommodation.
This change to short-term rentals has has the result, once again, to rattle the real estate industry. The case in point is popular destinations that are favourite to tourists. For instance, in places where a number of listings are made in airbnb, the traditional rental stock falls as a result of people selling their buildings on airbnb. This resulted in stronger competition in the rental market, which then pushed the prices up and made the situation much tougher for the longterm renters, who in the process found it a hard nut to swallow to locate an affordable place to live.
While on the one hand, Airbnb has proved to be a new way for the home owners to monetize their asset what they have not had before, it has on the other side created a number of issues with home owners’ rights and municipal regulations. By renting out homes to Airbnb renting, not only can the hosts collect additional revenue but they might also pay off a part or even all of a mortgage. In addition, this was most predominant in localities with high demand for short-term rentals, as homeowners could exploit the increased flow of visitors searching for distinctive and sensible options to stay for a short time.
What is even more impressive is the manner in which Airbnb management has disrupted the travel industry (conventional hotels being the key players).
