Airbnb is a fantastic alternative for people who are traveling or looking for a temporary place to stay without dealing with the hassles of a hotel. Airbnb was founded in 2008 in San Francisco California but didn’t gain real popularity until around 2011.
This concept of short-term renting has been around forever. But Airbnb has made it more popular and easier than ever, and just about anyone can be a host.
Many people have begun investing in additional properties in order to fix them up and rent them out as Airbnbs. A great way to earn extra money, right?
Maybe not. Many people and communities are now asking the question “How is Airbnb affecting the real estate market, homeowners, and renters?”.
How Does Airbnb Work?
To fully understand just how much of an effect Airbnb properties have on the real estate market, first, you need to understand how Airbnb works.
Because of how popular Airbnb is, from a consumer standpoint, you probably already know how an Airbnb rental works. You find a rental that looks good, you reserve the days that you need it for and then you pay a deposit (or you can pay the full amount up front).
It seems pretty simple. Right?
However, for an Airbnb host, it works a little differently. You need to have a property that is fully furnished and ready to rent out. And you can make whatever rules you want for the properties. Restrict pets that are allowed to accompany guests or even how many guests are allowed on the property.
And of course, there are taxes and the Airbnb fee that hosts need to worry about. But even after all of that, a property that would normally rent for 1,000$ to 1,500$ for the month can generate that same amount in as little as a week.
That is why so many people are deciding to become Airbnb hosts.
How Is It Changing the Real Estate Market?
So how exactly is Airbnb affecting the real estate market, home buyers, and rental properties?
Honestly, the question we really need to ask is “how ISN’T Airbnb affecting the real estate market?”
Homebuyers and renters all around the United States are being affected whether they know it or not. People looking to make extra money by hosting an Airbnb are buying up properties that would normally become someone’s home.
Even landlords are refusing to rent their properties to long-term renters because short-term rentals are more lucrative for them. Some landlords have even gone as far as evicting current tenants in order to use their apartment, condo, or home as rental properties for Airbnbs.
Some Airbnb hosts will even rent a property themselves and then Sublette it out as an Airbnb to make a profit.
This is affecting homebuyers and even current homeowners in a very real way. Some have even started calling this the “Airbnb effect”.
So what does this mean for home buyers and renters?
What Does This Mean for Home Buyers and Renters?
Renters, homebuyers, and homeowners all around the united states are feeling the effects that Airbnbs are having on their communities.
One good aspect of Airbnb is the tourist industry and the economic boost that some communities can take advantage of. But at what cost?
With current housing demands and the already struggling real estate industry, homes are already more difficult to find. Now, renters and would-be home buyers can’t find the homes they need to support and raise their families.
This is because the few homes that are on the market are being bought up by investors to use as short-term rental properties for Airbnb.
The competition is helping to price home buyers out of potential properties they could own. And then when those home buyers decide they need to find something to rent until they can afford a home, the rental prices are hiked significantly because of Airbnb.
So renters can’t afford to rent properties that they otherwise would. Or they must sacrifice in order to afford a place to live.
This is just one aspect of how Airbnb is negatively affecting real estate markets all around the country. And Florida is no exception. We are continuing to see rental prices and home prices fluctuate.
Even with some indication that the real estate market is starting to cool off, this will continue to be a problem. Homes and rentals alike are going to continue to be difficult to find and afford until short-term rentals start to slow down.
And honestly, Airbnb doesn’t seem to be anywhere near slowing down. This once great concept is harming more people than anyone could have predicted. And a lot of Americans don’t even know it.
Until more regulations and restrictions are put on Airbnb hosts, the problem will only continue to grow. No one can absolutely predict what will happen but community members can ask their local governments to start passing legislation restricting short-term rentals.
