1. Airbnb profits are dominated by big commercial landlords who raked in $168 million in just one city.
- According to a report by the New York State Attorney General, large-scale commercial operators on Airbnb “dominated the platform, generating 36% of all rental transactions and collecting 37% of total revenue – or $168 million.” NYS Attorney General Report: http://www.ag.ny.gov/pdfs/Airbnb%20report.pdf
2. Airbnb gives big landlords the upper hand by taking what would be available housing off the market for more than half the year in cities like New York, San Francisco, Los Angeles and Portland.
- According to Inside Airbnb, listings are available in Los Angeles 274 days a year; 233 days a year in New York City; 216 days a year in San Francisco; and 255 days a year in Portland. “Entire homes or apartments highly available year-round for tourists, probably don’t have the owner present, could be illegal, and more importantly, are displacing residents.” Inside Airbnb: http://insideairbnb.com/
3. Commercial operators renting multiple units control 30% or more of Airbnb listings their biggest cities.
- According to Inside Airbnb, 40% of listings in Los Angeles are multiple listings; 30% are multiple listings in New York City; 35% are multiple listings in San Francisco; and 39% are multiple listings in Portland. “Hosts with multiple listings are more likely to be running a business, are unlikely to be living in the property, and in violation of most short term rental laws designed to protect residential housing.” Inside Airbnb: http://insideairbnb.com/
4. Real estate moguls can make big bucks off Airbnb, as most rentals are concentrated in neighborhoods rapidly gentrifying and with rents rising at some of the fastest rates.
- In just three Manhattan neighborhoods – Greenwich Village/SoHo, Chelsea/Hell’s Kitchen and Lower East Side/Chinatown – accounted for more than 40% of all hosts’ revenue or about $187 million. NYS Attorney General Report: http://www.ag.ny.gov/pdfs/Airbnb%20report.pdf
5. Airbnb gives big landlords an incentivized excuse to evict longtime tenants because they can make much greater profits off lucrative short-terms rentals.
- According to a report by the San Francisco Board of Supervisor’s Budget & Legislative Analyst’s Office, “Housing market rental rates in San Francisco have been increasing significantly over the past few years so that for some landlords that may already be inclined to evict their tenants to capture current full market value rents, an additional incentive exists due to the higher revenue that could be generated through short-term renting” Notices of eviction increased from 2,039 to 2,789, or by 37 percent, between 2011 and 2014. San Francisco Housing Report: http://www.sfbos.org/Modules/ShowDocument.aspx?documentid=52601
6. Thanks to Airbnb, real estate moguls don’t have to worry about affordable housing cutting into their profits because Airbnb is growing faster than affordable housing can keep up.
7. There’s a reason real estate moguls with multiple buildings love Airbnb – they make up an average of more than $20,000 a year renting entire homes, which is much more profitable than what regular tenants make for renting single rooms.
- “Rates for full apartment rentals are significantly higher than those for single rooms and income after expenses ranged from $15,000 to $31,000.” Smart Asset Report: https://smartasset.com/mortgage/where-do-airbnb-hosts-make-the-most-money
Don’t Take Our Word for It, Read Testimonials Here:
- “We have a dwindling stock of rent-controlled units in San Francisco. Any of those precious few units going to visiting tourists rather than permanent residents certainly adds to the housing crisis here.” – Steven Jones, Slate, “More Guests, Empty Houses”
- “In my time here, I’ve seen about 20 percent of the housing stock become unavailable, through weekend rentals and out-of-town owners,” Marfa resident and Presidio County Judge Paul Hunt told a public meeting recently. “Forget affordable housing—we need available housing.” – Judge Paul Hunt, Slate, “More Guests, Empty Houses”
- “Instead of having someone live in that house who’s contributing to the community, you’re turning the house into a place that gets rented out a couple of times a month.” – Cat Cox, Slate, “More Guests, Empty Houses”
- Audrey Smaltz, a longtime Manhattan resident, testified before the Housing and Buildings Committee that entire floors of her building on West 55th Street were now occupied by visitors who cycled through on vacation. “My friends and neighbors are being replaced by strangers and tourists thanks to websites like Airbnb and others,” she said. – Audrey Smaltz, New York Times, “Hearing Pits Tenants Who Denounce Airbnb Against Those Who Profit From It” (is there a different Audrey quote, this one seems to be more about safety than rents going up etc)