Is AirBNB Really Worsening the Housing Crisis?

An anonymous reader shared this report from the BBC:

On 21 June, Barcelona mayor Jaume Collboni announced plans to ban short term rentals in the city starting in November 2028. The decision is designed to solve what Collboni described as 'Barcelona's biggest problem' — the housing crisis that has seen residents and workers priced out of the market — by returning the 10,000 apartments currently listed as short-term rentals on Airbnb and other platforms into the housing market... It's all part of a wider theme: around the world. Airbnb — which dominates the short-term rental market with more than 50% of all online bookings — and others, including VRBO, Booking.com and Expedia.com, are being scrutinised at the same time as questions are being asked about who tourism is for, and where the balance lies between benefits for tourists and locals alike...

Recent years have seen a backlash against the brand, which is blamed for pushing up housing prices and affecting locals who feel they have been forced to live next door to unregulated hotels... The question is: does banning or restricting short-term rentals actually reduce housing prices or affect housing stock? Harvard Business Review's study on the impact of the New York City ban, published earlier this year, concluded that in this case, short term rentals are not the biggest contributor to high rents, and that regulations, rather than bans, would offer better benefits to the city and locals alike. One clear result from the city's ban has been that hotel room rates have hiked to a record average of $300 per night.

So why are tourism authorities and city councils doing it? Perhaps the real reason is that it's not just about the numbers, it's about how local people feel about tourism... Successful on paper or not, these bans send a signal to local people that politicians are listening to their concerns and will prioritise them over tourists. There is an alternative to outright bans, though. Many destinations, including Berlin, restrict owner-occupiers to a 90-day maximum rental period over a year, effectively allowing part-time hosts to continue to make a supplementary income while preventing professional hosts from buying up housing stock and turning it into full-time short-term rentals. The issue for all countries moving in this direction, including the UK, which proposes something similar, is about regulation. How do you do it and how much extra does it cost to do so?

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