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THE RIGHT TO HOUSING, NOT VACATION HOMES  
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Sonali Kolhatkar
February 6, 2024
ZNet
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_ Can strict regulations on Airbnb solve the housing crisis? Probably
not, but they’re a good start. _

,

 

Americans have been on a vacation binge
[[link removed]] since
the easing of COVID-19 lockdowns, traveling for leisure in record
numbers, and generating a major boom for the tourism industry. The
vacation rental company Airbnb in particular, built on the
euphemistic-sounding idea of a “sharing economy
[[link removed]],”
is thriving. In the third quarter of 2023, the company posted
its highest-ever profits
[[link removed]] on
record.

But increasingly, cities are seeing rising rents, unaffordable home
prices, and increased homelessness. Authorities are linking such
housing-related crises in part to Airbnb, and are passing strict
regulations
[[link removed]].

I’ve rented several Airbnb homes over the 15 years since the company
was founded. In the early years, staying in other people’s houses
was a sort of subversive act of rebellion against corporate hotel
chains. During the most terrifying pre-vaccine months of the COVID-19
pandemic, short-term home rentals felt significantly safer than
hotels, amid fears of the deadly airborne virus spreading among
unmasked crowds in elevators and hotel lobbies. The privacy,
convenience, and lower cost often enabled tourists with tighter
budgets to enjoy family vacations with members of their
chosen pandemic pods
[[link removed]].

But, while Airbnb rentals may offer some financial respite for
low-budget vacationers, their counterparts in the neighborhoods they
visit are often negatively impacted by higher-cost housing prices and
rents. What’s more, Airbnb hosts are increasingly professional
landlords
[[link removed]]—wealthy
elites and corporate entities that scoop up large numbers of
properties and turn big profits by renting them out to travelers.

Even individuals managing a single property are now encouraged to
expand vacation rental management into a full-time business.
“Becoming an Airbnb property manager can be a fulfilling career
path—and you can also make a lot of money with it,” claimed
[[link removed]] one company
[[link removed]] specializing in training professional hosts.
“It’s a relatively low-risk, low-investment venture that can turn
out to be extremely lucrative.”

Indeed, just as companies like Uber were once touted as a way for
working people with cars to earn a little extra spending cash, Airbnb
offered the promise of supplementary income for those with an extra
room or converted garage. Now, however, the market is being
increasingly dominated by a small number of corporate “hosts”
[[link removed].] and professional
property managers
[[link removed]].

Airbnb homes are available all over the world but the United States is
most deeply affected. Airbnb CEO Brian Chesky said in late 2023,
“[O]ur penetration in the United States is significantly higher than
our penetration in many other countries. And we think there’s a huge
amount of growth if we could just get Airbnb to even a fraction of the
percentage of penetration that we have in the United States.” In
other words, the U.S. is the model that Airbnb wants to replicate
everywhere else in its quest for profits.

Stephanie Synclair is an appropriate symbol of what Airbnb has wrought
in the U.S. The 41-year-old Black mom from Atlanta recently made the
news
[[link removed]] for
becoming a home-buyer, not in her own hometown, but in Sicily. In
spite of the language and cultural barriers, Synclair purchased a home
on the other side of the planet, in part because she found Sicilians
to be warm and welcoming, but mostly because of the huge price
difference. In spite of having a budget of $450,000—no small
sum—Synclair had no luck buying a home in Atlanta, where properties
are among the most overpriced
[[link removed]] in
the nation. She now plans to retire in her $62,000 home in Palermo,
Sicily.

Atlanta’s housing market is dominated by investors and cash-rich
corporations who scoop up practically every home
[[link removed]] listed
at $500,000 or less, many of which are then transformed into Airbnb
listings for tourists. Precious Price
[[link removed]],
an Atlanta-based host, initially saw Airbnb as a pathway to building
wealth, particularly for Black entrepreneurs like her who faced racial
discrimination from the financial industry. But Price soon realized,
according to a profile in the New York Times, that her rental property
was part of the housing crisis that her beloved city was experiencing.
She has since pivoted to long-term rentals aimed at residents rather
than vacationers—an enterprise that is less profitable but more
ethical.

Not only does Airbnb fuel housing crises in cities, it does so along
racial lines. A 2017 study [[link removed]] of New
York City by the watchdog group Inside Airbnb concluded that the
company’s model fuels racism in the housing market. Analyzing the
demographics of rental hosts in the city, Inside Airbnb concluded,
among other things, that “[a]cross all 72 predominantly Black New
York City neighborhoods, Airbnb hosts are 5 times more likely to be
white.” Further, “[t]he loss of housing and neighborhood
disruption due to Airbnb is [six] times more likely to affect Black
residents.” White New Yorkers have benefitted from renting out
housing as hotels, while Black New Yorkers are disproportionately
hurt.

To curb such inequities, New York City, which already had strict rules
on the books about short-term rentals and subleases, passed a law
[[link removed].] in
2023 requiring Airbnb to ensure that hosts obtain permission to rent
out housing. If it fails to do so, both the host and the company are
hit with hefty fines.

The New York Times
[[link removed]] explained,
“In order to collect fees associated with the short-term stays,
Airbnb, Vrbo, Booking.com and other companies must check that a
host’s registration application has been approved.” And, “hosts
who violate the rules could face fines of up to $5,000 for repeat
offenders, and platforms could be fined up to $1,500 for transactions
involving illegal rentals.”

It was an admission that the earlier set of rules was simply not being
enforced—as we continue to see in cities like Los Angeles
[[link removed]]—where
hosts flout rules with little consequence. But now, at least in New
York City, the onus is on the company, as well as the hosts to comply.

While this means potentially higher hotel costs for out-of-town
visitors, it could free up rentals for long-term residents. According
to the Guardian
[[link removed]],
this may already be happening, just months after the law went into
effect in September: “[T]he city’s rental costs are backing off
from record highs, as the vacancy rate increases to a level not seen
in three years—good news for folks looking to sign rental leases.”

While cheaper vacation stays are certainly desirable for those of us
who love to travel, vacationing is a privilege in the U.S. More than a
third of Americans, as per a 2023 survey
[[link removed]],
are unlikely to take a summer vacation. And of those, more than half
say they simply can’t afford it. A 2019 Economic Policy Institute
study
[[link removed].] pointed
out that “Airbnb might, as claimed, suppress the growth of travel
accommodation costs, but these costs are not a first-order problem for
American families.” What _is_ a first-order problem is affordable
housing.

And, while regulating Airbnb will not mitigate all economic injustices
facing Americans—such as suppressed wages and a lack of
government-funded health care—it certainly will move the needle in
the right direction.

ZNetwork is funded solely through the generosity of its readers.

Americans have been on a vacation binge
[[link removed]] since
the easing of COVID-19 lockdowns, traveling for leisure in record
numbers, and generating a major boom for the tourism industry. The
vacation rental company Airbnb in particular, built on the
euphemistic-sounding idea of a “sharing economy
[[link removed]],”
is thriving. In the third quarter of 2023, the company posted
its highest-ever profits
[[link removed]] on
record.

But increasingly, cities are seeing rising rents, unaffordable home
prices, and increased homelessness. Authorities are linking such
housing-related crises in part to Airbnb, and are passing strict
regulations
[[link removed]].

I’ve rented several Airbnb homes over the 15 years since the company
was founded. In the early years, staying in other people’s houses
was a sort of subversive act of rebellion against corporate hotel
chains. During the most terrifying pre-vaccine months of the COVID-19
pandemic, short-term home rentals felt significantly safer than
hotels, amid fears of the deadly airborne virus spreading among
unmasked crowds in elevators and hotel lobbies. The privacy,
convenience, and lower cost often enabled tourists with tighter
budgets to enjoy family vacations with members of their
chosen pandemic pods
[[link removed]].

But, while Airbnb rentals may offer some financial respite for
low-budget vacationers, their counterparts in the neighborhoods they
visit are often negatively impacted by higher-cost housing prices and
rents. What’s more, Airbnb hosts are increasingly professional
landlords
[[link removed]]—wealthy
elites and corporate entities that scoop up large numbers of
properties and turn big profits by renting them out to travelers.

Even individuals managing a single property are now encouraged to
expand vacation rental management into a full-time business.
“Becoming an Airbnb property manager can be a fulfilling career
path—and you can also make a lot of money with it,” claimed
[[link removed]] one company
[[link removed]] specializing in training professional hosts.
“It’s a relatively low-risk, low-investment venture that can turn
out to be extremely lucrative.”

Indeed, just as companies like Uber were once touted as a way for
working people with cars to earn a little extra spending cash, Airbnb
offered the promise of supplementary income for those with an extra
room or converted garage. Now, however, the market is being
increasingly dominated by a small number of corporate “hosts”
[[link removed].] and professional
property managers
[[link removed]].

Airbnb homes are available all over the world but the United States is
most deeply affected. Airbnb CEO Brian Chesky said in late 2023,
“[O]ur penetration in the United States is significantly higher than
our penetration in many other countries. And we think there’s a huge
amount of growth if we could just get Airbnb to even a fraction of the
percentage of penetration that we have in the United States.” In
other words, the U.S. is the model that Airbnb wants to replicate
everywhere else in its quest for profits.

Stephanie Synclair is an appropriate symbol of what Airbnb has wrought
in the U.S. The 41-year-old Black mom from Atlanta recently made the
news
[[link removed]] for
becoming a home-buyer, not in her own hometown, but in Sicily. In
spite of the language and cultural barriers, Synclair purchased a home
on the other side of the planet, in part because she found Sicilians
to be warm and welcoming, but mostly because of the huge price
difference. In spite of having a budget of $450,000—no small
sum—Synclair had no luck buying a home in Atlanta, where properties
are among the most overpriced
[[link removed]] in
the nation. She now plans to retire in her $62,000 home in Palermo,
Sicily.

Atlanta’s housing market is dominated by investors and cash-rich
corporations who scoop up practically every home
[[link removed]] listed
at $500,000 or less, many of which are then transformed into Airbnb
listings for tourists. Precious Price
[[link removed]],
an Atlanta-based host, initially saw Airbnb as a pathway to building
wealth, particularly for Black entrepreneurs like her who faced racial
discrimination from the financial industry. But Price soon realized,
according to a profile in the New York Times, that her rental property
was part of the housing crisis that her beloved city was experiencing.
She has since pivoted to long-term rentals aimed at residents rather
than vacationers—an enterprise that is less profitable but more
ethical.

Not only does Airbnb fuel housing crises in cities, it does so along
racial lines. A 2017 study [[link removed]] of New
York City by the watchdog group Inside Airbnb concluded that the
company’s model fuels racism in the housing market. Analyzing the
demographics of rental hosts in the city, Inside Airbnb concluded,
among other things, that “[a]cross all 72 predominantly Black New
York City neighborhoods, Airbnb hosts are 5 times more likely to be
white.” Further, “[t]he loss of housing and neighborhood
disruption due to Airbnb is [six] times more likely to affect Black
residents.” White New Yorkers have benefitted from renting out
housing as hotels, while Black New Yorkers are disproportionately
hurt.

To curb such inequities, New York City, which already had strict rules
on the books about short-term rentals and subleases, passed a law
[[link removed].] in
2023 requiring Airbnb to ensure that hosts obtain permission to rent
out housing. If it fails to do so, both the host and the company are
hit with hefty fines.

The New York Times
[[link removed]] explained,
“In order to collect fees associated with the short-term stays,
Airbnb, Vrbo, Booking.com and other companies must check that a
host’s registration application has been approved.” And, “hosts
who violate the rules could face fines of up to $5,000 for repeat
offenders, and platforms could be fined up to $1,500 for transactions
involving illegal rentals.”

It was an admission that the earlier set of rules was simply not being
enforced—as we continue to see in cities like Los Angeles
[[link removed]]—where
hosts flout rules with little consequence. But now, at least in New
York City, the onus is on the company, as well as the hosts to comply.

While this means potentially higher hotel costs for out-of-town
visitors, it could free up rentals for long-term residents. According
to the Guardian
[[link removed]],
this may already be happening, just months after the law went into
effect in September: “[T]he city’s rental costs are backing off
from record highs, as the vacancy rate increases to a level not seen
in three years—good news for folks looking to sign rental leases.”

While cheaper vacation stays are certainly desirable for those of us
who love to travel, vacationing is a privilege in the U.S. More than a
third of Americans, as per a 2023 survey
[[link removed]],
are unlikely to take a summer vacation. And of those, more than half
say they simply can’t afford it. A 2019 Economic Policy Institute
study
[[link removed].] pointed
out that “Airbnb might, as claimed, suppress the growth of travel
accommodation costs, but these costs are not a first-order problem for
American families.” What _is_ a first-order problem is affordable
housing.

And, while regulating Airbnb will not mitigate all economic injustices
facing Americans—such as suppressed wages and a lack of
government-funded health care—it certainly will move the needle in
the right direction.

_Sonali Kolhatkar is an award-winning multimedia journalist. She is
the founder, host, and executive producer of “Rising Up With
Sonali,” a weekly television and radio show that airs on Free Speech
TV and Pacifica stations. Her most recent book is Rising Up: The Power
of Narrative in Pursuing Racial Justice (City Lights Books, 2023). _

* Housing Crisis
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* Airbnb
[[link removed]]
* high rents
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*
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