Airbnb Economic Impact

In short, lack of motivation in exchange for more red tape causes investors and landlords to move towards more profitable options. This movement of money and resources tends to negatively impact people trying to find a place to live, most notably the poor. The National Multi Housing Council (NMHC) states that prospective customers must pay finder fees to find a rental property due to a presumably growing scarcity of available housing. As if this were not bad enough, in some communities rental properties are handed down to friends and family, so they never quite leave the market. In order to obtain housing, new consumers are forced to pay “key money” and other fees. These costs tend to impact young, single, and poor families the most.

“I took a trip to Oakland, California and fell in love with the area. We stayed at an Air B&B for the three days of our stay and the house was absolutely beautiful, it looked like my dream home. Despite all the glitz and glamour around us we noticed a large amount of homelessness compared to Columbus. We found out that this property is not someone’s home but a house used strictly as an Air B&B. When you hear something like that and see the amount of homelessness it makes you wonder how many of these homes are strictly for show? So after researching I found out, the reason for the rampant homelessness can be attributed to large increases in rent. Even worse, the cause for the increase is due to Silicon Valley” (Kasongo, 2017). Unfortunately, rent increasing virtually overnight is the reality of many low-income families. This situation is called gentrification and is felt throughout the world, from the Midwest, East coast or even Western Europe, no region is immune to this process. Gentrification in the Midwest is extensive and wide causing the displacement of many low-income minority residents which can lead to even bigger issues.

Why is Ho’opili beneficial to our economy you might think? Ho’opili will be a new city that will consist of affordable housing to Hawaii’s residents. Here on the islands we are suffering from high cost of living and an even higher housing market. On USA Today’s Most Expensive states to live in, Hawaii ranks number one in the cost of living index and Housing index. To be able to live comfortably in Hawaii you would have to make about $122,000 a year. The average home value in Hawaii is around $520,000, and that’s about $420 per square foot. So you will have to pay a hefty price to even afford a home here in paradise. Here in Hawaii, a lot of people chose to rent

This study discusses the risks that college students can be exposed to when choosing off campus housing. Initially, this article presents the property owners of rental properties as individuals who do not take care of their properties and have no concern for the tenant. Further reading of this article finds that due to the high turnover with rental properties and college students there is a greater risk of the student becoming physically sick due to the environment within the rental property. “Globally, housing is the single most important environmental factor associated with disease conditions and higher mortality and morbidity rates (United Nations, 2007)” (Johnson, Cole & Merrill, 2009, p. 2).

The purpose of this project was to evaluate how the shift in businesses caused by gentrification affect the standard of living. In my paper, I will delve deeper into how gentrification affects displacement and homelessness, as well as, food insecurity and what impact this has on health. My team was tasked with observing signs of gentrification in the neighborhoods we mapped and collecting data about the existing businesses. I was responsible for comparing the data we collected with previous data regarding businesses in the same neighborhood.

The Bay Area has developed into one of the most rapidly increasing localized economies in the United States, where prices of everything have increased at a unprecedented rate. Since the inventions of the competing Apple and Microsoft companies started in the 1970s, technology has flourished and developed one of the most expensive areas in the world to live in. Because of the high paying jobs, it has attracted an unprecedented amount of people, skyrocketing the demand of housing in the area. This would ultimately cause a massive inflation that mainly affected home prices (and medical care). A debate has ensued due to whether the massive inflation related to housing is beneficial or detrimental to society as a whole.

First of all, gentrification is creating a lot of economic change. Many families are being evicted because of gentrification. An article Bring on the Hipsters from the Economist writes. “The case

First, In terms of the housing market, Airbnb increases rents in neighborhoods with a high density of Airbnb listings, and causes accelerated rent inflation. According to Lee’s study, in 2014, rents in seven most expensive neighborhoods in Los Angeles “were 20% higher, and increased 33% faster, than rents citywide.”

There are certain undeniable pros to a town having short-term rentals. Of course, it brings in revenue for the homeowner directly whenever he or she rents out the unit or an individual room. Towns can gain money from this by taxing or issuing permits for people who want to rent out units or rooms short-term. People who rent such units also could very well bring in money to our local economy, and more people can afford renting rooms or units short-term than staying in a hotel.

This homestay network has won a millions of hearts throughout the world. It has given a tough competition to its counterparts and has made a stand. The partnerships are progressing and are providing better services. A momentum of change is happening, for the service providers. They are glad about the idea of sharing their houses with people from all walks of life.

3. Make It Easier to Reject Renters: When a renter sends a request to a host to use their

Companies tend to increase their value by doing good deeds, no exception with Airbnb. In the aftermath of Hurricane Sandy that happened in November 2012, Airbnb partnered with New York City Mayor, Michael Bloomberg to offer free housing for the citizens. Airbnb built a site where victims register for housing and meet property owners with free housing. Additionally, Airbnb provided this service for free in addition to host guarantee for all properties listed. In the same year, Airbnb acquired NabeWise and Localmind. NabeWise is a city guide that gathers accurate information for specified locations, while Localmind is a location-based question and answer platform about specific locations online that post by users and will be answered by experts

Just as the treatment Uber and Grab were addressed by the BIR, DOTC and the LTFRB, the same may be made for Airbnb and home sharing companies. It is incumbent upon the government to make a memorandum circular and provide regulations that would be complete this time as to the enforcement of tax obligations.

Nonetheless, technology advances in gentrification can also have a negative side effect on the population. Gentrification brought a negative impact upon San Francisco in the past years. The side effects lead countless of citizens to

One benefit for renting an expensive site downtown would be that you would get more customers because you are in a busy area where people would see your restaurant more. More customers means more money to pay the rent on the expensive site and more money to pay your staff. One opportunity cost would be that to start out with you would be paying a lot of money because the site is expensive to begin with.