Executive Summary : New York And London Essay

1459 WordsNov 9, 20166 Pages
Executive Summary Since the emergence of Airbnb in 2008, concerns have been raised over the shortage of rental housing especially in big cities like New York and London. The claim is that due to increased participation of homeowners as Airbnb hosts, rental prices have surged dramatically (Booth, K., 2015). It has also been touted that Airbnb gives way for ‘illegal hotels’ that reduce availability of long-term flat rentals, particularly for low-income tenants (Masnick, M., 2013). This means more people are struggling to find decent housing and have to settle for properties that have safety hazards or poor rent security for an affordable rent. An expected outcome is an increase in urban homelessness. For big cities like London, there is certainly a need to regulate the market for rentals to prevent worsening shortage in rental housing. However, regulating Airbnb more strictly may not improve rental housing prospects as expected. There are other causes to this issue, least of which is Airbnb’s share economy methodology. Below I will outline the context surrounding the core issue of rental housing shortage, the role of Airbnb, and present my inference that regulating Airbnb more strictly will not solve the core issue. Alternate solutions that tackle basic income, property rights, and regulation of land and construction may be more suitable. Context and Relevance Rent problems occurred even in the 1980s. Urbanisation drives people into cities and it is a prolonged battle to
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