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Harvard Business Review published a the results of a research on the implications of short-term rental bans. In recent years, cities worldwide have experienced rising housing costs, increased tourism, and a surge in short-term rentals through platforms like Airbnb and VRBO. This has led to debates about the impact of short-term rentals on housing affordability, with some blaming Airbnb for rent increases. However, research suggests that while short-term rentals do contribute to rent growth, the impact is minimal, especially for vulnerable residents.
Studies in cities like New York show that short-term rentals add around $125 annually to the median tenant's rent, which is a small fraction of the overall rent increase over the past decade. The rise in rents is more significant among higher-income, educated, white renters in tourist-heavy areas where short-term rentals are common. Therefore, tight housing markets are seen as a more substantial factor in rent increases than Airbnb.
Despite this, short-term rentals offer benefits to both tourists and hosts. They provide tourists with more options, lower prices during peak demand, and unique accommodations. Hosts can earn income by renting out their properties, especially during high-demand periods like holidays.
However, concerns arise with properties exclusively used for short-term rentals, which can reduce the long-term housing stock and alter neighborhoods. While some cities have experienced this, such as Amsterdam and Barcelona, New York's short-term rental market is a small fraction of its overall housing stock.
The article concludes that outright bans, like in New York City, are not the most effective solution. Implementing caps allows cities to benefit from short-term rentals while mitigating negative impacts. Overall, balanced regulations can preserve the advantages of short-term rentals for tourists and hosts while safeguarding against excessive disruption to housing markets.
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