I mean the obvious solution is a reasonable process for opening a B&B or inn in different areas of town.
The issue with short term rentals is that they are self-reinforcing on the upside, where large deltas in housing prices disincentivizes long term leases, which encourages more short term rentals, which raises housing prices by perpetuating the shortage.
I think people should be allowed to operate a B&B if they want to, but they should be in the business of operating a B&B, not of side income while waiting for an appreciating real estate asset to mature.
Housing should be used as housing, and when it has become traded as a HODL asset, the market is not serving the public.
The way to solve the solution is to legalize density. Scarcity business models collapse when the marginal return approaches the marginal cost of production.
Since that’s not happening, we ought to not let people just jump in and out of the short term rental business, because it is self-reinforcing on the way up and on the way down. I think it’s good policy to reduce bubble prone industries where possible because the downside risks are non-trivial to the community.
The issue with short term rentals is that they are self-reinforcing on the upside, where large deltas in housing prices disincentivizes long term leases, which encourages more short term rentals, which raises housing prices by perpetuating the shortage.
I think people should be allowed to operate a B&B if they want to, but they should be in the business of operating a B&B, not of side income while waiting for an appreciating real estate asset to mature.
Housing should be used as housing, and when it has become traded as a HODL asset, the market is not serving the public.
The way to solve the solution is to legalize density. Scarcity business models collapse when the marginal return approaches the marginal cost of production.
Since that’s not happening, we ought to not let people just jump in and out of the short term rental business, because it is self-reinforcing on the way up and on the way down. I think it’s good policy to reduce bubble prone industries where possible because the downside risks are non-trivial to the community.