> the only way the average person is able to improve their financial situation is to be more efficient
AirBNB doesn't provide the average renter a way to improve their financial situation in the long run.
For renters in non-regulated units (ie, no rent control/stabilization), if you can make an extra $200/week on AirBNB and your landlord knows it, he or she will simply raise the rent by $800/month the next time your lease is up for renewal. (Or, if he knows this in advance, this becomes the market rate for your initial lease to begin with). This is very easily corroborated by the studies showing that AirBNB led to an increase in rent in several cities (linked in other HN discussions, and also very easy to find elsewhere).
This isn't a statement about AirBNB; it's just basic economics. Absent regulation or other market "stickiness", the money eventually flows to the individual or entity who owns the capital - in this case, the real estate. (The etymology of the word "capitalism" is not coincidental!).
For property owners, the math is different (though still not as good for the owner as one might think).
> For renters in non-regulated units (ie, no rent control/stabilization), if you can make an extra $200/week on AirBNB and your landlord knows it, he or she will simply raise the rent by $800/month the next time your lease is up for renewal.
> This isn't a statement about AirBNB; it's just basic economics. Absent regulation or other market "stickiness", the money eventually flows to the individual or entity who owns the capital - in this case, the real estate. (The etymology of the word "capitalism" is not coincidental!).
Please provide evidence that this doesn't happen with normal split leases, normal renting of rooms out to people, using craigslist to rent temporary rooms, and is directly linked to AirBnb. Like many things in life "basic economics" is not "basic" when you have multiple equal solutions that bring about equivalent outcomes.
The same effects happen when people split rent [e.g. they can afford more, on average].
Also? They'd be able to do this without AirBNB and people did for a long time. AirBNB has only increased the supply & demand by making it easier.
AirBNB doesn't provide the average renter a way to improve their financial situation in the long run.
For renters in non-regulated units (ie, no rent control/stabilization), if you can make an extra $200/week on AirBNB and your landlord knows it, he or she will simply raise the rent by $800/month the next time your lease is up for renewal. (Or, if he knows this in advance, this becomes the market rate for your initial lease to begin with). This is very easily corroborated by the studies showing that AirBNB led to an increase in rent in several cities (linked in other HN discussions, and also very easy to find elsewhere).
This isn't a statement about AirBNB; it's just basic economics. Absent regulation or other market "stickiness", the money eventually flows to the individual or entity who owns the capital - in this case, the real estate. (The etymology of the word "capitalism" is not coincidental!).
For property owners, the math is different (though still not as good for the owner as one might think).