Is an Airbnb rental uptick causing a listing shortage?
WASHINGTON, D.C. – March 10, 2017 – The American Hotel & Lodging Association (AHLA) released a report that examines the rise of commercial activity taking place on Airbnb nationwide. While the hotel industry sees Airbnb type rentals as competition, the study identified some recent trends.
The study, Hosts with Multiple Units – A Key Driver of Airbnb Growth, finds that Airbnb's business in Miami is moving further away from true home sharing: 89 percent of Airbnb's revenue in Miami comes from whole-unit rentals (ones where the owner isn't present during the time of the rental). The lodging association calls these "illegal hotels."
The study was conducted by CBRE Hotels' Americas Research, which is funded by the American Hotel & Lodging Education Foundation. It reviewed Airbnb operations from October 2014 to September 2016 in 13 of the nation's largest markets: Austin, Boston, Chicago, Los Angeles, Miami, Nashville, New Orleans, New York, Oahu, Portland, San Francisco, Seattle and Washington, D.C.
Study claims
- The markets with the highest share of total revenue derived from multi-unit hosts are Miami (57.9%), Oahu (53.5%) and New Orleans (42.3%).
- 89% of Miami Airbnb revenue comes from entire-home rentals.
- Revenue generated by multi-unit, entire-home hosts in Miami increased by 105% over the time study and now totals more than $110 million.
The hotel industry has taken a strong stand against Airbnb, which competes in many markets for tourist dollars, and it claims that Airbnb's expansion is one reason more affordable homes don't make it into the hands of resident owners. It's also a reason, they claim, that rents continue to go up.
"This report confirms a devastating national trend that is exacerbating the affordable housing crisis in cities across the country," says Peter Cohen, Co-director of the Council of Community Housing Organizations. "Affordable housing advocates from coast to coast agree: Airbnb in particular and the short-term-rental industry in general is facilitating a housing crisis by incentivizing property investors to convert homes and apartments into illegal hotels, thus decreasing the available housing stock and driving rent prices up.
The full report, Hosts with Multiple Units – A Key Driver of Airbnb Growth, is available for download on the AHLA website.
© 2017 Florida Realtors
