The Airbnb effect: why second homes have become so divisive 

Layoffs are the key to the next big recession. Job market is still Red hot and if we are to dip this will be what needs to change

I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.

“ Margaret Johnson Arndt is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.

you know nothing.

We have a situation where we're all stuck in a stalemate Boomers aren't going to downsize and sell their homes because of low interest rates and very high rents. It makes no logical sense to sell your home and pay a rent that's higher than what you're paying for a mortgage. Yet investors keep building luxury apartments because they anticipate Boomers who are going to downsize. No one else can afford the rents either. So all these flippers/luxury real estate corporations are trying to charge 3000, 4000, or 5000 for a one bedroom apartment are going to get a rude awakening. Of course, Millennials can't leave apartments for other apartments for fear of risking higher rents and moving costs. Many of them would like to buy houses or condos, but they're half a million dollars and out of their price range. Real estate investors keep building luxury apartments, which only raises the property value of an area. This exacerbates the problem because apartments that were once affordable are no longer affordable, pushing MIllennials further out of both the rental market. Zoomers aren't even in the game. They'll likely live with their parents until they're in their 30s. We're going to end up with a whole bunch of vacant luxury apartments and overpriced houses for the next 20 years. Basically, until Boomers die off and their inventory becomes available we will have a housing disaster.

I live in Amsterdam, I use Airbnb to host. Happy with the new rules, seems fair

Is it a maximum of 30 days or minimum? Seems like a minimum would make an impact more than a maximum.

@@pioneer7777777 as said ‘a max. rental period of 30 days’. Meaning you get 30 days per year to host. With a $200 average nightly rate, this means about $4.500 annually after tax, rendering it useless for investors.

Airbnb prices then jacked up with 4x less supply. The medicine is as bad as the disease.

Sounds like communism, which we now have here with Uncle Brandon/Owebama.

You can buy too be smart and compete

Government owns the zoning laws which control building.

Greed knows no bounds.

Hahaha Exactly. I did my part to shrink housing availability for locals, but I'll point finger at govt.

Small caveat in USA is the restrictions of zoning such as lot sizes , single family zoning, minimum parking requirements, all of which are outdated and harmful environmentally, and reduce the ability to increase supply by denser housing construction. Local zoning boards do this to artificially restrict the supply which increases their home values. Compare nyc metro to Tokyo for instance where zoning is federal, housing prices have been going down since 1980s. NIMBYs is the issue not Airbnb

did you consider its because those homes cost nearly 2 million

@@Lildizzle420 Yep, my point exactly. :-) These houses that would rent for $3k - 5k / month as local housing now get $2500/week from Air BnB. During Fantasy Fest in October, they can get $8k-$10k just for one week. Home prices were always increasing, but when AirBnB rentals took over Key West, home prices doubled overnight.

It's all over now. I've seen it from Alaska to Central America. The majority were homes a family could live in.

Those houses will stay empty even without Airbnb, the owner will just come for the holidays.

Slightly true, but I have seen this on the Hawaiian island of Kauai. Lots of vacation condos worth $1-2mil+ sitting empty. Ive spoken with owners, and the values of homes and land skyrocketed in the past few years. From 600-700 to 1-2mil. I did a quick airbnb search and there are over 3000 places available in Key West (April 14-20, 2024 +/- 7 days).@@matt16matt

I live in TX and make almost $250k a year but only enough to keep my mortgage and modest lifestyle. I never fancy a vacation or expensive car. I cannot imagine how struggling other families with below $70k per year are.

Well, when cost of living skyrockets but wages don’t match, this is what you find. My philosophy is, homeownership shouldn’t only be for the elite. If someone is willing to work, they should be able to buy a modest home. If you want something better, you get a better education or learn a better trade. There’s zero incentive to better yourself now because you can’t afford to live on minimum wage, and you can’t afford to live making double or triple that either.

​@mt00a 250k a year ? That is far from modest lol.

@@desertsun9008 The lifestyle can be modest even if the salary is not.

@@desertsun9008 I cannot afford a Jaguar car or a big Mercedes SUV, and don’t eat in fancy restaurant. I am wondering what other people do and make so that they drive Porche, Jaguar or Mercedes.

There is no way all homes will be owned by corporations in our life time.

@@DrewRueDoo maybe not our life time, but our children will likely never own a home.

Exactly…sadly most Millennials and Gen Z don’t vote. Just those that already “got theirs”

Should B. Free market should do its job, unfortunately violently. If rent pushed extreme high enough, ppl will leave unless tourist. So price Re-balance, location repurpose to its productivity efficiency frontier

That's the plan. The Great Reset. "You'll own nothing and be happy." 😁

Totally agree they straight ruined Tahoe

We have a noise monitor in our air b n b

We have a young guy that bought the house next door and he parties every night. What internet platform or policy maker can I blame?

Sadly the "AirBnB" effect means that people are LIVING and renting in the AirBnB's because they cant find rentals

​​@@socalstrrent an apartment you can't even watch a loud movie now When we buy we can be loud I've got music on all day on the property now .. all our neighbors too! Couldn't even use my sound bar to watch Law & Order without a "noise complaint" every day previously

@@Joce123 Exactly...and as a Air BNB user we abide by the rules.

How many new construction complex are there in your city? I think is not an issue of AirBnB but your local government interfering with new constructions.

In Greece the problem has nothing to do with goverment regulations & restrictions. For more than a decade all construction projects were abandoned due to the economic meltdown and now that they have resumed, they are not aiming for affordable housing, but mostly for wealthy foreign investors and "golden visa" applicants. The removal of more than 50k appartments from the housing market due to AirBnB and other such platforms is a major issue.@@leonardoplaza7677

I think you are blaming too much on AirBnb and the like. The housing situation is complex, and there are multiple reasons for the rents and house prices to increase so much. AirBnb is one aspect, but a very small one. It is the one msm loves to focus on because government does not want to admit that the hold up in construction of houses, due to bureaucracy and bad policies should bare the brunt of the blame. Certainly, there are pros and cons to anything like airbnb and tourism in general. I think the bigger problem is that there is not enough housing being built. In Canada- the price of housing would make your head spin (average rent in Toronto for a one bedroom apartment is $2,600/month, in Vancouver 3,000/month - small towns are hardly much lower. The average house price in Toronto is 1.1 million, and Vancouver 1.3 million- surrounding small cities/towns, again hardly much lower). The prices are outrageous. However, this is a problem that was present well before airbnb. Of course there are impacts of airbnb in the rental market- however, again- the problem is lack of housing being built. On the flip side- tourism is very important for places, and my village relies on this. It is a way to keep the local economy going (restaurants, bars, shops, tradespeople etc). Why is a hotel ok to have, and not airbnb's when you think about it? Individuals running airbnb's is a nice change, and for once people benefiting rather than a large corporation. If people are against airbnb- they should be against hotels too. The problem is lack of housing....due to lack of construction- and this has been going on for A LONG TIME. Airbnb's make up a small fraction of the impact on the general lack of housing!

@@hiddenhighlandThat's right! Build more houses and you'll se the price going down. But the construction rules in America are stupid Its almost impossible to build anything other than single-family houses in the majority of the land.

@@leonardoplaza7677 WINNER WINNER EXACTLY!!!!

I never used them. I always preferred hotels for the very reason you noted. The pendulum will swing back away from these 'trends' that people are now realizing are sucking the soul out of communities and basic needs.

Not hearing slamming hotel doors all night = amenity

Easy fix they will jus put it in another person name or corporations like they already do now

I think anything that is not owner occupied should have a higher property tax.

@@malcolmschick6364they do that in Texas already. It sucks, the city doubles your taxes if it’s not your primary. Funny thing is, they asses taxes on the previous year, so even if your house value drop, you still have to pay the new estimated value.

False. You put it in an LLC then your plan is ruined.

@@malcolmschick6364South Carolina it’s triples for investors

Is that the correct name "Kindred"? I tried Googling them and couldn't find anything with that name.

Make these people do just couch surfing and see what they say after the first 10 guests

They didn't talk to *WHO*? Right... Nobody has heard of Kindred.

Home swap? I am already disliking this concept

Solution----don't be a regular poor joe....You have no idea what you are talking about...if there is a housing shortage they can build more housing it is as simple as that....the problem is government bureaucracy....The market decides how many units are needed and the pricing of those units....and as far as a mortgage is concerned if you don't qualify then you don't get a mortgage....only the government lend mortgage money to unqualified people (2008). If the price is too high there wouldn't be any renters or owners.

Chinese suitcase money left LA a decade ago, when dad died. We sold our LA compound in 2017 in the east end of the San Gabriel valley in one of the safest, normal communities for 770,000. that WITH an RV garage and a double lot. Lot value is the key. IN LA is a county; lots of choices if you take the time to LOOK around.

Yup I used VRBO in early 2000s. Liked them. They got run over by Airbnb.

Vrbo was THE only option to rent vacation homes for about 2 decades.

That kind of pissed me off too lol but it’s CNBC and these stories are consistently poor, but entertaining

VRBO dropped the ball...bigly

The problem with what happened to VRBO was that it used to be a subscription service. I don't need a third party to handle my business. VRBO just sent leads to me and I worked out those details. VRBO was $500 *A YEAR* for this privilege. Greed always takes over though. I have my four doors on AirBNB and have for 5 years pretty much exclusively since VRBO didn't collect sales tax which was an additional headache among headaches.

Yup - Wealth Inequality - I've sent it first hand. 4 of us worked at a finance company in 2017 all nearly same assets and income. We all owned 2 houses. The 2 that took massive chances now own 17 properties, I own 2 still but have no chance of buying another. Avg people owning 17 houses the short term rent is just crazy.

​@@UneducatedGeologistsurely in Canada you can buy land and build one?

What about in some local suburb in massive county like alberta? Guess it depends on the quality u are looking for

Same in the US wealthy parents are buying their children homes if you aren’t born into money you’re screwed.

@@cwaddle yes I agree 👍. I should have mentioned very desirable areas. I own a home it’s not me I am talking about.

Which means there is demand for the product that financially outweighs renting to a local....which means more tax revenue for the municipality....and if you want to solve the problem have the government bureaucracy loosen its strangle hold on building new homes/multi family housing.

Have you ever been to Bangkok??? All they do is build housing probably a 100-150 projects going at any one time.

adding to that thought.....you can find airbnb rentals where there are no hotels at all.....many different locations...many different options that is what makes the airbnb experience totally different in my opinion....The problem is most of these commenters are idiots and know nothing...single dimensional thinking...and talking points they hear on CNBC.

Sounds like you need to save up for a downpayment.

Why not both?

Exactly. And the reason why it was cheaper before to rent airbnb is the lack of privacy that we have in a hotel. Now airbnb became even more expensive than hotels because landlords/corporations don’t live there !

No, it shouldnt.

"Government should regulate us more". They cry. And they wonder why things keep getting worse.

No, because your ideal would only benefit the rich and big corporations.

Yeah right. The solution to the problem created by the state is more state regulation hahahahaha

Maybe hotels should take half their property and put some as studio/bachelor apartments...just add a mini kitchen and then people could rent them for a few months at a time since they are not always using every room unless it's a busy season.

Airbnbs account for such a small percentage of the housing market. Here in America, the main problem is the FHA interest rate. The current interest rate is 7%. If you buy a $400,000 home, you'll pay $558,000 in interest.

Airbnb is a scapegoat for government policies which have inflated the housing market.

Agreed..

But this isn’t a board game. My dad came to this country with no money. Moved in with family. Bought a small plot of land across the street and built a house. They saved money on the cost by doing most of the work (like the framing) themselves. They did this over the course of 10 months by cashflowing the money my dad made from his job as a machinist while living rent free with family. NO MORTGAGE, NO LOANS. It’s easy to sit and complain and blame others for your problems. The fact is that most people today no longer have the skills, resourcefulness and family support that is needed to get ahead. They’ve traded family bonds and personal development for government dependency. You reap what you sow.

@@michaelcerean1990 - Sure, because EVERYBODY can live _"rent-free with family. NO PORTGAGE, NO LOANS"_ while building themselves up, right? I "reaped" built myself up _without_ access to living with any family, so your example isn't that great when it includes that.

I thought the same. She has found a way to justify what she does to herself.

There's also the obvious fact that you need to start smaller anyway before family can exist. A lot of couples buy one bedroom properties, then when the kid(s) grows, they scale up after equity grows or wages increase etc

Yes, starting small is how most people do it. I suppose we live in a world of greed, and people just want to have more and more. At the very core, greediness and fear of survival is what fuels all of this.

These institutional investors buying 30k in properties can now make more on air bnb running hotels without standards and taxes of hotels instead of renting long term. This takes inventory out for locals.

those investors then put the properties on air bnb lol. so yes, it is part of the problem

@@l.c.3150 I guarantee you they're not running Airbnb. They are buying for the equity and tax credit, and not for the monthly revenue. They are long term players.

True. There's no either/or here though. BOTH of them are the problem.

@@bonnielovely Institutional investor are in for the long term game and not short term. They are in for the equity and tax benefits. Google is free, so research before assuming things.

Disruption from parties too

Sounds like some conspiracy stuff you read. Crime is up everywhere and its not Airbnb, its the economy and policies.

Paint everyone with that same broad brush if you want to. Not everyone charges pet fees, cleaning fees, or makes anyone do chores but that narrative is so enticing when we work at McDonalds for $16 and hour.

That was exactly my experience in Malaysia recently. Shocked with the government taxes + Airbnb service fees.

Can I ask why no Uber? I get the problem created by AirBnB. But Uber?

@@VFAHSN there are many reasons: 1. They take the business away from the regular cabs 2. I don't believe the majority of the drivers are professionally trained or strictly vetted 3. For me, the difference in the price is not worth the risks

I like to throw the wet towel in the corner without worrying what the owner is going to say. That's why I like hotels. No walking on pins and needles.

Same here! Never liked 'Uber-anything' services, nor AirBnB. Your reasons for no Uber are also spot-on. I don't trust untrained drivers nor the condition of their vehicles either (little to no regulation). Also too many reports of sexual assaults committed by drivers (one is one to many already). When Uber first came out, I also didn't like the idea of signing up and having to add my credit card even if one was not using it frequently. I'd rather a 'pay as you go' which I think they have now, but still... Never sat well with me they'd have your card locked in back then. With hotels, I prefer their _service,_ booking directly with them, and the better chances of _security._ Also I'm not as likely to have sneaky hidden cameras installed in bathrooms/showers or bedrooms like private Air BnB residences. Too many perverts around infesting the world already as it is, doing that crap, and I'm sure as hell not going to _pay_ for that risk either.

@@pmb6667 I have similar reasons for always booking regular hotels, too. Much better service with much better security

Exactly. The homes that are sold and bought in my area would never be placed in the long term rental market anyway.. and the rent would be too expensive. Our town depends on tourism. Short term rentals are the biggest employer in my area. It definitely sucks that first time home buyers are left out but I don’t see a way that it can be fixed without second-home owners going broke. 🤷🏻‍♂️

Yup many areas are now becoming exclusive

Of course tourist areas are going to be expensive 😂

I disagree Imagine one middle class family who buy a home and keep it all for themselves, using it only 2 weeks a year or maybe more On the other hand, this woman buys it and let's 50 families enjoy it all year round. Each family pays the local community every week in their shops, cafes and businesses Clearly one is helping the community. Which use is better?

@@truth.speaker the one that isn't forcing people to pay for their life without providing the other with lasting shelter is definitely 100% wrong. Squeezing people at the very bare necessities of life is disgusting.

@@matthewmcclary7855 do you disagree with farming? Why not?

@@truth.speaker it creates a product needed for survival. Is the cost of food going up? Is every necessity for living going up? Did they figure out how to charge you for the air you breathe with taxes that go towards 0 emissions?

@@truth.speaker the guards of the prison are prisoners themselves. You are a guard. You will never understand and will try and fight for something you know is wrong.

Why??? It makes no sense......housing is market driven like most things in our life....the problem is the government bureaucracy....all you have to do if the market demands it is to build more housing!! Problem solved!

@@bsmiddy236 If you build more housing and 50% of them are being bought by corporations that want to STR, Lease to Own, or LTR I agree it will work but really slowly and the houses will begin to consume so much space. Eventually our urban footprints will start looking like Tokyo and the Corporations will never slow down their consumption. Their whole model is to rinse, repeat, and upscale.

you obviously know nothing about economics....of course it slows down consumption when there is no demand and yes expansion is a healthy sign. You can't upscale if there is no demand.....so if the demand is for 800.00 a month rental what does the corporation gain by trying to rent at double the demand price?

@@bsmiddy236 lol I'm definitely not a expert. What do you suggest? Just allow the free for all? That's fine with me too. What do you think is the potential downside of no regulation?

we are already regulated to death in this country....let the market decide. There is nothing stopping anyone who wants to build a house from going out and securing financing and building one. the government basically got out of the low income housing market because it cost too much damn money to keep up with the way people basically treat free housing....so they cam out with section 8 housing vouchers...but again I do no rent to Section 8 applicants due to government regulations and these people would never qualify for a rental it gets back to risk and reward and I'm not willing to take that risk. If you can get rid of the blood sucking, wealth draining government bureaucracy and let people build especially based on market conditions you just might be able get on a path to solving the government created housing affordability problem...that doesn't mean I even agree or acknowledge there is a problem to begin with.

If it's government funded social homes they can only be rented , so I don't understand your argument about people adding them to their portfolio.

That's truly remarkable! I would greatly appreciate if you could share some information about your financial advisor. I'm also interested in making positive changes to my finances this year, so any insights would be highly valuable to me.

Thanks for sharing, I just looked him up on the web and I would say he really has an impressive background in investing. I will write him an e-mail shortly.

Italy, France and Germany is not “the rest of the world” dude. You’ve traveled exactly nowhere in my mind…

Buy your second home in s poor foreing country. Your dollars/euros/pounds or whatever can get you real gems. The problem is that people always want to live, work and go on vacation in the same old legacy brand places.

LOL not sure when to STFU???

Yep. Totally agree. People travel too much.

Amen!!

I agree with you in principle. But if we turn all the lower class into "rent slaves", eventually we will get to a french revolution situation where the lower class will chop off the heads of the rich. I'd rather avoid that scenario

Yes, exactly!! So many young people live with their parents or in shared apartments with roommates, complain how they can’t afford an apartment, but at the same time they have to travel every 1-2 months to another destination and stay at an Airbnb. Traveling has become futile.

I stopped using Airbnb a while ago. Hotels are much better.

So, you buy your second home 🏡 Simple

You like to cook on vacation when you can explore and discover cool restaurants and cuisines? That opportunity is wasted.

Many hotels have now the ‘suite’ option with cuisinette

Nice 👍

Just curious...What state are you in that has the had regulations against landlords?

@@makesumwake Just everywhere there´s a politician trying to rip us off. I´m in NYC.

No tax contributions? Don't you have some kind of property tax there in England?

@dannydaw59 When you Short term rent, 3 days 7 days 2 weeksx4 days... EACH RENTAL HAS TO PAY TAXES to their Municipality... More than 50 % pay NOTHING because they are not registered. Nobody is checking, but SUPPLY AND DEMAND is going to FIX IT ALL 🍷

What country you live in ?

That's because economically we don't live in a democracy, those with capital rig the laws to make idle wealth while working people get nothing

When you are not there, okay, but some people buy up properties only to keep them out of the rental market to use for Air B&B.

And is this all the fault of airbnb? Housing bubbles happened long before airbnb, they are being used as a scapegoat. People should be free to rent out their property is there is a demand for it.