AirBNB = RAISED RENTS

Th NYC Comptroller’s Office has released their report on the effect of AirBNB on rents in the city.

The report covers the years 2009-2016, and uses some interesting mechanisms to control for outside factors.

The takeaways (copied from the report):

 

  • For each one percent of all residential units in a neighborhood listed on AirBNB, rental rates in that neighborhood went up by 1.58 percent.
  • Between 2009 and 2016, approximately 9.2 percent of the citywide increase in rental rates can be attributed to AirBNB.

This rent hike particularly affected the neighborhoods with the greatest concentration of AirBNBs. The two neighborhoods with the highest absolute increase are Williamsburg and Greenpoint, where rent increased on average by $659.

Why it’s hot

The battle over AirBNB and selectively enforced regulations has been going on for awhile. Here we have hard data that in aggregate, AirBNB has a negative effect on NYC specifically. It will be interesting to see what happens moving forward.