Is AirBNB pushing rental prices up? – VisualPolitik EN

Is AirBNB pushing rental prices up? – VisualPolitik EN

AirBNB is one of the fastest-growing startups
when it comes to expanding internationally. To get a better idea of their crazy fast growth,
AirBNB was founded in California in February 2008. Just 3 years later, in February 2011, 75%
of their business was outside of the US. In comparison, Facebook needed twice as much
time to consolidate their international presence. No matter where you’re watching this video
from, I’m sure you’ve used AirBNB at some point. Just in the last decade, the website has registered
over 400 million check-ins. Believe me when I tell you that not many companies
can say they’ve changed an entire industry the way AirBNB has… and in so little time. In theory, the idea couldn’t be more brilliant. AirBNB allows everybody to turn a house into
a hotel. Thanks to this, a lot of people are able to
travel for way less money. But not only that! It has also created a brand new generation
of small business owners. Today, hundreds of people worldwide live off
of their earnings from AirBNB. In fact, according to many studies, AirBNB
has created more jobs than it has destroyed. But wait a minute because not everything is
sunshine and rainbows… If you thought that the AirBNB revolution
had no negative consequences… you’d better think again. Activists took over Airbnb’s headquarters
in San Francisco to protest evictions Exactly! Throughout the world’s cities, platforms
against AirBNB are surfacing. In fact, we’ll soon see how many cities
are banning or restricting AirBNB. But the question is… why? Well, people mainly complain for two reasons. One is that they just don’t wanna have tourists
in their neighbourhood. They complain about the noise and the mess
some tourists make. But the biggest reason is the alleged increase
in the rental prices. And, believe me, this can be a serious problem. I’m sure many of you already know what I’m
talking about. There’s a global trend: most of the World’s
biggest cities are experiencing a rise in rental prices that just keeps getting higher. Now Xander is going to give us more information
about this. Of course, Simon, you see… cities like L.A.
or San Diego have experienced rent increases of more than 15%. The same goes for other cities like Memphis
and Reno. But this isn’t just an American thing! In Berlin, rents have doubled in just 10 years. The same is happening in Madrid and Barcelona. And the question is… Why? Why are rents getting so expensive? Well… it makes sense to believe that AirBNB
has something to do with it. Maybe it’s not the only factor. But it could be a very important one… right? At the end of the day, owners can make much
more Money from tourists than from tenants. According to AirDNA, an analytics website
that analyzes tourism rentals, the average price for a night in Barcelona is 187 euros. The average occupancy rate is 81%. With these figures in hand, an owner in this
city could make up to 55.000 euros a year. In Spain, this is a high salary. In other words, with fewer flats for rent,
prices go up. It’s just supply and demand. And truth be told… it’s really hard to
study this topic. Why? Because it’s hard to find reliable data. In order to prepare this script, we spent
literally, more than two months researching. And, finally, we used two types of sources:
academic studies, some of which have data straight from AirBNB, and AirDNA. That said, I want to thank YNNON TAL from
CEVRO university in Prague for helping us. I also want to thank AirDNA for providing
us all the data we needed. Maybe some of the numbers we have been using
are not extremely accurate but these were the most precise numbers we could work with. So Today’s question is… How much is AirBNB to blame for rent prices
going up? Today we are going to answer this question
but, before we do, let’s take a look back at history. CITIES AGAINST AIRBNB Once upon a time, two guys sharing a flat
in San Francisco couldn’t pay their rent. What did they do, then? Since they had an empty room, they decided
to rent it to tourists. Back then, there was a conference in the city. So they turned this spare bedroom into a small
Bed and Breakfast for the people attending the conference. Since the only bed they could offer was an
inflatable mattress, they called the website they eventually created ‘AIRBNB’. The idea couldn’t have gone any better. So these guys decided to share their idea
with the rest of the world. Initially the idea was to host tourists at
their house for money. In fact, even today there are a lot of people
who can pay their mortgage thanks to putting a room up on AirBNB. But the story doesn’t stop here! As soon as this platform was born, many people
realized there was more business to be made here. Think about it… if you can make money with
a room… what about the entire flat? This is how an unexpected trend was born:
owners renting an entire apartment to tourists! And make no mistake. This approach is not in the minority. According to AirBNB, 56% of the offerings
in New York are entire apartments. In Barcelona, these listings make up 57% and,
in Los Angeles, almost 70%. And you might say… but how is this possible? You see, managing an AirBNB apartment is a
job in itself: you gotta make renovations to the flat, keep it clean, give the keys
to the guests… If you’re an owner and you don’t have
a lot of time… Don’t worry! There are also companies that will manage
your Airbnb for you for a commission. Thanks to this, all the cities on this planet
have been filled with thousands of AirBNB apartments. To get a better idea of just how numerous
these listings are, in Barcelona, alone, there are more than 21,800 AirBNBs. And you might say… is that really that much? Well… in 2011, Barcelona had 177,000 houses
for rent. Now, in 2019, there might be more. But using 2011 as a reference, we could say
that around 12% of residential rental houses are now for tourists. And this is where the controversy starts. Barcelona Finds a Way to Control Its Airbnb
Market But we aren’t just talking about Barcelona! For example, in 2016, Berlin passed a bill
that banned AirBNB throughout the entire city. Basically, in order to host tourists, you
had to ask for a licence from the city hall. And those were highly restricted, with fines
as high as 100,000 euros for anyone caught hosting without one. In 2018, they softened this legislation. But rentals are still very limited. You can have an AirBNB property but, if you
wanna have a second property, you have a 90 day limit. Something similar is happening in Los Angeles,
New York and Japan. Yes, you heard that right, Japan has put a
national limit on all of its AirBNB listings. And now you might wonder… is AirBNB really
influencing rents in the cities? The answer is… obviously yes! But that’s not the real question. The real question is… How much is it affecting the rental prices? And this is where we enter the beautiful world
of nuance. You see, the most serious study that we have
on this topic was conducted by the University of California in 2018. They researched AirBNB’s impact in the city
of Boston. Here’s their conclusion. we show that a 1% increase in Airbnb listings
is causally associated with a 0.018% increase in rental rates (…)While these effects may
seem very small, consider that Airbnb’s year-over-year average growth is about 44%. The study focused on Boston, but let’s extrapolate
those numbers to Barcelona. Again, this is not going to give us an accurate
figure at all. But, it should, at least, help us get an approximation. Using the data from AirDNA, we know that the
flat offerings for tourists in this city has increased by 22% since 2016. This means that AirBNB has contributed to
a 0.44% increase. Nevertheless, rents in Barcelona have raised
by 11% in this same period. How is this possible? How is it possible that AirBNB has such a
small effect on rental rates? Let’s check it out now! AIRBNB’S BIGGEST MYTH While we did the research for this video,
we called a friend who owned an AirBNB in Malaga, a very touristy city in Spain. He makes an average of 5000 euros a month. This is a pretty decent salary for Spain. So everybody might think AirBNB is a pretty
solid business, right? Why not start doing it yourself? Yeah! Do it! Be Rich like our Spanish friend!!! Well… not so fast, cowboy! Things are not that easy! Imagine you have a flat in NYC and you rent
it out on AirBNB. Everybody wants to spend New Years Eve in
Times Square so, in December, you’ll make a good chunk of money. But hey! Then you have January and February and the
city is empty. Don’t worry! You’ll compensate for it with summer earnings,
right? Summer is a big time for tourism everywhere! And yes, this is true. But wait a minute! Because you aren’t the only one who came
up with that idea. In summer everybody is putting their flats
on AirBNB. For example, in February 2017, New York had
8,500 listings. In December, those went up to 19,000. Later, in February 2018, it went down again. Do you see what we see? AirBNB’s main strength is, at the same time,
its biggest weakness… there are no entry barriers. Everybody can start a Business here! And this explains news like this. Airbnb hosts are having a hard time gouging
guests for the Super Bowl In this case, we’re talking about the 2016
SUPERBOWL, which was celebrated in Santa Clara, California. All of a sudden, thousands of football fans
were willing to pay whatever in order to spend a night in the city. Hotels were full. So thousands of owners decided to list their
flats for tourists. Just a weekend could be enough to make a month’s
salary… who wouldn’t do this, right? But that was the thing… everybody did it. So supply saturated the demand. And prices went down. This explains why, despite the way things
look, prices have been stabilizing since 2017. OF course, there is seasonality a different
times of the year. But July 2017 was not so different from July
2018 or July 2019. Yes, yes, yes… having a hotel can be a hell
of a business. But tourists are not infinite. So if you were thinking of jumping into the
AirBNB bubble… I have bad news for you: the golden times
are already over. At least, in the cities where we had access
to data: Los Angeles, New York and Barcelona. Does this mean that you can’t make money
on AirBNB anymore? Of course not! And if you had nightmares about cities full
of AirBNB listings and no more flats for rent… you can sleep soundly. It doesn’t seem like this is going to happen
anytime soon. But wait a minute because there’s something
else! If you look at these maps, there’s something
you might notice. Yes, there are AirBNB listings in all the
neighbourhoods. For example, on this map of New York you can
see how all of Manhattan is covered in offerings. But Queens and the Bronx are almost empty. And this is not all! Do you see how there are two types of balls
on the map? You have the purple ones and the blue ones. The purple ones are entire listings and blue
ones are individual rooms. If you pay attention, you’ll see a clear
pattern. The further we get from the center, the less
purple and the more blue there is. So yes, in the most touristy areas, which
are also the most expensive, owners would rather rent for tourists. But the further you get from those areas,
the more often people use AirBNB to get some extra income. So that being said… where does AirBNB have
the biggest impact? Of course, not in the middle income or poor
areas! AirBNB has the biggest impact on the rent
prices of the most expensive neighbourhoods. And this explains news like this. Neighbours of SANT ANTONI, in Barcelona, have
been complaining about tourism for years. In order to illustrate this point, a civil
platform has created a ‘MAP OF SHAME’ that signals some of the tourist-hosting flats
in the neighbourhood. In this case, SANT ANTONI is a hood in the
centre of Barcelona.If AirBNB has a general impact of 0.4% on the rental price, perhaps
the figure is higher here. So in conclusion, there are many reasons to
doubt that AirBNB has such a huge impact on rental prices. Of course, there are many other externalities
we could discuss. But rent increases are not one of them. But the question that we still haven’t answered
is… if not AirBNB… what is driving rent increases in the world’s biggest cities? We will answer this question in a future video. If you don’t want to miss it or any other
posts, subscribe to VisualPolitik and hit that bell button. Meanwhile, I’ll leave you that question
here… Why are rental prices getting so expensive? How can we solve this issue? Please, leave your answer in the comment section
below, and when we publish the video on that topic, you can check if your answer is similar
to ours. Also, don’t forget to visit our friends
from RECONSIDERMEDIA.COM, the podcast that provided the vocals in this episode that were
not mine. If you liked this video, give us a thumbs
up and, as always, I’ll see you next time.

Comments (100)

  1. Supply and demand.

  2. Broke Millennial, go live in the caves if you can't afford rent! I also moved out of the city.

  3. "Mith" ??? "I" ask "Y" 😉

  4. Important topic to highlight but several mistakes.. just to name a few. Graphic says MITH but should say MYTH. Video mentions Boston but shows video of Citicorp tower in Manhattan. Then there's where the video mentions the "Saint Anthony" Sant Antoni neighborhood of Barcelona but the narrator says Saint Anthony. Ahem.

  5. Oh please, greed is impacting the increase. Air bnb is just the excuse rental owners are using…that coupled with property management companies. I have 2 rentals and my inlaws have 5 rentals. I know how greed works. Nobody is forcing these people to raise their prices except they see potential to make more and dont care who they screw over as long as they make more money

  6. All human problem stem from human flaws. Humans are always trying to make excuses to take away blame from themselves.

  7. 8:11 Mith or Myth ?

  8. This is the first video I've seen in the last 6 months that was well-researched. Nice job.

  9. So, hotel owners think that airbnb is actually competing against them. Interesting but unrealistic. Maybe they should ask their governments why do they raise taxes and why other expenses keep growing. Ok, airbnb is gone and poor folks who could never afford their hotel rooms stop visiting the city and then what? Will it change anything?

  10. I would be more radical and ban people owing a second home and ban non-permanent residents purchasing homes

  11. For a youtuber you really do have the worst camera, quit being such a cheapskate and presenting us with this carp quality!

  12. Scarcity is also an issue, of course; rental rates and availability go hand in hand. In Vancouver we have 1% rental vacancy and our 1br rent is, on average, $2100. Even people who are considered ideal tenants (couple with stable double income, good credit, good references) can take months to find a new place, and they don't have much choice.

  13. land owners lobby to create artificial scarcity by preventing new development with BS regulatory measures. prices double. meanwhile they scapegoat AirBnB, and point to a study they funded saying that airbnb increased demand and thus price (even tho… it would at most have had a single digit percent impact, by just about anyone's math.)

  14. Rents are going up because there’s billionaires who see the lack of / slow new building and heavily regulated new building which drives the price up … ? Also in the UK there’s the help to buy and first time buyer schemese which are inflating prices and globally there’s just the general bubble pumping of property prices

  15. Greedy Rich assholes accumulating residential homes to earn even more profit. Sure, supply for shared rooms might increase. But entire homes in city centres have a complete monopolies of these landlords because of which residents of the city can't live there at an affordable rates. These are the real leeches of the society which your video completely missed. It focused on stuff like how it is difficult to make into business if you are sharing room in suburbs which let's be honest isn't the real problem cities have with the system of Airbnb (renting entire places is not sharing)

  16. Personally hate AirBNB because i lived in Barcelona and people would constantly confuse room number and floor and since spanish reverses the order, and I would have to deal with drunk people at 2-3AM telling them to ring 2-1 not 1-2 on a daily basis, also my neighbor was an old spanish lady that thought I was one of the people living at the AirBNB in the building (which was illegal in barcelona) So she tried to report me to the authorities and then i had to deal with that fiasco and eventually leave the apartment and Spain due to corrupt legal nightmare of trying to repeal to a court and show them my address VS the real AIRBNB address on their website, it took several months and i couldn't renew visa or anything during this time… Serious please dont use airbnb pls!

  17. Pyongyang doesn't care about Airbnb.

  18. 3:03 Hiding from mom?

  19. The return on investment on airbnb is minimal, in a mayor city the price of buying an apartment, furnishing and maintaining it (property taxes, utilities, etc..) is so high that your better of renting it in a regular fashion

  20. In New York City it Illogical to have Air Be and Be,

  21. My rent is $1700 a month. I camped for the summer and hosted for the summer to off-set the rent. It was a tonne of work. Some guests are jerks. Some neighbours are jerks. Then I stayed at two places (they sucked) My take-away is that I will only stay at name-brand hotels from now on. Standards are a good thing.

  22. Very good! thanks!

  23. Airbnb just exposed the poor land policies in most cities that have contributed more to slowing down development of new properties to meet the rental demand.

  24. Why rents are higher?
    1. Rent control
    2. Building restriction
    3. Increased urbanization

  25. Tourists are a huge economic factor in those big cities. So overall the local People Profit from them.

  26. Why is this even a question. Of course AirBNB pushes up rental prices, but only in areas where a lot of people rent AirBNBs.

  27. The problem is not rental prices, but the price of houses in the center of cities. They become really expensive to buy because of their AirBnb potential. Also because of this, old people are being evicted from their homes.

  28. make airbnb fares lower and lower and so on , cause of competition… and: leave rents alone (talking to airbnb). Thanks Simon for another good video.

  29. The banks control rents and mortgages. The government's need to put a caps on this global runaway garbage. Especially, in corrupt America.

  30. Too much Immigration. Infinity, genocidal levels of immigrants. Ban open borders, then rents will stabilize, people can afford children again. Ban the globalists.

  31. Rent increases could be down to increased pension ages/state pension age. People need to find an alternative, safe monthly income. Also it feels like we are going to have to do something which could drive competition. Cheers Boris!

  32. Can you make a video about Sudan please? And the economical potentials it has now that a new government is leading

  33. Rental Prices are so high because of a lack of supply, most of the big cities save for ones in Texas have a TON of regulations on what can be built where, and how. Not to mention state and national regulations.

  34. "if its not Air Bnb, what increases rent prices in the big citis" in Germany… it is mass immigration, and the fucked-up monetary policy of the european union

  35. AirBNB host here. AirBNB’s impact is insignificant in my opinion. Higher rental prices are caused by higher property prices. And higher property prices are caused by major central banks easing policies (lowering interest rates) making it cheaper to borrow money, pumping up the demand. That’s pretty much it!

    What AirBNB actually changed is segregation of areas into “close to a tourist trap” (short term AirBNB rentals) and “locals live here” (long term rentals). If you have a property for rent, depending on property’s location it makes more sense to rather rent short term or long term.

    If anything AirBNB kicked out local renters from tourist traps, but also gave massive competition to hotels, which in return had to lower their prices.

  36. In my area, rental prices are being driven by supply and demand. It is difficult and expensive to build and there are a lot of restrictions on growth. That means that when things are built, only expensive things are built. This drives up prices.

    And I thought the major complaint about AirBnB was not rental prices but the competition with hotels because they don't pay the taxes that hotels do.

  37. Bad extrapolation. Barcelona has tourism all year long. there is no bad month for tourism

  38. I find airbnb raises prices in the historic centers that were completely in decay with an aged population. This happened in Portugal with previously uninhabitable areas where no one wanted to live in, now being invested in and highscale. Thus increasing the general rents

  39. pls make a video on current Indian falling economy and rise in religion fanatisim ..

  40. Hey man. I'm from Saudi Arabia and you said in a video in 2015 that Saudi Arabia will be bankrupt in 3 years…. Ah I'm not bankrupt yet. Infact since then I got a 25 percent raise 😅

  41. I love how you said that 5000 euros a month is a ''pretty decent'' salary here in Spain. The truth is 1600-1800 is actually pretty decent, 5000 is totally ridiculous

  42. To answer your question: yes. Sure there are other factors. That is not the point, right ? Nobody is saying "we used to live in heaven and then came AirBnb" so let´s stop the "but what about" arguments, ok ? In tourist cities like Barcelona, for instance, many people stoped renting their flats to locals and prefer renting it to tourists via AirBnb (and other platforms ).

  43. I refuse to use services like AirBNB or ride-sharing services.

  44. Rents are only expensive because of zoning laws that prevent a functioning market from developing in housing

  45. The real reason for opposition to AirBNB and Über is the same one. -A desire to milk every industrial citizen for as much as possible through licensing…

  46. Rental prices in the big cities are high for two main reasons. Big cities have the most new jobs which attract people and it is very difficult to build new housing in big cities due to regulations and lack of land. If somehow we could build more dense housing in big cities and spread the jobs around to smaller more affordable cities rents would become more affordable in big cites. Unfortunately, no one seems to know how to do that on a big scale. Even if some genius figured out a way to do the above their would be a lot of opposition from landlords and homeowners who benefit from high housing costs.

    One person's income is another person's expense so their will always be a power struggle between those who are paying out money and those who are receiving that money. It is this basic struggle that makes me pessimistic that this problem will ever be solved.

  47. Jesus, 2 months of research!!

  48. epic video like always!

  49. Rental prices can only be effectively reduced with an increase in supply. This can be done by abolishing most zoning laws, streamlining building regulation, and implementing a land value tax (not a property tax), such as a ULT as recommended by the New Physiocrats.

  50. I think rent prices are increasing just bacause of increasing demant and supply not keeping up. Urbanisation is happening at a rapid pace. People are moving to bigger cities for job opportunities. So, when one moves to a city for a better life, one probably will not afford to buy a flat, so one rents it, thus increasing demand. However supply is slow to react if it is possible in the first place. Building a house takes years with all the paperwork, especially if the city has strict zoning laws. Singapore can be the most extreme example of this. Strict zoning laws prevent developers from building new house, so the rent price there to put it simply is INSANE.

  51. In Amsterdam there are many many expats, where their employer doesn't really care how much their home costs. There's an imbalance between supply and demand. The same goes for (my home town) the Dutch city of Utrecht. Many expats and students from abroad. Yes it is very good that your country is attractive and to pull in the best talented people. It is not good for the average Joe. Property and rental prices have doubled here in 4 years. Salaries of course have not.
    Now I myself am lucky to have bought a home during the credit crunch for like next to nothing compared to today's property rates, young local people that finished college and have their first job, cannot afford a normal house. They earn too much for social housing, but can't buy a proper apartment either. So they end up living at their parents until way into their 30s. Not a nice way of starting your adult life and start a family.

    @visualpolitik, you should do some research about the Dutch housing market in the large cities, a prime example of how it can turn to shit

  52. Alleged Rents going up because of Air BNB
    Is like blaming
    Alleged Climate change for making my cat pregnant. …

  53. However you need to do the statistic city by city and to see each characteristics.

  54. Rental prices are one of the biggest issues for younger people in developed economies.

    In the UK I'd speculate that the huge increases are a result of fairly low supply of new housing, especially in the built areas where space is limited. Coupled with increasing urbanisation pushing up demand in smaller areas.

    Couple that with fairly stagnant middle/low wage growth in the last 10 years & you have a perfect storm.

    Property prices increase forcing more people to rent instead of buy. More renters pushes up rental prices & incentivises taking properties off the market to rent them out instead. This forces more people to turn to renting, the cycle continues.

  55. Airbnb is destroying our cities! Our city centres don't have locals anymore! The population is revolted!

  56. "The Stranger" a publication in Seattle, covered this topic in 2016. Not sure how much has changed since then… I've heard it's more difficult for the Chinese to park money outside of country these days. But their series started here:

  57. Digital nomads are to Blame

  58. Everybody is waiting for the video on the colonial history of Great Britain:
    Millions of death and replaced Aboriginals. Millions of death Indians, Africans, native Americans , Arabs etc..etc the killing field of the UK people.

  59. Because of Airbnb, around 30 hotels are closing down in my capital city

  60. Make video of Indias diplomatic victory or Jammu Kashmir and increasing relationship with west

  61. 7:03 That reminds me a joker 😂😂

  62. Bad $$, cause homelessness no communities

  63. Please stop endorsing The Hypocrite Twins channel. Did you watch the latest video and the stream of tasteless lesbian jokes?

  64. Upcoming Rent Control video, then. I read the spoilers by Thomas Sowell.

  65. Damn, Masterpiece Theater! Learn how to spell “myth”. I thought you Brits knew how to spell.

  66. This site charge no commissions 100% free.

  67. you need to make another video on the kashmir issue

  68. I love AirBnB. A factor to its success is also the degree at which the legacy hospitality industry has dropped the ball on changing travel demographics, and so far show no intention in picking it up: they persist in catering to that very 20th century model of either the single businessman, or a couple on a romantic holiday. They don't seem interested in for example a group of friends or a family travelling together, and wanting a real house with a living room, a kitchen and perhaps a garden to live as actual human beings together. If anything they don't want guests to have those things, and instead spend money in their overpriced restaurants and lobby bars.

  69. BTW, a little more caution to just partotting university research seems appropriate. It literally went like: "AirBnB is growing. Rents are rising. Therefore AirBnB is causing rents to rise." If my daughter did that in grade school she wouldn't get very high marks. It's the old researchers joke of plotting the number of pirates against global temperatures, and then establishing that the world needs more pirates to fight global warming. AirBnB's success in big cities and rising property prices may both be symptoms of the same underlying mechanism, that society places a crazy and increasing value on old city / inner city living. Not just tourists but also big corporations are at it and securing management living spaces right downtown, no matter the cost. If someone's viewpoint is that inner cities must remain viable residential areas to low income people then please just vote for your local communist party and make it so. It's really not just AirBnB, which is more a symptom of this skyrocketing valuation than it is the cause.

  70. Fuck. I wanted to invest in a flat and join airbnb.

  71. 03:03 any update on the girl who was caught on camera? Damn, she's now a stock video!

  72. These f***s got Toronto as a tourist jungle just waiting to be explored. Its awful!!!

  73. NO, I have not used Airbnb, nor will I ever. It encourages people to violate the law, and by my participation, profit from it. There are reasons why the hospitality industry has the laws, regulations, and taxes it does. But Airbnb, like most companies in the so called "gig economy", are just a wordsmith excuse to bypass taxes, safety, worker rights, and a host of other concerns. Just because you call yourself other than hotel doesn't mean you are.

  74. Loose monetary policy is the ultimate culprit. Foreign investment is also part of the picture, but ultra-low interest rates and quantitative easing has really taken the cake.

    It didn't have to be if supply could expand, but enter zoning and development restrictions. Together it has been a perfect storm!

  75. who spelt myth at 8:12 ?

  76. Could you do a video on resource based economy and the Venus Project

  77. In other news – horse breeders are complaining about cars taking over their market share.

  78. Regulation is usually the source of inflation.

  79. Another fine entry in the "Defending Capitalism with Simon Whistler EN" series.

  80. how to lower rental prices, build more affordable housing!

  81. 8.12 mith or myth?

  82. Demand is much much higher than supply as the housing construction hasn’t really recovered since the 2008 crisis. (At least in the Netherlands)

  83. Airbnb is the biggest parasite on established tourism industries. Most Airbnb operators forces evictions and homelessness, doggy Airbnb who provide average accommodation, don't pay local city and central government taxes, don't comply with local fire service regulations, etc and is contributing to over tourism on major tourist destinations.

  84. Rental prices are rising because of stupid regulation. Stupid land use regulation that Progressives push "to protect the little people". Bootlegger- and – Baptist. In reality, the Progressives are paid off by cronies who want to keep the prices high. Instead just remove inane regulations that require minimum dwelling sizes, limit the # of living units in a defined area, etc. The market will fix the problem if a bumbling bureaucrat doesn't have the power to suppress it.

  85. 12:30 the answer is rent control

  86. Why rents are getting higher and higher? Because buying a flat in increasingly more cases is treated as pure investment – stable and secure piggybank to put your money into or get out of if needed, and in increasingly fewer instances as getting a place to live in. So more and more real estates are extremely expensive, owned by extremely wealthy people, and nobody lives in there. Flats with no inhabitants are easier to sell/buy at any time given. London is probably the best place on the World to observe the trend.
    How to reduce it? By giving cities to possibility to levy a real estate tax with exemption in case if someone has registeredly inhabited it (for each person a certain spatial exemption threshold – ex 50 sq m / 500 sq ft for first inhabitant and half of it for subsequent). For example: we've got 120 sq m flat with two registered inhabitants. Exemption is 50+25 sq m, so real estate tax should be paid for 45 sq m (120-75).

    Such a tax will make owning an empty flat unprofitable. Owners will start to look for inhabitants to cut tax levies and market positions of both sides will turn up side down.

  87. Airbnb works in only those places where cheaper hotels are not available

  88. AIRBNB used to be cheap but now the bloodsuckers renting out there dumps are charging just as much as hotels, it should be shut down just because of the greed of the people involved. Also the obnoxious SJW bullshite.

  89. An increase of 0.018%? It's not even 1%. With a margin of error, that can even mean a decrease.
    Damn, with that kind of logic, Elizabeth Warren is indeed a Cherokee. She is 1/1024, you know, or in percentage she is 0.098% native American, Peruvian but .. whatever guys. Everybody know that 0.098% is significantly bigger than 0.018%, like, more than five times bigger.


    Let's not forget the fact that the researchers are from University of Commiefornia, and they pushed a result that is within margin of error as an evidence of increase. Can we say the research result has a pattern of SJWism? Yes, it is. Yes.It.Is.

  90. Tons of people moving into the cities and the gab between rich and poor is exploding

  91. Fix the goddamn restrictive zoning laws


  92. Who would've thought that economics is a complicated subject and it's never a silver bullet. I have a pretty good idea of the next video why rent/housing prices are going up in certain municipalities. Mainly being rent control like in SF or NYC and more importantly land use restrictions aka zoning. I live in Massachusetts and the trials and tribulations for any given city/town to give the privilege to construct any apartment building or multifamily housing is awful. So bad that it can require a 2/3 vote from the city/town to approve it, or you need 1 or 2 acres of empty land minimum, or it's a "historical landmark," or it will effect the city/towns "historical character." I mean seriously…no respect for property rights. Seriously, there are cities like Dallas and then there are cities like Boston. I love New England, born and raised North Easterner, but damn man, Boston can learn a thing or two from Dallas or Houston when it comes to housing.

  93. Airbnb is just a cog in the whole economics of property rentals and property prices.

  94. Airbnb was a lot better for me while living in Brazil because I couldn’t get a normal flat because everyone wanted a Brazilian bank account and most people dont want to rent to foreigners anyway so I just rented a flat from airbnb for a month and then once there I was lucky to have a great landlady who let me continue staying with her for my full 6 months in Brazil by paying her the rent in cash and she charged me 25 percent less than I initially paid on airbnb

  95. Hey Simon. What about the golden times of Mumbai. It's in India btw

  96. Why do cities hate AirBNB? is definitely a pretty interesting video! I truly did appreciate it so much. Thanks a lot for sharing! Keep it up!

  97. Please reduce volume or cancel music in the back. Informative videos are most enjoyed in quiet.

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