The battle over Airbnb has hit a breaking point
. Jamie Lane, the vice president of research for AirDNA, said the supply shocks during the pandemic were unlike anything he'd seen in more than a decade of covering the lodging industry. Supply and demand were thrown"totally out of whack," Lane told Insider. In February, occupancy rates remained"well above pre-pandemic figures," according to AirDNA, but supply growth continued to outpace demand.
Rental hosts who've managed to avoid the bust may have their city government to thank, Nick Del Pego, the CEO of Deckard Technologies, told Insider. Del Pego, whose firm works with local governments around the country to keep tabs on short-term rentals, suggested that hosts in cities that have limited the number of rental properties have seen less of a drop-off in revenue in recent months.
The local government in La Quinta, a resort city near Palm Springs in Southern California, stopped issuing new permits for short-term rentals in all but a few designated areas of the city in August 2020. And new rules that took effect in 2021 mandated that when a short-term-rental home trades hands, its permit expires.
Big Bear Lake, another popular vacation spot in Southern California, represents the flip side of La Quinta. The city has a permitting process for STRs but doesn't limit the number of rentals allowed to operate there.
Engle said that despite the wild fluctuations of the past few years, he's skeptical of the idea that more regulation, like a cap on the number of rentals, would help owners in the long term. Instead, he's betting the market will"self-correct." If an investor isn't making the money they'd hoped for, they may just end up selling or renting out the home to a long-term tenant, Engle said.
"If you're investing into a market and there's no regulation, you just don't know the rules of the road," Lane said."You don't know when regulations are going to be put in place and what those regulations are going to be." But Lane, like Engle, was averse to the idea of cities capping the number of short-term-rentals, saying it creates an"almost unfair advantage" for incumbent hosts and curbs competition.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Americans are among the 6 missing after Montreal building fire that included AirbnbMontreal’s mayor vows to tighten regulation of Airbnb as a search continues for six people missing after a fire swept through a building that included Airbnb units in a historic city section where they are banned.
Consulte Mais informação »
Americans Among 6 Missing After Canadian Building Fire That Included Ilegal Airbnb RentalsMontreal’s mayor vowed to tighten regulation of Airbnb as a search continued for six people — including at least one from the U.S. — missing after a fire swept through a building that included Airbnb units in a historic city section where they are banned
Consulte Mais informação »
South Korea rethinking 69-hour work week after younger workers protestSouth Korea tried to push an almost 70-hour work week, but was forced to rethink after millennials and Gen Z protested
Consulte Mais informação »
Nearly half a million dollars paid to 'insider' whistleblower in Ontario caseA whistleblower who tipped the OSC about wrongdoing at an organization where they worked has been paid a nearly $500,000 reward. Read more
Consulte Mais informação »
Schumer vows to fight latest GOP plan to block student-debt reliefChuck Schumer vows to fight the latest GOP attempt to block student-loan forgiveness in Congress 'with everything we have'
Consulte Mais informação »
Beauty trends to watch, according to an influencer who scouts for VCsInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Consulte Mais informação »