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by MartianSquirrel 2023 days ago
1. They disrupted the hospitality industry, which used to be much more powerful than it is today, as it now weighs less in tourism numbers.

I don't necessarily think this is bad, disruption is often a sign of optimization.

2. Then there are markets where airbnbs have caused apartment buying and rental prices to go up much faster than what they should have, bringing millennials further away from home ownership. (not going to go into people getting evicted for landlords to open airbnbs, but deserves a quick mention)

This one is more tricky, as it is not strictly bad, but definitely not good. It tends to be good for some sectors of the economy (i.e. tourism, restauration, culture, etc.) As a whole(and in theory) it should drag -with some delays- the construction industry into building more housing units at a faster pace. Now, considering the economy as a whole was very good pre-pandemic and we were near full employment, construction companies likely had trouble finding more qualified workers to fulfill the demand. Government incentives were also either not present or not strong enough for new 'affordable' housing to be build in cities.

I know I went up fairly quickly over these issues, there is so much more going on, I strongly suggest reading/researching more about the various issues as there are definitely valuable startup ideas hiding in there.

Overall, I have no doubts the balance will be reached in the following decades: (i)Regulations to limit the numbers of airbnbs, coupled with permits and taxes. (ii)Strong government incentives to build more housing as I doubt people leave the cities for good following the pandemic, let alone remote working remaining the standard. (iii)Airbnb modifying it's business model. i.e. keeping the actual airbnbs, but potentially acquiring hotel chains amongst other things.

1 comments

"it should drag -with some delays- the construction industry into building more housing units at a faster pace".

But how? How can you build more apartments in Lisbon or Amsterdam, where every inch is already used? Houses can be build in more distant areas but this forces people to commute longer making their live much worst.

The demand gets higher, therefore a healthy market will move towards a supply/demand equilibrium.

There are creative ways to go around most problems, given the incentives are strong enough. i.e. we all live underground /s

On the other side, too much regulation can prove to be a strong disincentive. In this case I expect architecture or density requirements, amongst other things, in cities like Amsterdam to cool down the market, maybe a bit too much.