[sanp]

Isn’t the underlying assumption here that supply is essentially infinite (or at least comparable to demand)? I think is the underlying assumption with any such statement. If the assumption doesn’t hold true then I am not sure the statement holds true (perhaps only till there is some supply).

[aurareturn]

No, that's not the assumption. The assumption is that higher prices will draw out more supplies. This is how a free market works.

[sanp]

Well that assumes that there are more suppliers available (within the time period under consideration). Over what time period do we assume that more suppliers will be drawn out? An hour? A day? A month?

[aurareturn]

Given that hosts routinely take their units off market for various reasons, people who have been on the edge of renting out via Airbnb, etc. I'd say the supply increase can be quite substantial. I don't have the data. Only Airbnb does.