Should Airbnb be Restricted?

WHY THIS QUESTION MATTERS:
In 2008, Airbnb co-founders set up three air mattresses in their apartment to make a little extra cash. A decade later, the digital home sharing platform is valued at $31 billion and offers more than 7 million accommodations, where homeowners across 220countries and regions rent their homes for short-term stays.

As the company continues to grow, many local policymakers are beginning to grapple with the benefits and pitfalls of a large Airbnb presence in their communities. In the city’s most expensive local referendum to date, New Jersey residents voted to impose greater restrictions on short term rentals, aimed at curbing Airbnb’s presence in Jersey City.

THE RISE IN SHORT-TERM RENTALS:
On any given night, there are an average of 2 million people staying in an Airbnb. While traditional Bed & Breakfast lodging has existed for decades, the incredible growth of the Airbnb platform is often attributed to its superior technology. Airbnb’s website and mobile app directly and seamlessly connects hosts and guests. Hosts are property owners who rent part or all of their home to guests, who are searching for short-term accommodations.

Airbnb and other platforms that facilitate home-sharing have developed into a major players in the tourism industry. Airbnb now has more rooms available than major hotel chains like Marriott and Hilton. The growth of Airbnb and similar platforms comes with benefits and pitfalls. Benefits include giving tourists opportunities for “off-the-beaten-track” experiences and allowing hosts to earn extra income. Pitfalls include negative impacts to existing residents who may be effected by increased tourism in their neighborhoods and increased cost of living.

Many cities are now considering a plethora of options to address these concerns.