Now that Airbnb has rattled the hotel industry, is it only a matter of time before it offers customers longer-term rental options?
The influential West Coast consultant John Burns Real Estate Consulting recently told its newsletter subscribers that it “senses a trend developing” where Airbnb—which is on pace to book 80 million nights in 2015—has its expansion eyes set on becoming part of the apartment market.
The consultant recently conducted an apartment feasibility study for a proposed new building whose developer might include some units devoted to Airbnb users. John Burns suggests that other apartment developers could consider setting aside some units “as a kind of Airbnb rental pool to maximize revenue and market flexibility,” especially when apartment market conditions are soft.
“The key will be having a location that can tap into the burgeoning Airbnb user stream,” the consultant writes.
It remains to be seen whether what Burns has spotted turns out to be a trend or an anecdote. But there’s no denying that since 2008, when it was founded, San Francisco-based Airbnb has become a juggernaut, with listings in more than 34,000 cities and 190 countries. Investors value the company at around $24 billion, according to the New York Times.
The company has also proven itself to be a savvy defender against critics who feel threatened by its growing popularity and insist that its business model unfairly skews the affordable housing market or skirts regulations and taxes enforced on other forms of hospitality.
Airbnb spent heavily last year to defeat a law in San Francisco that would have limited its services there. As proof that it wasn’t materially affecting housing affordability by turning homes into short-term rentals, Airbnb recently wheeled out a report that claimed nearly 80% of its listings in Sealtle are rented less than 90 days a year.
Crain’s New York Business reports that Airbnb has been lobbying New York lawmakers to change rules that limit the number of days an owner or renter in New York City can lease or sublease a home or apartment to under 29 days. Airbnb claims it removed more than 2,000 listings in 2014 after New York State’s attorney general, Eric T. Schneiderman, filed an affidavit that alleged that two-thirds of the apartments listed in the city were illegal sublets.
According to data the company recently made public about its network in New York City, as of Nov. 17, 2015 there were slightly under 36,000 listings on its platform, and the median number of nights booked per listing in the previous year was 42.
Its New York City data also show that hosts there earn a median of $5,110 per year from renting their apartments or homes to visitors. Airbnb characterizes these earnings as “an economic lifeline for families.” The company data show that 72% of its hosts in New York say they depend on this income to stay in their homes.
Related Stories
| Apr 9, 2014
Steel decks: 11 tips for their proper use | BD+C
Building Teams have been using steel decks with proven success for 75 years. Building Design+Construction consulted with technical experts from the Steel Deck Institute and the deck manufacturing industry for their advice on how best to use steel decking.
| Apr 2, 2014
8 tips for avoiding thermal bridges in window applications
Aligning thermal breaks and applying air barriers are among the top design and installation tricks recommended by building enclosure experts.
| Mar 27, 2014
16 kitchen and bath design trends for 2014
Work on multifamily housing projects? Here are the top kitchen and bath design trends, according to a survey of more than 420 kitchen and bath designers.
| Mar 26, 2014
Callison launches sustainable design tool with 84 proven strategies
Hybrid ventilation, nighttime cooling, and fuel cell technology are among the dozens of sustainable design techniques profiled by Callison on its new website, Matrix.Callison.com.
| Mar 25, 2014
World's tallest towers: Adrian Smith, Gordon Gill discuss designing Burj Khalifa, Kingdom Tower
The design duo discusses the founding of Adrian Smith + Gordon Gill Architects and the design of the next world's tallest, Kingdom Tower, which will top the Burj Khalifa by as much as a kilometer.
| Mar 24, 2014
Snøhetta unveils plans for serpentine mountain hotel
The winding hotel and apartment building will be built between the mountains and the sea in remote Glåpen, Norway.
| Mar 21, 2014
Forget wood skyscrapers - Check out these stunning bamboo high-rise concepts [slideshow]
The Singapore Bamboo Skyscraper competition invited design teams to explore the possibilities of using bamboo as the dominant material in a high-rise project for the Singapore skyline.
| Mar 20, 2014
Common EIFS failures, and how to prevent them
Poor workmanship, impact damage, building movement, and incompatible or unsound substrate are among the major culprits of EIFS problems.
| Mar 17, 2014
Rem Koolhaas explains China's plans for its 'ghost cities'
China's goal, according to Koolhaas, is to de-incentivize migration into already overcrowded cities.
| Mar 13, 2014
Austria's tallest tower shimmers with striking 'folded façade' [slideshow]
The 58-story DC Tower 1 is the first of two high-rises designed by Dominique Perrault Architecture for Vienna's skyline.