Study after study is showing that short-term vacation rentals negatively impact neighborhoods. That's true even in parts of cities where STVR are not prevalent, as the San Diego affordable housing study on this page shows. STUDIESSAN DIEGO VAC. RENTAL DATAPENN STATE STUDYNYC-AIRBNB STUDYUNITE HERE SAN DIEGO STUDY
New study reveals growing number of commercial landlords
using Airbnb to run "illegal hotels" in major cities
Nearly 30 percent of Airbnb revenue in 12 major U.S. markets comes from hosts operating as “full-time” landlords. Number of hosts renting out multiple properties on Airbnb also rapidly growing; driving an increasingly large share of revenue
WASHINGTON, D.C., January 20, 2016 -- The American Hotel & Lodging Association (AH&LA) released a new study today conducted by researchers at Penn State University’s School of Hospitality Management offering the first, comprehensive national look at the rise of commercial activity on Airbnb, one of the most trafficked short-term rental platforms. The analysis tracks data collected during a 13-month period (September 2014-September 2015) in 12 of the nation’s largest metropolitan statistical areas (MSAs): New York, Chicago, Los Angeles, Philadelphia, Miami, Houston, Dallas, Phoenix, San Antonio, San Diego, San Francisco, and Washington, D.C.
The study: “From Air Mattresses to Unregulated Business: An Analysis of the Other Side of Airbnb” focuses on “hosts” in these top markets who rent multiple units and the length of time they are renting their units. It tells a very different story about who is driving revenue on the site.
Among the key findings in the report:
Nearly 30 percent ($378 million) of Airbnb’s revenue in these markets came from “full-time operators,” with rentals available 360 days a year. Each of these operators averaged more than $140,000 in revenue during the period studied.
The cities with the largest number of full-time operators include New York and Miami on the East Coast and Los Angeles and San Francisco on the West Coast.
Individuals or entities renting out two or more residential properties on Airbnb account for 17 percent of hosts in the twelve cities studied, and this rapidly growing segment of “multi-unit operators” drives nearly 40 percent of the revenue in those markets, which equates to more than half a billion dollars a year.
“The study shows an explosion in activity among multi-unit hosts and the rise of full-time operators in each of the 12 markets we analyzed. Further, operators renting out three or more units represent a disproportionate share of revenue with only 7 percent driving more than $325 million in the period studied,” said Dr. John O’Neill, Professor and Director of the Center for Hospitality Real Estate Strategy at Pennsylvania State University, who directed the research.
“Our industry thrives on competition each and every day, operating on a level and legal playing field. And we believe new entrants to the market like Airbnb and the commercial businesses they facilitate have those same obligations,” said AH&LA President and Chief Executive Officer Katherine Lugar. “Unfortunately, this report shows a troubling trend as a growing number of residential properties are being rented out on a full-time, commercial basis, in what amounts to an illegal hotel, and using Airbnb as a platform for dodging taxes, skirting the law and flouting health and safety standards.
“This is not about ‘home sharing,’ a practice that has existed for decades as a way for individuals to make a little extra cash by renting out the occasional room or home. But this data tells a very different story than the one told by Airbnb, who wants the face of Main Street but the wallet of Wall Street. As a corporation valued at more than $25 billion, they have a responsibility to protect their guests and communities; they should not be enabling the corporate landlords who are clearly using their platform to run illegal hotels.”
The full report is available for download on the AH&LA website at:
Big chunk of Airbnb's revenue comes from year-round rentals, study finds
Nearly a third of the revenue generated by the short-term rental company Airbnb in 12 major markets comes from homes and apartments that are rented out on a full-time basis.
The study, which focused on 12 of the nation's largest metropolitan areas -- including Los Angeles, San Diego and San Francisco -- found that 30% of Airbnb's revenue comes from properties that are offered at least 360 days of the year.
The study, completed by a Pennsylvania State University professor with funding from the hotel trade group, also found that 17% of Airbnb landlords in the 12 big metro areas rent out two or more properties.
Katherine Lugar, chief executive of the American Hotel and Lodging Assn., said the findings emphasize the need for cities and states to adopt legislation that imposes the same restrictions on short-term home rentals as on hotels.
"This report shows a troubling trend as a growing number of residential properties are being rented out on a full-time, commercial basis, in what amounts to an illegal hotel, and using Airbnb as a platform for dodging taxes, skirting the law and flouting health and safety standards," she said.