AirBnB Causing High Rents?

More and more articles are coming out stating that AirBnB is contributing to the high rents. It's hard to say if this is true across the board, but there seems to be some merit it it. What it comes down to is that Landlords are laughing and renters are getting salt poured on wounds. Activists in LA and NY are taking measures to fight AirBnB.

According to the NY Times:

In Manhattan’s Hell’s Kitchen and Chelsea neighborhoods and the Midtown Business District, which accounted for about 11 percent of all Airbnb listings in New York City in 2016, average monthly rents increased by $398 between 2009 and 2016, of which $86, or 21.6 percent, was a result of Airbnb’s presence, the report said. In Greenpoint and Williamsburg in Brooklyn, the study said, rents went up 18.6 percent in those years because of Airbnb listings.

Airbnb makes it easy to rent apartments to tourists, taking units off the market for full-time residents, the report said.

“For years, New Yorkers have felt the burden of rents that go nowhere but up, and Airbnb is one reason why,” the city comptroller, Scott M. Stringer, said in an interview. “It’s just simply supply and demand. Fewer apartments to rent means higher prices, and that’s the Airbnb effect.”

According to the Wall Street Journal:

Researchers looked at rents and home prices in the 100 largest metro areas in the U.S. between 2012 and 2016. They found that a 10% increase in Airbnb listings leads to a 0.39% increase in rents and a 0.64% increase in house prices.

From the LA Times:

The rental crisis is real: Far too few units are available, and residential rents are far too high. Airbnb does contribute to the problem. Landlords remove rental units from the long-term market because they can make more money from short-term Airbnb rentals. Reduced supply, coupled with constant demand, means higher prices.

What really matters, however, is not whether Airbnb drives up rents — it's by how much. And the truth is that we don't know the magnitude of the problem, because it's been insufficiently studied.

Airbnb critics often cite a 2016 article in the Harvard Law and Policy Review that claims the service has caused rent increases approaching 3% in some Los Angeles neighborhoods. 

DTLA is in the Top 5 Most Expensive Places to Rent in Los Angeles County

According to Zumper, DTLA has among the highest median rent prices for 1 bedrooms, even topping Beverly Hills and Bel Air. From highest average prices:

1. Santa Monica -$3160
2. Ocean Park - $2700
3. Venice - $2560
4. Marina de Rey - $2520
5. DTLA - $2410

Those looking into investment properties should be looking into DTLA. And did I mention no rent control as well?

Number of Renters Continue to Rise

According to a new report by New York University’s Furman Center, there has been an increase in renters around the country. "For many, slow income growth and a lack of savings are the reason for renting over buying even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country. 'As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,' Ingrid Gould Ellen, the Furman Center’s faculty director."

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpufv

It’s a renter’s world out there.
Major U.S. cities are seeing an uptick in the amount of renters compared to homeowners, according to a new report by New York University’s Furman Center and Capital One.
Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
Rents grew faster than inflation in all of the 11 largest metro areas in the country, except for Dallas and Houston where rates remained flat, according to the report. Washington D.C. saw the biggest rent increase, with a 21 percent jump in median rent.
Philadelphia had the lowest percentage of renters in 2013, with 44 percent. Across the country, 36 percent of households are being rented, while 64 percent were owner-occupied. Developers and economists expect that the trend of renting over owning will continue. [WSJ] — Claire Moses 
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf

Even lower-density cities are seeing an uptick in renters, according to the report cited by the Wall Street Journal.
New York City no longer has the largest share of renters among the country’s other big cities, the report found. Miami — where 65 percent of the population are renters — has surpassed New York. The percentage of renters in New York has been dropping, with 71 percent in 1970 and 64 percent in 2013.
For many, slow income growth and a lack of savings are the reasons for renting over buying, according to the newspaper, even though mortgage rates are still at a historic low. As a result, the demand for rental apartments is up in many cities, which in turn is pushing up housing costs across the country.
“As the number of renters grow, if the supply of rental housing does not keep up, as it has not in most of these cities, then vacancy rates will fall, rents will rise, and more renters will struggle with the costs of housing,” Ingrid Gould Ellen, the Furman Center’s faculty director, told the newspaper.
- See more at: http://therealdeal.com/blog/2015/02/09/majority-of-population-in-big-u-s-cities-rents-report/#sthash.0DBFKEWC.dpuf