Short-term rentals such as Airbnb may be to blame for rising housing costs. That’s the concern of a new cost-benefit analysis on the impact of short-term rentals by the Economic Policy Institute.
The institute looked at housings costs, renter behavior and taxes, and then analyzed the impact of short-term rentals on adjacent industries. It found long-term rental prices increased when housing stock moved into short-term rentals.
In particular, the study found average rent in New York went up about $400 a year after the introduction of Airbnb to the market. While short-term rentals have benefits, the study concluded that services such as Airbnb are getting an advantage and should have to “play by the same rules” as others in the lodging industry.
Some cities have already begun to crack down on short-term rentals. One big concern for cities has to do with tax money. Many cities depend on tourism dollars, and traditional hotel rooms generate steep lodging taxes for the local economies.