Get the Facts on the Airbnb and Housing Market Conflict
The Airbnb housing market allows homeowners to rent out their apartments without the regulations of a hotel. People who support Airbnb say that the business creates tourism and supports our communities. However, research below reveals that Airbnb may cause more harm than good when it comes to affordable housing.
Airbnb housing market conflict in your community
In 2016 there were 1,300 active hosts in Rhode Island. These residents made $12 million dollars in additional income. This may seem small when compared with the fact that in New York City, the top 100 Airbnb hosts alone bring in $54 million dollars per year. Nonetheless, Airbnb’s presence in Rhode Island is major. As Rhode Island grows, the supposed sharing economy could drive up rental prices. Landlords and owners find that they can rent out their units to tourists at a price higher than the market. The shift then causes the rental prices in neighborhoods to rise to meet the demand. This forces families who are struggling to struggle more.
Airbnb finds illegal loopholes
Formal laws should manage Airbnb. However, most cities fail to keep track of how the company hurts our communities. In Washington, D.C. Airbnb housing market relations has taken more than 5,000 units off the market. 40% of those units operate as full-time, unregulated commercial enterprises. As cities, we must encourage the government to create zoning laws and a licensing process that holds Airbnb hosts accountable.
The money stays at the top:
The apparent benefit of house sharing does not go where it is needed most. In Rhode Island, low-income neighborhoods are unequally communities of color. Within these areas, Airbnb has racially-linked effects on affordable housing. An analysis performed by Inside Airbnb of New York City shows that Airbnb directly adds to racial inequality. When people rent in the 72 majority black neighborhoods (on average 86% of the population), Airbnb hosts are five times as likely to be white. In these neighborhoods, white hosts bring in $159.7 million dollars per year. On the other hand, Black hosts only make $48.3 million dollars per year. This balance creates an “economic disparity” of 530%. As a result, the families who largely need affordable housing see none of the potential benefits.
What we can do to help:
As our fellow citizens suffer the need for affordable housing is more crucial than ever. Rhode Island requires contractors that understand how to build the best affordable homes for the best value to ensure that our families can thrive. Heroica Construction is a self-performing general contractor with the expertise and commitment to our communities to help build these affordable homes. To learn more about the affordable housing crisis in Rhode Island check out our eBook on the 7 must-know facts on affordable housing in Rhode Island. You can contact Heroica Construction for your next affordable housing build, or any questions, here.