What We Talk About When We Talk About Airbnb

Paavo Monkkonen

Why are STRs a problem?

Media survey for 200 cities in the United States

70 cities had STR complaints/controversies

In 39 cities, tax collection main concern

in 21 cities, public nuisance

in 10 cities, housing market impacts

Supply & demand shifts in housing market: Graph not to scale!

QuantityQ1

Q2

P2

P 1

S 2

D2D

1

S1

Price

A decrease in supply

An increase in demand

With more elastic supply

QuantityQ2

Q1

P2

P 1

S2

D2D

1

S1

Price

A decrease in supply

An increase in demand

Numbers are relatively small

Restricting density where people want to live pushes development elsewhere

Flo

or

Are

a R

ati

o

Distance to desirable neighborhoods