Report: Airbnb is choking the life out of your favorite neighborhoods ¯_(ツ)_/¯ - Technical.ly Brooklyn

Civic

Jun. 30, 2016 11:26 am

Report: Airbnb is choking the life out of your favorite neighborhoods ¯\_(ツ)_/¯

Can a software platform remake a neighborhood? A report from NYC housing advocates says Airbnb is fueling gentrification.
Even Bed-Stuy/Crown Heights is feeling the Airbnb squeeze, a new report says.

Even Bed-Stuy/Crown Heights is feeling the Airbnb squeeze, a new report says.

(Screenshot)

The median rental price for a unit in Bed-Stuy/Crown Heights is $2,370 a month. For people running a serious Airbnb hustle, the average monthly revenue from a listing in these neighborhoods is $2,530. And that’s if it’s only booked at an average rate for these renters, which is 66 percent of the time.

And therein lies one of the problems listed in a voluminous new report by rental advocacy groups Housing Conservation Coordinators and MFY Legal Services. Another, simpler, problem is that the money people make from renting out their apartments even occasionally is passed on to the landlord in the form of higher rent prices. If rent is $2,000 a month but you get $500 from renting it out a few days a month, you can probably afford if the landlord increases the rent to $2,200.

And Airbnb listings aren’t affecting each neighborhood the same. According to the report, Short Changing New York City: The impact of Airbnb on New York City’s housing market, “53 percent of Airbnb listings are located in one of the following five ‘macro-neighborhoods’: East Village/Lower East Side, Chelsea/Hell’s Kitchen, West Village/Greenwich Village/SoHo, Williamsburg/Greenpoint/Bushwick, Bedford Stuyvesent/Crown Heights.” Data for the report comes from the Airdna.

The report also noted that the rental vacancy rate in New York is between 3.4 percent and 3.6 percent. Anything lower than a 5 percent vacancy rate distorts a housing market, it says.

From a CartoDB map of New York Airbnb data. Look at Williamsburg. (Screenshot)

From a CartoDB map of New York Airbnb data. Look at Williamsburg. (Screenshot)

A March report from mapping company CartoDB, Understanding Airbnb’s impact through Census data, found that profitability was so high that in parts of Williamsburg it’s possible to pay a median rent with just five nights a month renting it out on Airbnb.

Advertisement

The Housing Conservation Coordinators report had a message beyond just that Airbnb is making these neighborhoods more expensive. It said that making neighborhoods more expensive pushes out the people that had been living in them, and changes the very chemistry of the place:

Neighborhoods with the greatest number of Airbnb listings have experienced significant changes in demographic characteristics that are linked to gentrification, including the proportion of white residents, the proportion of residents over 25 years old with a Bachelor’s degree, and median household income. … If this trend continues to occur, sustained rises in rental prices and neighborhood displacement are likely, as well.

Companies: Airbnb
-30-
BECOME A CONTRIBUTOR TO THE JOURNALISM FUND TO COMMENT
Already a contributor? Sign in here
Connect with companies from the Technical.ly community
New call-to-action

Advertisement

Brooklyn’s new thing is taking your kids out of school and using this startup instead

Planning org: If the rent is too high, repeal housing caps

Single-word Brooklyn startups raise real money: $3.5M for Feather, $3.6M for Honcker

SPONSORED

Brooklyn

You can win up to $360,000 at the WeWork Creator Awards

Philadelphia

Vistar Media

Sr. Software Engineer

Apply Now

Philadelphia

Vistar Media

Front End Engineer

Apply Now

Philadelphia, PA - Center City

Odessa

Business Architect

Apply Now

A shout of protest from the other side of the gig economy

New report says 3D manufacturing will lead a New York miniboom

GovLab’s 8 takeaways for handling data responsibly

SPONSORED

Brooklyn

Explore how diverse teams build dynamic products with Dev Bootcamp

Offsite

Philadelphia Home

Social Media Catalyst

Apply Now

Baltimore, Brooklyn, D.C., Delaware, Philadelphia

Vistar Media

Software Engineer

Apply Now

Sign-up for daily news updates from Technical.ly Brooklyn

Do NOT follow this link or you will be banned from the site!