Spain has fined Airbnb 75 million dollars for advertising unlicensed tourist rentals, as part of efforts to address housing affordability issues and regulate short-term rental platforms. The government is cracking down on unlicensed listings, which are believed to contribute to rising housing costs, especially in city centers. Airbnb plans to challenge the fine and is working to comply with new registration requirements.
Tesla is launching short-term car rentals in California to counteract declining US EV sales after the end of federal tax credits, offering competitive perks and direct rental options to boost demand.
Airbnb's super PAC is spending $1 million on digital ads attacking three New York City mayoral candidates who oppose short-term rentals, as part of a broader effort to influence the city's housing policies and support front-runner Andrew Cuomo, amid ongoing conflicts with the hotel union and city regulations.
Barcelona plans to ban all short-term holiday apartment rentals by 2028 to address soaring housing costs and make the city more livable for residents. The move, announced by Mayor Jaume Collboni, aims to tackle the city's largest problem of housing affordability, which has been exacerbated by a 68% rise in rents over the past decade. The decision has received mixed reactions, with support from Spain's housing minister but criticism from the local tourist apartments association.
Americans traveling to areas near the path of totality for Monday's solar eclipse have caused short-term rental occupancy rates to surge to about 88%, with over 110,000 listings active along the eclipse's path. Big cities and small towns alike have seen a boom in bookings, with some cities experiencing occupancy rates exceeding 90%. AirDNA's report showed a demand surge of 207.4% from a year ago within the path of totality, indicating the high value that guests place on the eclipse experience and the potential for short-term rental owners to capitalize on future events through dynamic pricing strategies.
Airbnb will ban hosts from using indoor security cameras starting April 30, requiring disclosure of outdoor monitoring tech. The move comes after reports of hidden cameras in rentals and concerns over privacy. The company will also require hosts to disclose noise monitors and outdoor cameras, and prohibit monitoring of indoor spaces with outdoor cameras. Violators may face penalties, but challenges remain in addressing the widespread issue of surveillance in short-term rentals.
Hawaii Governor Josh Green is considering a ban on short-term rentals in Maui if owners of 3,000 units do not convert them into long-term housing for wildfire victims. The current emergency proclamation expires on January 4, and Green is prepared to take necessary action to get families out of hotels and into permanent housing. The Federal Emergency Management Agency has sent letters to 13,000 owners of short-term rental units, offering financial incentives for conversion. Some owners have expressed reluctance to rent to local people, which has angered the governor.
Airbnb has agreed to pay €576m ($620m) to settle a tax dispute with Italian authorities. The amount represents income taxes owed by landlords who rented out rooms or properties on the platform. Italy requires landlords to pay a 21% tax on their earnings. Airbnb will not seek to recover the unpaid taxes from hosts. This settlement comes after an Italian judge ordered the seizure of €779.5m from Airbnb's European headquarters in Ireland for alleged tax evasion. Italy is an important market for Airbnb, and the government has been cracking down on tax evasion by short-term rental owners.
Canada's Fall Economic Statement includes commitments such as investing in new loan funding for apartment construction, supporting affordable housing initiatives, removing barriers to labor mobility, denying income tax deductions for short-term rental expenses in non-compliant areas, supporting municipal enforcement of short-term rental restrictions, introducing a new mortgage charter, investigating international mobile roaming charges, ensuring airlines seat children with accompanying adults, exploring changes to pension fund rules, and buying up to C$30 billion of Canada Mortgage Bonds.
Wall Street firms, including private-equity giant TPG, are increasingly entering the short-term rental market, buying up properties to rent on Airbnb. While short-term rentals can be more lucrative than annual leases, the corporatization of hosts has changed the guest experience. Large companies can offer cheaper prices by outsourcing property management, but guests are more likely to leave lower scores for companies than for individual hosts. However, relying on Airbnb can be risky for both individual hosts and big-money investors, as there is no guaranteed number of bookings and high property prices make recouping investments challenging. TPG has already paused buying additional homes due to changing market dynamics.
Airbnb CEO Brian Chesky denies that the platform creates housing shortages in cities like New York but acknowledges the possibility of unintended consequences resulting from the company's popularity. Airbnb is adjusting to new regulations in New York City that effectively ban most stays under 30 days. Chesky points out that while New York's loss may benefit neighboring towns, people still want to visit the city and may choose to travel to other cities instead. Chesky also announced new features for Airbnb customers and hosts, including "Guest Favorites" and an AI-powered photo tour.
A new study published in Real Estate Economics has found that banning short-term rentals, such as those offered by Airbnb, can lead to a decrease in long-term rents. The study examined the impact of Irvine, California's ban on short-term rentals in 2018 and found that within two years, long-term rents decreased by 3% on average. The researchers estimated that this reduction in rents amounted to a decrease of $80.7 million in annual total rental spending. The findings support previous research that has shown how short-term rentals can drive up rents and home prices, exacerbating the affordable housing crisis. While banning Airbnb alone may not solve the housing shortage, it can contribute to making housing more affordable by increasing the supply of long-term rentals and reducing competition for housing.
The historic city of Florence in Italy has banned platforms like Airbnb from its city center in an effort to address the housing crisis and protect the local population. The number of apartments listed on Airbnb has nearly tripled since 2016, causing a 42% spike in rental prices. The city government plans to incentivize property owners to convert short-term rentals into long-term ones, offering tax incentives and canceling property taxes for up to three years. The Italian government's plan to cap rental days at 120 per year is deemed insufficient by the mayor, who argues for more drastic measures. Cities like Florence and Venice have seen a decline in available housing, leading to protests and threats to their UNESCO protections.
Florence has banned new short-term residential rentals on platforms like Airbnb in its historic center, aiming to free up homes for local residents. The city also offers tax breaks to landlords of existing short-term rentals if they switch to ordinary leases. The mayor of Florence, Dario Nardella, stated that the decision was made due to disappointing government regulations and the significant increase in rental prices. Italy, like other European countries, is facing a housing crisis fueled by low salaries, property shortages, short-term rentals, and high inflation. The central government is working on a bill to regulate short-term rentals, including a minimum stay requirement and a national identification code for each property.
Starting September 5, New York City will enforce a 2022 law that restricts short-term rentals, impacting an estimated 40,000 listings. Hosts will need to comply with new rules, including staying on-site with guests and a ban on entire-unit rentals. Failure to comply could result in fines of up to $5,000 per stay. The crackdown aims to preserve affordable housing and address concerns about the tight housing market. While some hosts fear for their future, others see the new regulations as an opportunity.
