B4 • Friday, July 15, 2022
thegardenisland.com
THE GARDEN ISLAND
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Julie Black, Principal Broker & Owner (808) 652-6174 with daughter Kela Caspillo, Realtor Sales Person (808) 652-6173 kauaidreams.com
Is Airbnb responsible for high home prices? Douglas Ellman reports that there are 7,669 units available in NYC, compared to 10,572 Airbnb rentals. “ New York City has not built Short-term rental app Airbnb enough affordable housing,” shot may have another banner year, but back Airbnb. “Rather than attack many question the ripple effect of regular people who are using their vacation rental services on the homes to help pay the bills and housing market. cover rising food and other costs,” Communities have turned into says the spokesperson, “leadership ghost towns. The housing market The neighbors are not needs to focus on building more has become insurmountable for pleased housing for people.” new buyers. There are more This is not the first time Airbnb We spoke with several real estate listings for Airbnb than long-term investors to learn more about what has had to come to its own rentals in major cities such as New defense. While some Arizona they describe as the “Airbnb York. A simple search of the residents might criticize the Effect.” hashtag #airbnbnightmare will intrusive efforts of Airbnb, they “This works a lot like yield more than just complaints compiled data to suggest they are gentrification,” says Eyal about unreturned deposits and JOHN BAZEMORE / ASSOCIATED PRESS FILE boosting Arizona’s economy. Pasternak, founder of the Liberty missing towels. A report conducted by Rounds House Buying Group. “It’s going to “Airbnb destroys communities,” A new home is for sale in Madison, Ga. Consulting Group showed that be difficult for locals to buy the tweets one user. @MeMeBoomer is Airbnb is having a great year Airbnb’s “It” couple short-term rentals supported more property around them, increasing no stranger to talking politics on than 75,000 jobs in Arizona in 2021. For all their criticism, Airbnb has the wealth disparity,” says Eyal. “The first quarter of 2022 was Twitter, but her feelings for Airbnb They contributed $2.8 billion to the “Amidst the housing market another record quarter for Airbnb,” been a proven opportunity to turn couldn’t be more personal. She labor income, $6.6 billion from crisis, there are many different a side hustle into a full-fledged says co-founder and CEO Brian describes her community as a guest spending, and $500 million in ‘boogeymen’ labeled as the career. Just ask Lauren and Chris, Chesky. Bookings are up 30%. lonely and desolate place to live. state and local tax revenue. problem,” says Cristina Cason, a However, what might surprise you who now run a small empire of Airbnb dominates her rental properties. They represent a real estate investor and agent. “But is the length of stay guests are neighborhood, making it What about the housing there is one jailbird no one talks flexible working model with booking. impossible for new tenants or crisis? about. Airbnb has inflated the financial autonomy that is According to their first-quarter potential homeowners to move in In a study released a few years housing market beyond belief,” report, long-term stays — meaning desirable to many Americans permanently. ago, researchers Kyle Barron, says Cristina. She calls for 28 days or more — are the fastest- today, but their hard work may “No long-term housing options government regulation to tame the Edward Kung, and Davide have had adverse effects across growing category by trip length. for people who work in these Proserpio studied the effects of app. the housing market. towns, so businesses and services Moreover, these long-term stays Airbnb has negatively impacted Airbnb on rentals and home prices. Since buying their first vacation are at an all-time high, a figure also suffer,” she tweeted on June They found that a 1% increase in home in 2017, the couple expected local communities across the 21. @MeMeBoomer’s is not the only double in size from the same Airbnb listings leads to a 0.018% globe. “Our downtown to rent it on the occasional quarter in 2019. story to be shared on the social neighborhood has hollowed out as increase in rents and a 0.026% in weekend, but they never In 2007, two hosts were media platform. envisioned it would transform from investors snap up houses and rent house prices. Airbnb, founded in late 2007, has welcoming guests to their homes. While those margins may be a little extra pocket money to a full- them as STRs… while actual Austin Today, the site boasts 4 million provided convenient vacation small, coupled with the aftertime career. Today they own fifteen residents are unable to find hosts and 6 million active listings. rentals for the past fifteen years. effects of the pandemic and the affordable houses to buy or rent,” rental properties, all listed on According to Airbnb, their hosts However, with outcries that they vitriol expressed by communities, tweeted user @LSajbel on July 5. Airbnb, and have since quit their have earned $150 billion since the are destroying communities, it is more likely than not that day jobs. Their rentals generate app’s inception. causing a widespread housing Airbnb speaks out Airbnb has contributed to a spike Are long-term rentals successful approximately $115,000 a month. shortage, and leading to a spike in in home prices, although the shortMeanwhile, there are currently The couple faces challenges, on Airbnb because traditional home prices, it begs the question: term rental app might not be more Airbnb listings in New York particularly when it comes to rentals are less available to are we finally paying the price for entirely to blame. expansion. Lauren admits it’s much City than apartments for rent. potential tenants? our convenience? Justin McDevitt WEALTH OF GEEKS
Average long-term US mortgage rates bounce back to 5.51% ASSOCIATED PRESS WASHINGTON — Average longterm U.S. mortgage rates were back up this week, just as the latest government data shows inflation has not slowed, meaning the Federal Reserve is almost certain to raise its benchmark borrowing rate later this month. Mortgage buyer Freddie Mac reported Thursday that the 30-year rate rose to 5.51% from 5.30% last week. One year ago the average 30year rate was 2.88%. The average rate on 15-year, fixed-rate mortgages, popular among those refinancing their homes, rose to 4.67% from 4.45% last week. A year ago, the rate was 2.22%. The Federal Reserve raised its benchmark rate by a half-point in May and another three-quarters of a point last month, the biggest single hike since 1994. Fed policymakers have signaled that much higher interest rates could be needed to reign in persistent, four-decade high inflation. Most economists expect the Federal Reserve to jack up its borrowing rate another half-tothree-quarters of a point when it meets later this month. Fed officials acknowledge that their rate hikes could weaken the economy, but suggested that such steps were necessary to slow price increases back to the Fed’s 2% annual target. The Labor Department reported Wednesday that its consumer price index soared 9.1% over the past year, the biggest yearly increase since 1981. On Thursday, Labor released data showing that its producer price index rose by 11.3% in June compared with a year earlier.
more complicated now than when they started five years ago. “The real estate market is brutal,” she says, “and a lot of people want to do what we’ve done.” Their struggles with the housing market could suggest that Airbnb’s “It” couple is facing a problem they helped create.