Every City Should Have Lots of Airbnb Apartments — Except Mine. Here’s Why.

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Every City Should Have Lots of Airbnb Apartments — Except Mine.  Here’s Why.

Scott LiebermanEvery City Should Have Lots of Airbnb Apartments — Except Mine.  Here’s Why.Million Mile Secrets Team

We devote thousands of hours of research to help you get Big Travel with Small Money. You support us by signing-up for credit cards through partner links which earn us a commission. Here’s our full Advertising Policy.

Scott:   I am an Airbnb hypocrite — because I love to travel.

Airbnb makes travel more affordable for tourists but renting more expensive for locals.  Is this really true?

Has the Popularity of Airbnb Driven up Rental Prices in Popular Tourist Cities?

There have been various studies and investigations that say so.  Of course, some of these may or may not have been corrupted with hotel sponsorship money.

But I’ll go with my intuition / common sense on this one.  Have rents in (insert popular tourist city here) gone up because of people snapping up apartments to list on Airbnb for more money than they could get from a tenant?  I’ll say YES… in the popular neighborhoods of those cities.

It’s supply and demand.  I’m NOT talking about the person who lives alone in a 2-bedroom apartment and rents out their spare bedroom on occasion.  This is about the person / business who buys or rents an apartment (or many!) then makes it into a mini-hotel.

Airbnb has been a big part of how I’m able to stay so long overseas.  I like to rent a regular place in a convenient area, but not on the main tourist strip so I save money and get a more authentic experience.

Then I’ll use points to splurge for a fancy weekend hotel stay.

I Rented an Airbnb in Cancun (Away From the Main Tourist Area) for 5 Weeks, Then Splurged With Points to Stay at This All-Inclusive Resort for a Couple of Nights

I can’t imagine all the Airbnb apartments for rent do NOT drive up rents for locals.  It seems to me that it’s a great business for the locals who participate and not so great for those who don’t.

For instance, I stayed in Krakow, Poland, where my host had apparently created a network of apartments all over town — and with multiple units in our building.

You can’t tell me that kind of thing doesn’t cut some of the supply and thus raise prices… unless there’s just a glut of affordable housing in the area.

One argument I do NOT buy is that hotels lose a lot of business to Airbnb.  Because they’re totally different experiences.  And because — take my situation for example — I want to stay 6 weeks in a city.  I’m never going to buy 6 weeks at a hotel.

But I have purchased 5 weeks at an Airbnb and added on a week at a hotel using money and points.  So the hotel got business it wasn’t going to get if I didn’t have a way to stay longer in that city.  And local businesses got more of my tourist spending and so on.

So I like all that for MY neighborhood in MY city, but naturally I don’t want that to increase rents.  Unless of course I decide to become a landlord…

Get Free Airbnb Stays With These 2 Credit Card Bonuses

Capital One® Venture® Rewards Credit Card – The bonus offer is worth $500 off travel expenses like Airbnb

Barclaycard Arrival® Plus World Elite Mastercard® – The bonus offer is worth $600 off travel expenses like Airbnb

If you liked this post, why don’t you join the 25,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!

Capital One® Venture® Rewards Credit Card

Capital One® Venture® Rewards Credit Card

  • Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel
  • Earn 2X miles on every purchase, every day. Plus earn 10X miles on thousands of hotels; learn more at hotels.com/venture
  • Named ‘The Best Travel Card' by CNBC, 2018
  • Receive up to $100 application fee credit for Global Entry or TSA Pre✓®
  • Fly any airline, stay at any hotel, anytime; no blackout dates
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • No foreign transaction fees
  • $0 intro annual fee for the first year; $95 after that

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry that something went wrong, repeat again!

5comments

by Newest
by Best by Newest by Oldest

It’s a fairly significant problem where I live (Savannah, GA). Airbnbs properties within the Historic District have also caused many of the areas to lose their charming neighborhood feel. Still…I love a good Airbnb rental option, so I’m all for them — in limited numbers. 🙂

Be careful because Air B&B codes as real estate instead of travel. You have to talk to customer service to have them review the purchase which takes 30 days.

Hi Lynda, that’s really odd! What card did you use to make the purchase?

I’ve got the Chase Sapphire Reserve and haven’t had any issues with AirBNB coding as travel.

I’m thinking it could maybe just be one card issuer?

*attract

Airbnb rentals make it affordable for local residents because it’s bringing in property tax revenue that an empty property would not be bringing. When landlords buy properties, upgrade and rehab them, it increases the value of that property and thus, increases the property taxes they pay, which goes back into the community. If it weren’t Airbnb, many of these properties world sit vacant and not only an eyesore, but could start the wrong crowd of people.