See photos and updates from listings directly in your feed
Share your favorite listings with friends and family
Save your search and get new listings directly in your mailbox before everybody else
Airbnb, the online platform enabling homeowners to rent out their homes on a short-term basis, has undeniably transformed how we travel. With millions of listings around the globe, tourists now have access to a vast array of housing options that can offer a more personal and localized experience. Yet, as with many revolutionary services, there have been unforeseen consequences. One of the most discussed is the role Airbnb and similar platforms play in major cities’ housing markets. In Boston, a city renowned for its rich history and collegiate presence, the surge of short-term rentals (STRs) has raised concerns over its impact on housing availability and affordability.
Limited inventory has plagued the US housing market since the Great Recession. However, the situation took a turn for the worse during the COVID-19 pandemic. As supply chain disruptions, labor shortages, and the skyrocketing costs of raw materials put the brakes on residential development, potential buyers have found themselves in a more competitive and pricey market. High demand and limited supply are core factors driving home prices upwards. Still, another factor has been gradually infiltrating this dynamic: converting single-family homes into rental properties, especially those listed on platforms like Airbnb.
While major markets like Philadelphia, Miami, and San Diego have reported increases in STRs, leading to lower housing inventory for potential buyers, Boston has not remained untouched. However, how much STRs contribute to rising home prices remains controversial. Research from data firm AirDNA posits that short-term rentals were responsible for only 1% to 4% of the increase in housing prices in recent years. If this data is accurate, placing blame on Airbnb would be misguided.
Yet, there is an anticipatory buzz in the market. Reventure Consulting CEO Nick Gerli sparked interest when he hinted at a potential “wave of forced selling” from Airbnb owners by the end of 2023. Such a development could flood the market with homes, potentially driving lower prices. However, this speculation is met with skepticism. Zillow senior economist Jeff Tucker argues that significant change in housing stock can’t happen in a mere year. As he highlighted, the current housing deficit has been about a decade in the making; hence, rectifying it will require substantial time.
Furthermore, while STRs might not be the primary drivers of the housing crisis, they could amplify the problem. As Alexander Hermann from Harvard’s Joint Center for Housing Studies noted, in most places, short-term rentals might not directly cause supply challenges but might exacerbate existing ones. Even if STRs aren’t the root problem, they’re a branch growing in a direction that may not benefit all.
The sentiments in Boston mirror those of real estate professionals in other booming cities. Austin Stowell, associate broker with KEEP Real Estate Group in Austin, Texas, points out that while STRs play a role, the primary issue is the lack of preparedness for growth, leading to housing shortages and surging demand.
To conclude, the debate surrounding Airbnb’s influence on housing markets is far from black and white. While they may not be the primary culprits behind Boston’s housing woes, their presence and rapid growth in an already strained market undoubtedly play a part. As Bostonians and potential homeowners navigate this turbulent housing market, a multifaceted approach that addresses various contributors to the crisis is paramount.
