About two years ago, the world become familiarized with the empire that is now known as AirBnb. Though vacation rental sites existed prior to AirBnb, nothing prepared us all for the explosion of the industry brought on by the website. The app and website have brought ease to many of its users but what most people aren’t aware of is the fact that it has had a major impact on the real estate industry.
Since the development of AirBnb, prices of real estate properties have skyrocketed in major cities. Now that property owners have the site at their dispense, it has become harder to purchase real estate that has the possibility to have renters. Those who want to invest in rental properties can expect to see much larger price tags in some major cities around the world. Places such as NYC, Los Angeles, and Seattle have never seen buying prices so high and the will only continue to go up as AirBnb thrives. Property sellers have taken advantage of the demand for rentable properties in big cities and thus know that they can get away with over-pricing.
Many people have speculated that AirBnb has an effect on the value of a property over time. The debates over this topic have been going on for years but now are even more prominent thanks to the popularity of AirBnb. It mostly comes down to whether or not the property is being used for residential or commercial purposes. With the 30-day rule in effect, many property owners for AirBnb rent their places for much shorter time periods. As potential property owners look for real estate that will accommodate a room or space for rent, we come back full circle to the pricing issue. Taxes also come into effect when rental properties are being used. In Portland, short-term rentals were made legal but with the impending loom of taxing on the property.
AirBnb has become a staple for those who travel often and don’t want the high prices of a hotel to slow down their trip. While many people consider it a money maker for property owners, there are so many ways that the website’s popularity has changed the real estate industry. If you are living in a big city and are considering purchasing a property, check into the prices to see if rental will be an option to help you outweigh the high price.