2BR

Airbnb teams up with landlords and renters to juice the supply of Airbnb-able apartments

Snacks / Thursday, December 01, 2022
Supply is key (Jens Kalaene/Getty Images)
Supply is key (Jens Kalaene/Getty Images)

Cleaning fee not included… Airbnb has teamed up with building owners across the US to boost the number of rentable rooms on its platform. Airbnb did the legwork in 25 markets and found property owners who’ll allow their tenants to list on Airbnb, sublease-style.

  • Less tiptoe, more dough… Renters afraid of getting caught violating lease agreements won't need to secretly Airbnb their places to make extra $$. No more need to tell your neighbors “those are just my French cousins” [laughs nervously].
  • Testing, testing: To start, the program includes 175 buildings. Airbnb says participating renters have earned $100/night, on average, by hosting their apartments. But building owners can take up to 25% of the rental host's booking.

There's no place like home… if you can afford one. Homeownership has become even more inaccessible, especially after mortgage rates soared. Last year, over a third of US households were renters. But renting is no bargain, either: while rent prices have been cooling this year, they’re still up 7.5% from last year. The prospect of earning extra income through Airbnb rentals could be welcomed by tenants — and help ease the financial anxiety of committing to one place for a year (especially when the economy’s so up in the air).

Demand can follow supply… and Airbnb has an apartment-supply problem. As of October, apartments accounted for only 14% of Airbnb's listings — down 5% from 2019. According to Airbnb, that’s partly because of landlords' opposition to short-term rentals (think: anti-Airbnb rules). Now Airbnb’s looking to get landlords on board. The hope: more Airbnb-friendly apartments = more listings = more bookings. But there's a catch: research shows that the presence of short-term rentals in a neighborhood contributes to rising rents.

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.