If you do rent it out, then that’s one less airbnb
You’re missing the point. That’s literally the lowest possible price you would ever get with an airbnb. As long as tourists are willing to oay slightly more than rent, it’ll be more profitable to not rent.
Supply and demand doesn’t magically change prices to keep it profitable for an infinite supply, it does by actually changing the supply.
You’re so close…
A) YES! There isn’t an infinite supply
This is part of what will keep airbnb prices above rent.
B) When the supply changes, prices adjust until demand meets supply. That’s the entire basis of a free market. So, as the airbnb supply expands, sure price might lower but as it does, demand rises. It’s very hard to envision a scenario wherein supply rises so much that all the tourists are taken care of at such low prices that local rents are competitive.
But you seem to be ignoring the fact that running an airbnb costs much more for the owner than renting. And that if demand is low, the house will sit empty most of the time, even if it makes more money/time when you do have an airbnb guest.
idk man, I do think we could get airbnbs cheap enough, but I don’t feel like continuing this conversation more.
But you seem to be ignoring the fact that running an airbnb costs much more for the owner than renting.
What are you basing this on? Airbnb charges cleaning fees. Any structural maintenance has to be paid for regardless of whether the home is a long or short term rental. And airbnb has insurance for serious damage.
If airbnb were much more expensive than long term rentals, it wouldn’t exist.
I’m pretty done too, you’re trying to claim airbnbs don’t do exactly what they do and that the answer is to somehow add more of them so that tourists pay about what locals pay, which is utter silliness.
You’re missing the point. That’s literally the lowest possible price you would ever get with an airbnb. As long as tourists are willing to oay slightly more than rent, it’ll be more profitable to not rent.
You’re so close…
A) YES! There isn’t an infinite supply This is part of what will keep airbnb prices above rent.
B) When the supply changes, prices adjust until demand meets supply. That’s the entire basis of a free market. So, as the airbnb supply expands, sure price might lower but as it does, demand rises. It’s very hard to envision a scenario wherein supply rises so much that all the tourists are taken care of at such low prices that local rents are competitive.
But you seem to be ignoring the fact that running an airbnb costs much more for the owner than renting. And that if demand is low, the house will sit empty most of the time, even if it makes more money/time when you do have an airbnb guest.
idk man, I do think we could get airbnbs cheap enough, but I don’t feel like continuing this conversation more.
What are you basing this on? Airbnb charges cleaning fees. Any structural maintenance has to be paid for regardless of whether the home is a long or short term rental. And airbnb has insurance for serious damage.
If airbnb were much more expensive than long term rentals, it wouldn’t exist.
I’m pretty done too, you’re trying to claim airbnbs don’t do exactly what they do and that the answer is to somehow add more of them so that tourists pay about what locals pay, which is utter silliness.