Study: Landlords Using Airbnb Can Earn A Year’s Income in 60 Days

Study: Landlords Using Airbnb Can Earn A Year’s Income in 60 Days

Says a new report from Inside Airbnb regarding Los Angeles. The study ignites fears that lucrative short-term rentals are depriving the city of longer term leases, fueling a housing crisis.

Today, inside Airbnb’s Murray Cox released data showing that affordable housing will be lost if short-term rentals are permitted for as few as 60-days per year in some Los Angeles neighborhoods. Los Angeles Alliance for a New Economy (LAANE), analyzed the data and found that across all Los Angeles neighborhoods it takes an average of just 83 nights per year to earn more on Airbnb than can be earned in a whole year of renting to a long-term renter.

“Most people following the debate around regulating this industry don’t understand the impact that the ‘cap’ on days per year has on the overall housing market in Los Angeles,” say Roy Samaan, LAANE Research & Policy Analyst. “For the overwhelming majority of neighborhoods across LA, a 90 day cap offers a weak incentive for landlords to rent out their units on Airbnb. However, the currently-proposed 180 day limit offers a substantial financial incentive to rent out units on Airbnb instead of long-term tenants.”

Regulators all over the world are currently working on ways to control Airbnb and other short-term rental platforms. The issue of “caps” on days has been considered and implemented in a number of cities. Many of these cities have found the caps impossible to measure and enforce, leading to complete bans on short-term-rental activities.

“Protecting affordable housing has been the goal of regulations in a number of cities,” said Murray Cox, founder of Inside Airbnb.

“Again and again regulations have failed. New York and San Francisco, as examples, have revised their ordinances because enforcement is impossible and compliance rates are low. Based on my incentive analysis of existing Airbnb’s operating illegally in Los Angeles, it’s clear that landlords will be economically motivated to turn more affordable apartments and homes into short-term rentals.”

“It’s vital that the City of Los Angeles adopts short-term rental ordinances that are both enforceable and truly protect affordable housing – and that means a complete ban on entire home rentals, or a low cap with data sharing and platform accountability.”

Data for a number of Los Angeles neighborhoods appears below. On average in Los Angeles, it takes 83 nights per year to earn more on Airbnb than can be earned in a whole year of renting to a long-term renter.

Zip Code Neighborhood Council District

Number of Nights Needed to Earn More on Airbnb than
Renting Long Term

90291 Venice

11

83

90028 Hollywood/Thai Town

13

86

90026 Silver Lake/Echo Park

13

79

90027 Griffith Park/Los Feliz

4 & 13

79

90029 Downtown Los Angeles

14

88

90063 Boyle Hts/City Terrace

14

84

90004 Koreatown

10 & 4

78

91602 North Hollywood/ Toluca Lake

2

68

90048 Beverly Grove

5

76

90731 San Pedro

15

91

91405 Van Nuys

6

80

90065 Cypress Park

1

86

91364 Woodland Hills

3

75

90008 Baldwin Hills/Crenshaw

10

84

90018 Jefferson Park

8

87

90011 South Los Angeles

9

79

Inside Airbnb | Lead image: Frazer Harrison/Getty

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