Allyson E. Gold, Community Consequences of Airbnb, 94 Wash. L. Rev. 1577 (2019).
Available at: https://digitalcommons.law.uw.edu/wlr/vol94/iss4/2
A lengthy (61 page) document, well worth a read.
Abstract
"Short-term rental accommodations account for more than 20% of the United States lodging market, with annual sales now greater than those of nearly all legacy hotel brands. The rise of companies like Airbnb has created a booming market that provides affordable short-term rentals for travelers and new income for those with an extra couch, spare room, or even an unused home. However, while individual hosts and guests may benefit economically, the use of short-term rentals produces significant consequences for the surrounding community. Airbnb proliferation causes fewer affordable housing options, higher average asking rents, and erosion of neighborhood social capital. Due to discrimination among users on Airbnb’s platform, many of the benefits of short-term rental accommodations accrue to white hosts and guests, locking communities of color out of potential income and equity streams. These issues raise a question at the core of property law: which stick in the bundle is implicated by a short-term rental accommodation? Current regulations attempt to walk the line between protecting property rights and mitigating externalities created by short-term rental accommodations and borne by the local community. In doing so, the law fails to adequately address consequences resulting from the vast increase in short-term rental accommodations. This Article assesses the benefits and costs of short-term rental accommodations and analyzes how current statutory approaches amplify or diminish these effects. After examining the legal, economic, and social interests of multiple short-term rental accommodation stakeholders, including hosts, guests, the local community, and platform operators, it argues that current policies are fragmented, inconsistently applied, and ineffective. Instead, the law must be reformed to better secure access to affordable housing stock, prevent “hotelization” of residential neighborhoods, create meaningful opportunities for diverse users to share economic gains, and eliminate pathways to discriminate on homesharing platforms like Airbnb."
Extract from pages 17-18
3. Changes to Neighborhood Composition
As landlords convert their units from long- to short-term rentals, striking changes appear in neighborhood character. Where once there were communities of mutually invested neighbors, now there are tourists with needs that may conflict with permanent residents. As noted in a 2016 study on short-term rentals conducted by the City of New Orleans Planning Commission, the “overarching concern of the opponents with short term rentals is the commercialization of residential neighborhoods.”
These conflicts result in decreased quality of life for long-term residents. As Airbnb listings increase, there is an increase in negative externalities felt by locals. Residents in Bath, England, for example, reported that short-term rentals increase noise levels, unsanitary conditions, and illegal disposal of garbage.
In the popular Silver Lake neighborhood of Los Angeles, the Neighborhood Council has received complaints from residents that include “unfamiliar cars blocking driveways, late night parties on formerly quiet streets, and concerns about child safety in an environment with fewer eyes on the street.” New Orleans’s Short Term Rental Administration contemplates the effect of rentals on the surrounding neighborhood. In New Orleans, “short-term rentals shall not adversely affect the residential character of the neighborhood nor shall the use generate noise, vibration, glare, odors, or other effects that unreasonably interfere with any person’s enjoyment of his or her residence.”
Despite this, residents reported being affected by the influx of short-term rentals. At a 2018 City Planning Commission hearing on how Airbnb is affecting quality of life, residents of those neighborhoods most highly saturated with Airbnb rentals “described loud, disruptive tourists and said the influx of short-term rentals is hollowing out their neighborhood.”
An influx of rental units “reduces the cohesion in the neighborhood, reduces the number of people who are invested in the neighborhood, and damages businesses that serve the local population.”...............
............"CONCLUSION
Airbnbs can provide a boon to hosts and guests. By converting a previously underutilized asset into a short-term rental accommodation, hosts gain a new income stream and increase their home equity. Guests, too, benefit from Airbnb’s platform, as the accommodations are typically more affordable than traditional hotels and provide an opportunity to “live like a local.” These gains, however, come at a cost. While individual hosts and guests may benefit economically, the local housing market experiences significant change in the form of fewer affordable housing options and erosion of neighborhood social capital. At the same time, discrimination on Airbnb’s platform means that the benefits and consequences are not evenly distributed, with economic gains accruing disproportionately to white users. As Airbnbs continue to gain popularity, it is essential that legal strategies support their economic benefits while curtailing community harms. "
Adopting multi-faceted and comprehensive approaches are necessary to protect affordable housing stock, prevent hotelization of residential areas, and create meaningful opportunities to benefit from participation in the short-term rental market.
To read the full paper visit https://digitalcommons.law.uw.edu/wlr/vol94/iss4/2
Editor's Note:
Do you have a view on the short term accommodation issue in Noosa? We would love to hear from you and are happy to post your contribution here anonymously. The more local stories we have the better. Please always cite sources whenever statistics are quoted. Email to: nnsnoosa1@gmail.com
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