A Lone Data Whiz Is Fighting Airbnb – And Winning
I&#x27;m mostly discussing NYC since the subjects of this article have joined the fight against Airbnb but I think this is true in smaller markets as well.<p>Call me skeptical but I find it hard to believe that the guy behind &quot;Inside Airbnb&quot; is without outside help from entrenched interests opposing Airbnb. His website is obviously well made and his data is accurate but the cynic in me believes that the hotel lobby is helping him or funding him one way or another.<p>The lobby is funding political candidates in New York State from both political parties and they&#x27;re creating ridiculous anti-airbnb ad spots like &quot;Save the Moguls&quot;. <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=-yHRy7Hn2qg" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=-yHRy7Hn2qg</a><p>The hospitality industry has long held a stronghold in NYC due to short supply and strong demand growth. Now, hotels are popping up everywhere, especially in neighborhoods where Airbnb dominates, such as Brooklyn. The number of hotel rooms in NYC was 70k in 2010 and has now risen to 100-110k. 85% of which are in Manhattan. During the 9-10 month long peak season, hotel rooms go for $300-400&#x2F;night. Airbnb rooms are around half the price of a hotel room.<p>Another group widely cited as anti-Airbnb are the &quot;fair housing&quot; activists. Their complaint is that Airbnb is driving rents up and pushing residents out of the city. The reality is that if Airbnb is affecting the rental market, the net effect is no more than $30-40 per month (rough calc: assuming 10k apartments are taken off the market in NYC as per &quot;Inside Airbnb&quot;, with an non-stabilized rental supply of 900k units and avg rent 3k&#x2F;unit). The housing activists are doing next to nothing about that fact that virtually all new residential real estate in Manhattan and Brooklyn is aimed at the luxury market. A substantial portion of said market is being bought up by foreign nationals looking to park their money. &quot;Fair housing&quot; activists sounds like a false flag.<p>Paris &amp; NYC are Airbnb&#x27;s two biggest markets. Airbnb is fighting trench warfare- the good news is that in many ways, they&#x27;ve already won the hearts and wallets of their guests and hosts. The boutique hospitality market is already looking for ways to mimic the feel of Airbnb rooms and attempting to emulate &quot;belonging&quot; for travelers who are sick of generic looking hotel rooms.<p>The reality of course is somewhere in between the two points of view. In my opinion, the lower price point Airbnb hosts provide tourists is expanding demand to other economic levels and freeing up tourists&#x27; spending capital for local businesses while in-country.<p>At the end of the day, even though the battle is not over, this is certainly a win for the tech industry. Showing the world that technology can solve problems that previously required strong regulations. More &quot;sharing economy&quot; companies will continue chipping away at stagnant industries for generations to come.