Rather than a collapse of the industry, the increasingly bifurcated state of the market — a bust for some, a boom for others — is a clear sign that we have hit a turning point in the long-running battle over short-term rentals.
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Is Airbnb going bust? What investors and hosts need to know.
Airbnbs have long been seen as a haven for workers wanting a passive income stream and travelers looking for an alternative to pricey hotels. But whispers of an "Airbnbust" have spread among hosts facing booking slowdowns, stiff competition for guests, and tumbling earnings. All this, while short-term rentals have become the center of nationwide debates over how to regulate them.
AN OVERSATURATED MARKET OF AIRBNB HOSTS
The slowdowns hosts have been seeing in recent years come from one main source: too much supply. While Airbnb however, is experiencing no such bust – the company posted a record $2.88 billion in revenue last fall – some hosts are feeling more strained than they expected.
THE FIGHT OVER AIRBNBS
Short-term rentals became a go-to asset for real-estate investors during the pandemic thanks to low interest rates and federal stimulus aid. Now, many are advocating for limits to short-term-rental activity, such as requiring rentals to be licensed and fining owners who violate city laws.
Bozeman, Montana, is a locus of the debate over short-term rentals that's erupting across the US. Some residents blame them for rising housing costs, and others say they're essential to the economy.
In some cities, government officials are trying to regulate the number of short-term rentals that investors can purchase.
QUITTING AIRBNB FOR GOOD
Despite traveling reverting back to pre-pandemic days, some hosts have been seeing decreased revenue and less bookings. Other short-term rental owners have expressed growing dissatisfaction with Airbnb over their policies they see as favoring guests.
THE RISE OF ‘BAIT AND SWITCH’ SCAMS
Bait-and-switch tactics — offering one thing but actually advertising or selling another — are a common trick in lots of businesses. So it’s no surprise that it happens in real estate as well.
AIRBNB’S REPUTATION IS STILL INTACT WITH CONSUMERS
Despite travelers critiquing some Airbnb hosts' steep cleaning fees and checkout-chore lists last year, consumers' views of the short-term-rental giant haven't changed. If anything, it’s gotten better.
Despite the social-media hoopla, an analyst said Airbnb's reputation has "only become stronger."
