I think the most likely possible causal link between airbnb and rising rents is that airbnb reduces availability by giving people who would otherwise terminate leases (because they're moving to a new city, say) the option to keep their lease and pay the rent by hosting through airbnb. Reduced availability -> higher rents.

The airbnb option could be especially advantageous in cities like SF that limit how much rents can go up each year for continuing leases. (I.e., your rent is limited by the rent board to a 1-2% increase per year, while inflation is 2-3% per year, and so your net income from airbnb increases, in nominal *and real* terms, each year.)

Pretty interesting questions, I don't think they're really resolved yet! Would love to chat about them with others so interested...

Best,

J.D.

On Wed, Oct 30, 2013 at 1:08 PM, Sonja Trauss <sonja.trauss@gmail.com> wrote:

Now I don't know - I thought about it and air b n b raising rents would mean that people are planning to use air bnb and depending on that income to help them pay their rent. They are making these decisions before they are signing leases. That didn't sound realistic to me.
More likely is that I read some sloppily reasoned article that noticed a correlation between airbnb use (in sf) and rents rising.

On Wednesday, October 30, 2013, Eddan Katz wrote:

you're probably right. but i would hope it could be architected so that was less of a problem. one thing that seems to make a big difference is whether it's a deductions-based rather than tax-based.

On Oct 30, 2013, at 8:51 AM, Sonja Trauss <sonja.trauss@gmail.com> wrote:

Doesnt this drive up rent?

On Wednesday, October 30, 2013, Eddan Katz wrote:

For those who have not been following the Airbnb legal troubles, this story has been called "Airbnb vs. New York City: The Defining Fight of the Sharing Economy" (http://skift.com/2013/10/13/airbnb-vs-new-york-city-the-defining-fight-of-the-sharing-economy/; w/ links). I would rather call this version of peer production - collaborative consumption, but do think that the way this goes will be a key turning point. It's not just the hospitality political lobbies that are the problem, it's also the landlords' lobby.

Dear Eddan,
I'm writing to ask you to help save Airbnb in New York.

As a guest who has stayed with a Host, you know how unique and local an experience that is. And you also know the majority of our hosts are just regular people making ends meet by renting out their own homes.
Now, that experience is under threat.

The New York Attorney General has subpoenaed the records of almost all of our New York hosts. We are fighting the subpoena with all we've got, but poorly written laws make for even worse enforcement. Unless you help to stop it once and for all, the laws may never get better and the threat to our New York community will continue.

A petition to change New York law already has over 88,000 signatures, and an Airbnb host, Mishelle, has pledged to personally deliver it to the New York Senate. Our new goal is 100,000 signatures. We hope as many people as possible will encourage New York to change the law.