Is Airbnb the reason housing is no longer affordable?

Photo above - before there were Airbnbs, there were still parties like this. Name the film this screen shot came from . . .

I regularly encounter rants that “corporate America” is buying up vacant homes and turning them into rental properties. This could be true, but the statistical evidence for this so far is scant. Apparently, the top 3 corporations pulling this home rental stunt collectively own only 20,000 homes across America. Probably not the main culprit, IMHO.

Then I ran into the “Go Banking” article in the link below. “Become an Airbnb millionaire!!!” You can tell the author – Bill Faeth – is serious about this. He has his own website, and his vibe is very much like someone running for political office. “Family man, entrepreneur, investor, coach”. Maybe he’s a decorated veteran too? Dog lover? Okay I’ll stop snarking and stick with the housing affordability question.

Which do we need more of? Airbnb millionaires, or affordable housing?

The answer is NOT going to be creating a bunch of new laws which outlaw Airbnb, or even corporations, from buying homes listed for sale. There are millions of oldsters sitting in the dark in their 30-year-old tract homes in suburbia who would like to sell, and depending on the equity/profit to fund their last few years of retirement and world’s highest medical expenses. Telling them they can’t sell their home to “Bill Faeth – Airbnb millionaire” isn’t fair to people who’ve paid their mortgages faithfully for decades. But I do, however, have a solution.

If the Bill Faeth's of America want to vacuum up all the boomer and widow’s homes, they probably should pay a property tax rate different from someone who is actually living in that home. Let’s hold the line on property taxes paid by owners – whether new purchasers or long time law abiding citizens. But if you want to flip a house into a something like a mini Holiday Inn for weekend guests, you should pay commercial property taxes, not residential homeowner property taxes.

Your flipped Airbnb is going to create noise, traffic and crime beyond what the average homeowner is capable of generating. That Airbnb is going to be overcrowded, host rowdy parties, have unleashed dogs, underaged drinking and a general attitude of “eff it . . I don’t live here. I’ll be gone tomorrow. Party on!”

How much higher should property taxes be on Airbnbs? I’ll leave this to local voters and politicians. If they feel Airbnb guests are a boon to their community, they don’t need to set a different rate. Or they might even lower rates. But I’m guessing most communities will view Airbnb property taxes as a windfall, and hit on the idea of using them to fund police, schools, fire departments, ambulances, and trash collection.

At least, that’s what I would do, if I was a local mayor.

I’m just sayin’ . . .


I’m an Airbnb Millionaire: Follow These 3 Steps To Earn $250K in Rental Income

Bill Faeth – Entrepreneur, Family Man, Business Coach