The coronavirus has dealt a significant blow to vacationers. Here's what that means for the short-term-rental industry. bafeldman reports
Photo: Peter Glass/Getty Images The coronavirus and subsequent lockdowns have left virtually no industry untouched. Among the many affected is the short-term-rental industry, much of which is powered by Airbnb and the similar platforms that followed its lead. Airbnb’s pitch to city governments and property owners is that it’s a way for property owners to make some extra cash off of real estate that would otherwise be unused. But in practice, Airbnbs function as unlicensed and unregulated hotels.
A number of viral tweets and subsequent speculation have posited that the coronavirus has caused a spike in long-term rentals. The theory is that as the short-term market drops off a cliff, those properties are being taken off of platforms like Airbnb and moved onto long-term platforms like Zillow or Craigslist.
Airbnb supplied some recent statistics based on their markets in Nashville, New Orleans, Honolulu and Savannah . A cross-referenced sample found that only 2.8 percent of short-term rentals taken off of Airbnb had made their way onto the long-term rental market in those cities as of this week. In the month between February 22 and March 23, short-term supply in New Orleans and Savannah increased marginally, while supply in Nashville and Honolulu held steady.
One big indicator of Airbnb’s flipping to longer-term agreements, he said, is that there has been a noticeable uptick in furnished apartments being listed. “You don’t have to think too hard [about] what’s going on there,” he noted.
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