Are short-term rentals to blame for the lack of housing?

[Ultegra134]

I've been inactive for quite a while because I'm in the process of renting a house. I don't know how easy it is in other countries, but here, it's an extremely time-consuming and nerve-racking process. I spent more than a week in the streets without any success.

I know for a fact that many tourist-oriented cities across Europe are facing similar issues due to the increasing supply of Airbnbs and the increase in digital nomads over the years. This is rendering the situation uninhabitable for local residents, who have to face the constantly increasing rents because homeowners prefer to rent to tourists and digital nomads, who have a much higher spending capability. On the one hand, from homeowners' points of view, it's understandable; they want to make the most out of their property, but on the other hand, locals will ultimately be forced to leave the city or live in poor conditions.

For instance, a typical example of how much remote working has spread in Europe and Greece specifically is the following: The official digital nomads Facebook group used to have less than 5,000 users approximately a year ago; now it has over 34,000, which doesn't necessarily mean that all these people live in Greece and work remotely, but I'm trying to emphasize how broader the issue is for locals because there's an increasing interest in short-term rentals. I remember a few years ago, the local newspaper was filled with housing listings, but after the introduction of Airbnb and short-term rentals, this has changed. Not only is there a lack of housing due to the increasing demand and the constantly decreasing supply, but those that are available are too expensive and, in some cases, unsuitable to live in due to how small and improvised they are. My previous apartment was in the basement and suffered from serious humidity and mold issues.

The average rent for a one-bedroom apartment in my area is about €400, which is still far from being perfect or ideal, often lacking basic utilities such as proper heating or a solar water heater, which is a must for the 300 days a year of sunshine we have. I know that compared to other European cities, this amount of money sounds insignificant, but when the average salary is approximately €700, you can wish yourself good luck living alone. No wonder almost half of the population aged between 18 and 25 still lives with their parents.

In my opinion, it's doubtful that this situation is going to improve anytime soon. Touristic cities are bound to suffer from a lack of available housing for long-term rental, and Airbnb can no longer be regulated in order to create a balance between locals and tourists. What do you think can be done in such cases, and what would you do on a personal level? Move out, stick to paying an extreme amount for housing, or live in a substandard apartment hoping to find something better in the future?

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[EarnOnVictor]

I will like to reply to two points here, the first one is your point that Airbnb could not be regulated again, while the second is the summary of the whole thing if short-term rentals are to be blamed.

Well, Airbnb and other similar businesses can be well-regulated, but some governments might not be willing at that time, and it's often late before the government intervene.

Also note that this is business and also good for tourism, though it's causing housing issues because property owners might want to maximize their profits, which is normal. It's simple, it's a matter of more demands than availability, this is where the government should take action by encouraging investors in that sector, and by providing access to more facilities that will not only encourage the government to provide housing units but also encourage mortgages and real estate buoyancy in the country.

[coupable]

There is a housing crisis in all major cities around the world, and it can be said that prices cannot be controlled, which are subject to the principle of supply and demand. Less offers and more demand. On this basis, not everyone is able to find adequate housing in these cities. Here are some ideas that might be helpful:
- The suburbs of these cities may be less expensive to rent in agreement with a housing partner. This would be a good option with a car or public transportation available.
- Governments usually provide social housing at prices commensurate with the financial capabilities of the middle class. You may seek to obtain one of them.
- If it is possible to change work to less crowded cities, the chances of finding suitable housing are much better.

[Gozie51]

Regards to your stress in trying to look for a house for rent, you can't do it alone. You need agents or Airbnb depeion what you are looking for.

Housing is such an expensive aspect of life in this time around and you know many investors have gone into such business and that is why you see the short term rentals making much money, it is about the business and profit for them. Across the globe, short term rentals make more money than the long term accommodation and in some area what you see is just the short term rentals. This is where the government has to come in. They need to build more houses. In the past in Nigeria, it was the practice that different state government built houses for the civil servants and others housing estates that where put on rent, mortgage or lease. Some houses were built by government for outright sales but I think this time around, the government isn't focusing on proper housing regulation because then there was Federal Housing Authority (FHA), I don't know how active that authority is now.

[rachael9385]

Some years ago I wanted to travel to Lagos State in Nigeria but I couldn't because of this same issues, (lack of apartment) lack of houses are becoming annoying thesdays, is good for an environment to develop but if any city is well developed it will be very hard for the poor to stay there because they can't afford to pay for rents and other things.
Nowadays people who have little money buys a small plots of land and live it for some years and when the locality starts developing they build or they sell the land hug amount of money  and it's becoming common this days, its a pity for someone to stay in a place where he's not comfortable because of rent (not having enough money to rent an apartment sortable for you).
In some places after paying for rents you still pay agent fees and some of this fees is more than the house rents.

[hyudien]

Personally, I don't understand the housing system because most of us live in rural areas and rarely travel, even if I go on a trip to a remote place once a year. Let me argue from the point of view of tourists or tourists in terms of the availability of places that have been prepared by tour guides, here maybe I will comment on the very expensive price of lodging, traditions like this are commonplace when we visit tourist attractions. Usually there is an alternative to having friends or acquaintances in the rental housing sector so that they can provide affordable options. Once again, when the location of housing or rental houses is strategic, we cannot deny that the price will be more expensive. For this reason, while my family and I are traveling, we always make sure that lodging is included in a tour package so that we don't have to pay twice the cost.

[icalical]

I live in a countryside in SouthEast Asia, in here the it's kind a the opposite because subsidize houses - a 62m2 house not apartment - are oversupply, hundreds of those small houses are empty no one wants to buy them, since the area are not developed and lack of public facility. Thing is different in the city, the rent went up high. I guess people are still going to the office daily in here that's the reason why the city is still overcrowded.

In my opinion, it's doubtful that this situation is going to improve anytime soon. Touristic cities are bound to suffer from a lack of available housing for long-term rental, and Airbnb can no longer be regulated in order to create a balance between locals and tourists. What do you think can be done in such cases, and what would you do on a personal level? Move out, stick to paying an extreme amount for housing, or live in a substandard apartment hoping to find something better in the future?

Tho I get your point, but those tourist are not only one to blame, I would blame the landlord, app creator and the government regulator first, those tourist used to stay in a hotel, and they are totally fine with it, until the airbnb came and people choose what's cheapest.

[Ultegra134]

I will like to reply to two points here, the first one is your point that Airbnb could not be regulated again, while the second is the summary of the whole thing if short-term rentals are to be blamed.

Well, Airbnb and other similar businesses can be well-regulated, but some governments might not be willing at that time, and it's often late before the government intervene.

Also note that this is business and also good for tourism, though it's causing housing issues because property owners might want to maximize their profits, which is normal. It's simple, it's a matter of more demands than availability, this is where the government should take action by encouraging investors in that sector, and by providing access to more facilities that will not only encourage the government to provide housing units but also encourage mortgages and real estate buoyancy in the country.

I believe that it's too late to intervene, thus, they simply let it be. It certainly is good for tourism but we can't let locals aside, tourism is a great industry I don't believe the opposite, but it has gone out of hand that's interfering the locals negatively.

There is a housing crisis in all major cities around the world, and it can be said that prices cannot be controlled, which are subject to the principle of supply and demand. Less offers and more demand. On this basis, not everyone is able to find adequate housing in these cities. Here are some ideas that might be helpful:
- The suburbs of these cities may be less expensive to rent in agreement with a housing partner. This would be a good option with a car or public transportation available.
- Governments usually provide social housing at prices commensurate with the financial capabilities of the middle class. You may seek to obtain one of them.
- If it is possible to change work to less crowded cities, the chances of finding suitable housing are much better.

Usually living in the suburbs worked, at least in the past, now, even the suburbs have developed so much that it's almost no different than living in the city. This surely depends on where you live, this might be an individual case in my area. The condition to receiving government assistance is usually against you too, there are some requirements that it's hard to qualify, but that's a lengthy discussion for a different matter. Moving to a non touristic city may be a better solution, but like all options, it has major disadvantages too

Regards to your stress in trying to look for a house for rent, you can't do it alone. You need agents or Airbnb depeion what you are looking for.

Housing is such an expensive aspect of life in this time around and you know many investors have gone into such business and that is why you see the short term rentals making much money, it is about the business and profit for them. Across the globe, short term rentals make more money than the long term accommodation and in some area what you see is just the short term rentals. This is where the government has to come in. They need to build more houses. In the past in Nigeria, it was the practice that different state government built houses for the civil servants and others housing estates that where put on rent, mortgage or lease. Some houses were built by government for outright sales but I think this time around, the government isn't focusing on proper housing regulation because then there was Federal Housing Authority (FHA), I don't know how active that authority is now.

Real estate agents here suck big time, they are the absolute worst. The majority of them don't do anything more than create a listing on the internet and forget about it. You have to chase them in order to assist you and show you the properties, when it should be the exact opposite. Agents should listen to your needs and assist you to find the optimal property to rent. It used to be that way, but the recent demand in housing lead to a massive increase of so-called agents that lack the skills and the professionalism to be of any help.

[Yamane_Keto]

In my country and the place where I live now, the situation is much better. There are various options for rent, which start from $ 300 per room and reach an average of $ 700. You can find suitable housing for a small family for $ 2,000, while the average salary is about $ 6,000 per month.
Therefore, a young man and a newly married man can rent a suitable space for his family, but finding a large space is the problem, as most of the dwellings are one or two rooms and are not suitable for forming a family.
You can find larger areas in the countryside for the same price, but this means losing 4 hours of your day due to traffic and distance.

[Flexystar]

I think problem is common everywhere if this is the case in western side. I mean this applicable to most of the metropolitan cities. There are two cases either the property is very costly or the property is not available at all. This is what happening everywhere and it will even become worst as we move forward. Students are increasing in number, many properties are also rented by them in groups so they are not available for the families. In many cases people like to stay in the community based circle but when it’s students around it’s chaos so they usually has to compromise such areas. There are actually many filtering criteria that needs to be understood before one can rent to be honest. I feel you in this case.

[Razmirraz]

If I may guess, you must be looking for a house to rent in a big city that is very densely populated. Tourist attraction to big cities will continue to increase every year, moreover these cities are full of beautiful tourist destinations. It's very difficult to find decent housing in a big city, you've looked everywhere and spent a week but to no avail.

Along with increasing demand, the supply is also getting higher, for people who are in the upper class of the economy are not a problem with that price. But for people who want to find a long-term residence, they should think twice about reaching an agreement with that price, let alone the reason for seeking sustenance in the new city they want to live in.

[Zlantann]

In my opinion, it's doubtful that this situation is going to improve anytime soon. Touristic cities are bound to suffer from a lack of available housing for long-term rental, and Airbnb can no longer be regulated in order to create a balance between locals and tourists. What do you think can be done in such cases, and what would you do on a personal level? Move out, stick to paying an extreme amount for housing, or live in a substandard apartment hoping to find something better in the future?

Most governments in Europe need the funds that tourist brings to the country. The revenue from tourism is huge and many nations will continue to formulate tourist-friendly policies to attract more of these digital nomads. We are also facing the same issues in my country because of rural-urban drift. You have few options because this will not change very soon.

You should consider moving to places that are less attractive to tourists. These areas will have available and cheaper houses. I know it will be a problem maybe considering the location of your job. But if you work online, it will be a good option. These areas might not be as comfortable as other good cities but you need more money to compete with tourists.

Another option will be to increase your income. If you have more money, you can afford any kind of accommodation you want. So if you can get another job or get a new skill, you can earn more to pay higher rent.

[Haunebu]

This is a problem primarily in western countries while it's not such a big deal in asian countries. I cannot understand what you are going through op since I have never faced such a situation in my life thanks to my owned home.

My advice for you is to stay in a shared accomodation like hostel etc and save money until you are capable of shifting to a great home later on.

[mvdheuvel1983]

I concur that Airbnbs have artificially kept house prices high, obstructing a healthy market. Some non-locals in my tourist-friendly town demanded that the city not impose any restrictions on the number of Airbnbs so they could purchase homes they couldn't afford and then convert them into Airbnbs. To put it another way, they "could" afford a $2.5 million property if the city let them to convert it into an Airbnb but they "could" not afford the typical $1,200,000 home. The disaster, which is the housing crisis is already happening. Following damaging "get rich quick" schemes, the rest of us are left to clean up the mess. There should be laws made against this.

[Lucius]

Are short-term rentals to blame for the lack of housing?

In your specific case, there is no doubt that this is true, as well as in any tourist country, where real estate owners in tourist locations make more money by renting out their properties than by renting them out to the local population. Given that I live in a similar country, I know how things work and unfortunately you cannot force anyone to rent or sell their property to anyone, and that would actually be wrong in principle.

~snip~
In my opinion, it's doubtful that this situation is going to improve anytime soon. Touristic cities are bound to suffer from a lack of available housing for long-term rental, and Airbnb can no longer be regulated in order to create a balance between locals and tourists. What do you think can be done in such cases, and what would you do on a personal level? Move out, stick to paying an extreme amount for housing, or live in a substandard apartment hoping to find something better in the future?

Everyone has their own preferences when it comes to the environment they live in, but I would personally look for a quieter location outside the big cities where the prices are the highest. Of course, this raises the issue of distance from the workplace if it is located in the city, but sometimes you cannot have cheap and ideal accommodation near the workplace.

When it comes to tourism and climate change, I have read predictions that summer temperatures will be higher and that this will affect everyone involved in tourism, especially in the Mediterranean, where this summer broke all temperature records with extremely strong storms. The question is whether you can wait for it and whether you should even hope for it, because tourism is very important for your country.

[stompix]

What do you think can be done in such cases, and what would you do on a personal level? Move out, stick to paying an extreme amount for housing, or live in a substandard apartment hoping to find something better in the future?

For country-level solutions, it's simple, build more! More housing than demand lowers the price making it more affordable.
Do nothing solution and wait, another thing that will work since the law of economics will start biting also, there is an influx of cash to the homeowners, there are people who spend more, thus prices in that region become higher, once the price becomes higher it becomes less attractive for most digital nomads who do this for cheap housing and start moving to the next city.

On a personal level, nothing that you can really do without compromises.
Earn more spend less or move away!

This is a problem primarily in western countries while it's not such a big deal in asian countries. I cannot understand what you are going through op since I have never faced such a situation in my life thanks to my owned home.

Because you pack 100 houses in 100 sqm?
The average house in Spain is 95 sqm, it's 43.6 in China 47 in India, and 39.2 for the Philipines?

[Gozie51]

My advice for you is to stay in a shared accomodation like hostel etc and save money until you are capable of shifting to a great home later on.

Hostel accommodation is not advisable for op based on what he shared. Hostel accommodation is also part of short term rentals and that is expensive to take care of. Those who stay in such kind of accommodation are those looking to seal a business deal as fast as possible and they require short term rent, those that are schooling for academic certificate in a location far from where they are living, those that are expatriate and tourist.

[Yogee]

All I'm thinking while reading your post was buying a two or three bedroom house on loan. Occupy one room and lease the rest so that would help you pay off the debt and maybe have some excess for taking care of utilities. I don't know the situation of real estate in your area so maybe try to inquire and then crunch the numbers.

[SmartGold01]

Generally housing are too difficulty to rent especially when you wanna change your apartment to a newer and a more better than the previous, and you ought to face lots of challenges in securing a comfortable apartment for yourself, I could remembered vividly sometimes earlier this year when my husband was looking for a newer and bigger apartment moving from our self-contained apartment to a one-bedroom apartment.

He started sourcing the apartment since from last year December and we lived close to a university where students always occupied most of the apartment and especially those students whom there parents are very wealthy doesn't hesitate to secure an apartment because to any amount those house owner places their price student would rent it without any waste of time or even slightly want to negotiate price with house owner, and to any amount they are willing to pay without minding or having to consider those who are living or even those that are to come because they already set a standard for rent in that region and, the worsts part of it is that they always increase their rental in every year without considering the inflation and to compared with the average salary of some worker.

Even as that most people always ends up spending their entire savings in housing and how do you think this people could meet up in life because I know too well that they must save and, apparently any worker who doesn't save do not really securing himself or her family a better life as I believe that there is always a challenges to come, although despite people do not pray to face any problems in life but we most act on a predictive aspect of life to always have a backup when the time shall comes.
Yes! This could be true or not but is something inevitably that we must face in life, especially when it comes of house renting and properties.

To be frank with you, and also I don't know your condition to be single or married but I am on the opinion that you could still remains with your previous apartment and only if you think you can inhabit there then back down and remain over there while you work and save money to secure a better place for yourself. All less you have a family where that place doesn't longer contains you people maybe you feels uncomfortable whenever you finds yourself inside same apartment, yes this could likely be true but you don't need to over stress your or having to compete with the tourist those who spent money without having to determine whether others are up to such standard.

Off course, they don't have to consider because they're not in same shoe with you so they can spend their money however and whenever they feels like spending and it could be in an expensive things, luxury, maybe cars and on whatever they feel is attractive to them without humiliation.

But for you not to be intimidated you don't have to live in same locality with them maybe you could find yourself over an area where you feels is more conducive for your standard and way of life, unlike us over here we do our best not to live a stressful life or being on a competition with those whom we think we can't compare our standard of life to theirs.

[hugeblack]

I work and reside in an area visited by millions of tourists annually, and most of them come to see the actual events and rent apartments, and I had a partnership in a neighboring area, in which the last year’s world cup took place, as millions of people visited Qatar for the first time, it is a small country, and the number of tourists greatly exceeds the number of citizens and residents, I can understand Your problem, but mostly tourists tend to choose areas close to the airport, which are very safe and that enable them to reach tourist destinations directly without complications in transportation. From the train station or near a tourist attraction, and so on. And the 10-minute is considered as a sport, especially if you are young and live alone.