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

[DrBeer]

The problem is not Airbnb and digital nomads, the problem is the mentality of European people. You can't give me a single valid reason of why you should leave your parents basement and rent a 15sqm apartment. Just why? Why should you leave your parents? What's wrong with parents and sons and daughters living with them till they get married? I love this part of Asian mentality, they live with their parents, even after the marriage.

By the way, if European people will live with their parents, then number of rented apartments will significantly decrease, that will also decrease the housing price and those who really need to rent, will find apartments quickly, easily and with an affordable price.

In my personal opinion, I emphasize this, such a long term care of parents, leads to the development of "adult infantilism". in simple words - adult children can not become independent, and then, when they are forced to start living independently - for them it is a shock !
I am not against kinship relations, showing respect and love to parents.... But it is often behind it that children are not independent and are afraid to be responsible for their own lives.... 
The second problem is that such "attachment to home" limits a person's opportunities. Any young person can find a good job in another part of the city, in another city or even in another region. Attachment to parents limits such opportunities, and leaves only what is "close to home" to choose from....
Let me remind you once again - this is my personal opinion.

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[Don Pedro Dinero]

The problem is not Airbnb and digital nomads, the problem is the mentality of European people. You can't give me a single valid reason of why you should leave your parents basement and rent a 15sqm apartment. Just why? Why should you leave your parents? What's wrong with parents and sons and daughters living with them till they get married? I love this part of Asian mentality, they live with their parents, even after the marriage.
<...>

In my personal opinion, I emphasize this, such a long term care of parents, leads to the development of "adult infantilism". in simple words - adult children can not become independent, and then, when they are forced to start living independently - for them it is a shock !
I am not against kinship relations, showing respect and love to parents.... But it is often behind it that children are not independent and are afraid to be responsible for their own lives.... 

If we look at what happens in the US, the age at which children become emancipated is even lower than in Europe, and for better or worse, it is the richest and most powerful country on earth for the last century or so. We could criticise the USA for many things that I'm not going to go into here, but it depends on what you say about Asian culture being better because they live together until they emancipate. Neither yes nor no. And in southern European countries the age of emancipation is higher. In Spain it is around 30 years old, so the problem of rising prices does not lie in the fact that they emancipate at 18, generating a need for housing.

[Mauser]

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?

I agree with you that there is not going to be many changes anytime soon. Here in Europe, we have some Mediterranean cities that are getting visitors all around the year, it just doesn't make any sense for the landlord to get long term tenants when he can rent out his apartment short term with a premium to tourist. Tourist have much more money to spend on housing and don't care about paying higher prices as long as they are close to the city centre. The location is key here, as tourist are looking for ways to save as much time as possible in getting around the city. Which leads to the only real solution for the people living in the city, moving outside of the city centre. The time tourist will save to get around, the residents have to make up by commuting more to work. Some cities try to increase the regulation and make it harder for landlords to turn their apartment into Airbnb flats, but this is not going stop the change it will only slow it down a bit.

[so98nn]

That's really high rent considering you get no facilities that are basic amenities these days. I think it would be bad to rent and live if that is the case in your country. I would rather buy my own house and put the money in my bank account as EMI instead of the rent. I am not sure others think about it but Rent is a waste of money. You are just giving it away to someone for using their property that you will never own in the future. All you can do is leave that house and change the location for let's say less rent. Maybe someday homeowners try to doge us because they may wanna sell the property or come and live there by themselves. Those types of challenges are always there. So instead of going nuts like that better go to bank, put up house project proposal based on salary as income. Have decent low interest rate home loan and pay the bills ontime. It will boost your credibility, top ups can be done for furnitures and much more. 

[lixer]

The problem is not Airbnb and digital nomads, the problem is the mentality of European people. You can't give me a single valid reason of why you should leave your parents basement and rent a 15sqm apartment. Just why? Why should you leave your parents? What's wrong with parents and sons and daughters living with them till they get married? I love this part of Asian mentality, they live with their parents, even after the marriage.

There is obviously nothing wrong with living with your parents if they are living in the same city where you are working and you have good relations with them as long as they are not married or in a relationship and require privacy and a separate place to live. If we talk about Asians, I don't agree with the fact that they should live with their parents even after marriage because that creates problems very often.

By the way, if European people will live with their parents, then number of rented apartments will significantly decrease, that will also decrease the housing price and those who really need to rent, will find apartments quickly, easily and with an affordable price.

I don't really think that is the basic reason why rental prices are increasing and the there is a lack of rental spaces for people in need of them, it's mainly because people travel from other places and start renting and living either for the reason that they have jobs there or want to pursue further education, etc.

[flyingcarpet]

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.

The problem I can say about housing in my country is that a person owns more than one house and sets the high price he wants when renting. Therefore, it becomes difficult for those with low income to find a home and social problems arise. I do not find it right for a person to own a house other than the one he lives in. This leads to inequality in society.

During the last 2 years, when inflation increased, landlords increased the rents a lot. The state could not find a solution to this. People who own houses are usually rich people. That's why they increase the rent so much even though they don't need it. They prefer their homes to remain empty rather than renting them at low or normal prices. I think the real problem is opportunistic landlords.

[seanskie18]

I understand your perspective, and it's true that the housing system can vary significantly depending on whether you're a local resident or a tourist. For tourists, the cost of lodging can be a major consideration, and it's common to find higher prices at strategic tourist destinations. Many tourists do opt for tour packages that include accommodation to streamline their expenses. Additionally, having friends or acquaintances in the rental housing sector can be a more affordable alternative. It's important to plan according to your budget and preferences when traveling.

[Casdinyard]

Yep apparently so.

Airbnbs have thrown the housing system off the bus. Imagine buying a property, only for it to not be occupied 10 months of the year, that's 10 whole months that your money is not moving, and you're not letting anyone occupy the house. It's stupid and the system needs to change. This is literally the reason why Airbnbs will never replace the hotel economy. At the very least with hotels they are established enough that they don't need to worry about losing money, with Airbnbs, the same can't be said. We're undergoing a housing crisis and it's for sure going to affect these people, by the end of it they'll be selling these properties for cheap and most likely, it's not going to be granted to those who really need it. What a fucked-up world we're living in right now.

[Pejoh Asu]

The presence of many room rental applications is certainly the best way for those who want to rent out a room or house. It is natural that many people feel helped by these applications because they can choose the place they want. On the other hand, of course this is a problem for hotel owners which makes the occupancy rate become quiet.

[DubemIfedigbo001]

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.

In my own opinion, its only going to get worse as more tourists might visit in the future, thereby increasing the rental fees of those houses. There might even be a time that this cities are occupied by tourists alone. Government might do little or nothing about this because those tourists are instrumental to the growth of the economy and it means good business for them, they might have imposed high tax to house owners in that region leading to a very good increase in rental fee.

House owners too have the right to rent their property to anyone they wish  and you know my friend that the highest bidder goes home with the item. They're focused on making more money than embarking on humanitarian projects of considering those locals that have less to offer. Government can subsidize rental fee and build low cost comfortable housing, but are they willing to spend that money?.

In conclusion, this is a general issue plaguing most countries and the only effective solution I've seen is for you to move to where you can afford. Settle down there and manage it until you're  buoyant enough to move back to the more comfortable, high rental cities.

[dothebeats]

The presence of many room rental applications is certainly the best way for those who want to rent out a room or house. It is natural that many people feel helped by these applications because they can choose the place they want. On the other hand, of course this is a problem for hotel owners which makes the occupancy rate become quiet.

There is no doubt that the existence of Airbnbs and other short rental applications has significantly made it easier for people to get a place for a quick vacation or stay; not only does it make things more convenient as everything they need is on one application, but it also gives the convenience of making a reservation and booking with just a few clicks, unlike the traditional way of either personally going to the place or making a call (a task many of us do not really enjoy). However, in contrast with the convenience it brings us these applications also bring bad sales for hotels and other similar establishments as fewer and fewer guests are interested in staying in their places.

[Altryist]

I agree with you that there is not going to be many changes anytime soon. Here in Europe, we have some Mediterranean cities that are getting visitors all around the year, it just doesn't make any sense for the landlord to get long term tenants when he can rent out his apartment short term with a premium to tourist. Tourist have much more money to spend on housing and don't care about paying higher prices as long as they are close to the city centre. The location is key here, as tourist are looking for ways to save as much time as possible in getting around the city. Which leads to the only real solution for the people living in the city, moving outside of the city centre. The time tourist will save to get around, the residents have to make up by commuting more to work. Some cities try to increase the regulation and make it harder for landlords to turn their apartment into Airbnb flats, but this is not going stop the change it will only slow it down a bit.

Short-term rental will always be more profitable for those who rent out their home, even in cities where there is not a large flow of tourists.

There are even business models where the tenant rents an apartment for a long time, and then tenant, rents it out on a daily basis and thus earns money. If the owner of the property does not want to do this, does not want to spend time on it, then he will look for a long-term lease, if he wants to rent it out on a daily basis, then he can try to do this himself. But for this it is important that the apartment is located close to the center (or business center), or not far from the station.

[DrBeer]

The problem is not Airbnb and digital nomads, the problem is the mentality of European people. You can't give me a single valid reason of why you should leave your parents basement and rent a 15sqm apartment. Just why? Why should you leave your parents? What's wrong with parents and sons and daughters living with them till they get married? I love this part of Asian mentality, they live with their parents, even after the marriage.
<...>

In my personal opinion, I emphasize this, such a long term care of parents, leads to the development of "adult infantilism". in simple words - adult children can not become independent, and then, when they are forced to start living independently - for them it is a shock !
I am not against kinship relations, showing respect and love to parents.... But it is often behind it that children are not independent and are afraid to be responsible for their own lives.... 

If we look at what happens in the US, the age at which children become emancipated is even lower than in Europe, and for better or worse, it is the richest and most powerful country on earth for the last century or so. We could criticise the USA for many things that I'm not going to go into here, but it depends on what you say about Asian culture being better because they live together until they emancipate. Neither yes nor no. And in southern European countries the age of emancipation is higher. In Spain it is around 30 years old, so the problem of rising prices does not lie in the fact that they emancipate at 18, generating a need for housing.

I can only add that such processes can also be the result of cultural traditions, local habits and other reasons. Whether this is bad or good is the main question. My personal opinion is that it is bad, because I am in favor of early independence and responsibility, and I would add men in the first place. For example, in our country (Ukraine), a "boy" 25-30 years old living with his parents causes a smirk and real incomprehension. Even in big cities where life and accordingly real estate/rent is higher - most people try to earn more to meet their needs. 

[Fortify]

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?

Ultimately the balance of short term rentals vs long term rentals vs home ownership is heavily dictated by government policies which can vary wildly by country, so it's a hard answer to pin down. In some European countries they give renters strong protection from eviction, but you could argue that this disincentivizes new potential landlords from entering the market and incentivizes short term holiday lets instead. There should be a sustainable balance found for each, but demand can also vary by region and city, so it is a tough job to create laws to benefit everyone. Ultimately home owners will have the easiest ride, but getting on to the property ladder can be very tough these days.

[JeffBrad12]

The presence of many room rental applications is certainly the best way for those who want to rent out a room or house. It is natural that many people feel helped by these applications because they can choose the place they want. On the other hand, of course this is a problem for hotel owners which makes the occupancy rate become quiet.

There is no doubt that the existence of Airbnbs and other short rental applications has significantly made it easier for people to get a place for a quick vacation or stay; not only does it make things more convenient as everything they need is on one application, but it also gives the convenience of making a reservation and booking with just a few clicks, unlike the traditional way of either personally going to the place or making a call (a task many of us do not really enjoy). However, in contrast with the convenience it brings us these applications also bring bad sales for hotels and other similar establishments as fewer and fewer guests are interested in staying in their places.

reservation in hotel still has its perks, airbnb is just home sharing, you can expect significantly lesser satisfactory service, its as if you are just some random temporary roomates renting room and thats it.
meanwhile hotel are full fledged good services, from the very first time you reserved until you checked out.
it has its own market honestly.
airbnb usually are being taken advantage of by those relatively young people seeking for affordable rents, meanwhile hotel are for those vacation with much money.

[slapper]

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?

Ultimately the balance of short term rentals vs long term rentals vs home ownership is heavily dictated by government policies which can vary wildly by country, so it's a hard answer to pin down. In some European countries they give renters strong protection from eviction, but you could argue that this disincentivizes new potential landlords from entering the market and incentivizes short term holiday lets instead. There should be a sustainable balance found for each, but demand can also vary by region and city, so it is a tough job to create laws to benefit everyone. Ultimately home owners will have the easiest ride, but getting on to the property ladder can be very tough these days.

Government policies, right? They're the big players in the game of short term vs. long term rentals. And yes, yes, yes, these policies can differ so much from one country to another. Europe, for instance, is a fascinating case. Renters there have some strong protections, almost like a shield against eviction. Such policies might, just might, make potential landlords think twice... or thrice. Why dive into long-term rentals when short-term holiday lets could be more appealing?

Balance is key. But achieving that balance? It's insanely hard. Demand varies, regions differ, cities have their own dynamics. Crafting laws that fit all? Tough, super tough. But here's a thought: Bitcoin. It's decentralized, it's global, and it's a game-changer. Maybe, just maybe, if more people embraced Bitcoin, we'd see a shift in economic dynamics and property ownership. Homeowners do have it easier, but with Bitcoin's potential, who knows where the property ladder might lead?

[Silberman]

In most countries these days, it's like your entire salary is being consumed by the rent for your apartment. That's sad truth that many areas are suffering these days.
Can't stop the increase because these owners are also needing to adjust their rates and if there's not that much housing program in areas where you guys are located, it's not only you that does experience it.
We may not see this situation improving soon but it's not also going to be at top for most times.

I have little doubts that at some point on the future we may see another global crisis caused by real estate, since every single person needs a place to be and yet real estate prices have become increasingly high during the past decades, however I really think this is a bubble which could explode soon, as even if everyone needs a place to live, it is not as if people cannot find a way to make do without renting or buying their own property, and this could collapse the demand and the prices of real estate as well.

I am also believing that this bubble will pop soon and it's just a matter of time. I thought that after the pandemic and with all of these wars, everything will stabilized.
But it seems not and everyone is just coping to recover and that's why most of the properties are too expensive. I'm just waiting for that moment for it to explode and I am sure that time will come.
And those hoarders that have been doing that and bought those properties on a high price, won't be able to sell it higher.

And that is in fact the perfect moment to buy and we saw this during the 2008 real estate crisis at the US, in which everyone panicked and wanted to sell at the same time, this drove up the supply and the demand plummeted, so anyone that had cash in hand could buy for a 50% discount or more, the only issue is that under those circumstances you cannot buy with credit as banks do not want to extend credits to anyone, even to those that could actually pay it, so you will need to buy your dream property exclusively with cash.

[Ultegra134]

Okay, it's been a while since I've updated this thread, but I'm seeing that other users kept it going. The housing market in Greece, especially in touristy areas, is quite awful. My hometown barely has any houses available for rent, and every year it's met with the challenge of housing new university students. The available properties are often old, expensive, too small, or generally a combination of these unpleasant characteristics. I've moved to a different city now, which is considerably larger and also touristy but not solely dependent on tourism. Last year, the housing market wasn't that bad, at least not as terrible as it currently is. This year, there's been a great surge of Airbnbs', with whole blocks of flats aiming for short-term rentals. The average rent has increased by over 20% compared to 2022.

I recently rented a house that was quite new and in decent condition; however, this property wouldn't be worth its money if I found it in 2022. The whole city center is filled with Airbnbs', I believed that the bubble would eventually burst, but new ones just keep on coming.

[DrBeer]

...My hometown barely has any houses available for rent, and every year it's met with the challenge of housing new university students....

I apologize - why don’t the city authorities build student dormitories and rent them out to students, solving 2 problems - settling students + getting an additional income channel?! Or why don't private investors do this? This is a “treasure2” for investment - there is a constant, growing, unmet demand! Plus, a bunch of services will be added there - from laundry to cafes/pizzerias and pharmacies, for students. Such projects provide good development where there were problems... It’s not right to take the problem , isolate yourself in it, and just complain... Many problems can actually be turned into positive events!

[summonerrk]

~~~

These are the usual laws of the rental housing market. If the demand is high and a lot of people want to move into rental housing, then there are fewer and fewer offers and each of them is growing in price, because they are becoming very important and valuable. This is an indicator that an excellent investment would be to start your own hotel business, or an apartment rental business.

I advise to OP to find a friend or girlfriend together with whom it would be possible to rent an apartment, pay for it together. I rented an apartment with a friend when I was a student.