How Airbnb Is Disrupting The Housing Market
Airbnb may have deposited a chunk of the housing economy into the lap of the open market, but the fact that this cannot be faulted at face value, doesn’t mean that it hasn’t damaged other industries in the process. The hotel and leisure accommodation industry, for one, has been totally disrupted and thrown into an absolute state of turmoil. And it now seems as if Canada’s corporate temporary housing sector is next in line for a beating.
Surprisingly enough, the problem isn’t as much one of an over flooded market in terms of supply, but rather the fact that Airbnb as a sub-sector of the housing economy, has drawn to itself much in the way of regulatory attention. This, in turn, has caused the same levels of focus to be directed at corporate housing companies.
Needless to say, an increase in regulatory attention isn’t exactly everyone’s cup of tea.
Short Stays Are The Problem
Its a fact that overnight guests are more likely to spread mayhem and destruction than anyone having to make do with their living arrangements on an ongoing basis. And this, incidentally, is exactly where the problem started. Or rather, publicity enjoyed by the occurrence, is where the problem started.
So much so that condo-buildings all over Canada have started to show away companies tasked with finding short-term accommodation for business executives and the likes. Not wanting to fall prey to some of the atrocities that they’ve seen on television and read about in the housing-horror sections of local newspapers, corporate housing schemes are more than happy to go without a bit of business than having to repair and replace to the tune of hundreds of thousands of dollars every year.
Tilting The Market
Some buildings are going as far as refusing all persons intending to stay fewer than 12 months, with others yet settling for 6 or 3 as the bare minimum. By-laws are being implemented based on pure hear-say, and an entire sector of the housing economy is too afraid to admit that it may have to close down shop altogether.
Studies show that the problem with corporate housing businesses refusing transient stays is made all the worse by British Columbia’s already wobbly housing market. Its harder to find a place of residence in the province than what it is to find a replacement for the pope.
And the fact that Airbnb has created nothing short of an empire for itself doesn’t exactly serve to sooth the many bruised ego’s clutching at ransacked wallets.