Airbnb started as some quaint fun in 2007. Roommates Brian Chesky and Joe Gebbia had the idea to make some quick cash by inflating an air mattress in their living room and hiring it out as a bed and breakfast. Hence the name Airbnb. Although back in those days it was initially known as air bed and breakfast.
Since those early days, the Airbnb, or the short stay concept, has exploded. It’s gone from its initial idea of a host renting a private room and meeting new people, just like a traditional bed and breakfast, to something of a quasi-hotel service. Except there’s no host onsite and the guest has the run of an entire house or apartment.
The data scraped from Airbnb listings in Australia suggests entire house/apartment listings are 70% of listings in the major cities and can be 80-90% of listings in regional areas.
This tilt towards entire houses/apartments has fueled concerns, both in Australia and overseas, that short stay accommodation is contributing to housing shortages and pushing up the price of rents. There are other concerns around anti-social behaviours and dangers in mostly unregulated and unmonitored accommodation. Pushback has come from Airbnb and short stay advocates (who often have their finger in the pie as hosts) arguing on the tourism and economic benefits, often with studies commissioned by short stay companies.
Read the full “The Omnipotent Airbnb Risk” post.
This represents general information only. Before making any financial or investment decisions, I suggest you consult a financial adviser to take into account your personal investment objectives, financial situation and individual needs. Anyone looking to build a portfolio should seek financial advice to find out which strategy is right for them, if you are a high net worth investor looking financial advice then you should consider a financial adviser with high net worth experience, they can help you identify your goals and put in place a reliable strategy to pursue them.
