The Airbnb Effect, Explained.

We all know and love the convenience and comfort that Airbnb offers, but it carries a lot of negative effects for the locals in the said area you are staying in. As traveling begins to ramp up again, it is important to step back and think about how you are affecting the locals when you are trying to live like a local.

Airbnb is an online market that connects travelers with residents who are willing to rent out their home, apartment, or even just a bedroom as an accommodation. Airbnb was created in 2007 when two hosts invited a few guests to their homes in San Francisco. Since 2007 it has grown to four million hosts and almost six billion listings worldwide.

This phenomenon called the ‘Airbnb’ effect is quite similar to the concept of gentrification. The value of an area increases pushing residents out causing housing shortages and rising rents. Additionally, this over-tourism can diminish the original charm that an area once had.

Putting yourself in a resident's shoes in a highly sought after area, how would it feel to have your landlord tell you that he can make more money if he puts your apartment on Airbnb that you have lived in for the past ten years? You’re displaced to the outskirts of your original hometown and now tourists are moving in and out of your apartment like a hotel. That situation just described to you has become a reality to millions of individuals across the world; places like Barcelona, Venice and Amsterdam are suffering the most from the Airbnb Effect.

We are not saying you do not deserve a vacation, but others' homes do not deserve to be taken from them because of your vacation. In order to slow the effects of Airbnb, many local governments are creating regulations.

According to a previous study reported by Harvard Business Review, Airbnb is responsible for about 20% of the yearly average increase in U.S. rents. Cities are beginning to push back. New York City has created a law that states no individual is permitted to rent out their house or apartment for less than thirty days. Berlin and Portland have enforced restrictions against Airbnb rentals by requiring permits if landlords want to rent out more than half of their residence.

Airbnb’s mission was not to increase gentrification. Their intentions were to connect individuals throughout the world and ease the means of travel accommodations. The government is beginning to make a change to end the Airbnb Effect, and landlords and travelers must do the same.

Photo courtesy of Chesnot by Getty Images

The Airbnb Effect is outlining many of the societal problems the world is dealing with today. Next time you begin to browse Airbnb or other websites like VRBO, think critically about how your vacation is adding to the cycle of gentrification.