Technology

I must admit that I am biased in that regard, but still I believe blaming Airbnb is mostly a distraction. Even in the worst of the worst places like Barcelona they reach around 10% of rental properties. Usually it’s a few percent in touristy places and much less everywhere else. Is it good for renters? Of course not. But it’s not the biggest factor, by far.

Now if I look at the whole rental market in my country, Germany, what’s on Airbnb is just a drop in the bucket. And still people are struggling to pay rent, especially in the cities. Even in those places that nobody in their right mind would go as a tourist unless threatened with serious physical harm.

Rents here started increasing uncomfortably after rental properties owned by local governments were privatized for a quick buck. Those new, publicly traded companies quickly raised rents sharply, because of course they have to earn back what they paid for the properties, plus a nice payout to investors. For the last two decades they have continued raising rents, neglecting maintenance and bought each other until now we the biggest company alone has almost half a million rental units, in a country of 80 million people. Of course, they don’t own three houses in villages here and there, but whole blocks in cities, with local market shares of up to 25%. That is much more significant than a few percent that are lost to tourism.

And don’t get me started on cost of construction, the chronic lack of new buildings, empty real estate owned by speculators or money launderers,… or I might rant again 😉