Airbnb, which has already been feeling the squeeze in cities like New York, San Francisco and Seattle, are now facing further crackdowns in two additional major tourist destinations: Las Vegas […]
A tight housing market has pushed prices out of reach for a large chunk of would-be buyers across the U.S., forcing millions into an apartment market that digs deep into […]
Airbnb, which has already been feeling the squeeze in cities like New York, San Francisco and Seattle, are now facing further crackdowns in two additional major tourist destinations: Las Vegas and Hawaii.
Las Vegas property owners interested in renting out their properties for brief periods will have to comply with new rules passed Wednesday meant to crack down on a booming short-term rental industry that has raised concerns among some residents and local officials. Owners now need a special use permit, proof of liability insurance for US$500,000 and letter-sized placards outside the properties with contact information and maximum allowed occupancy.
The new requirements were approved as complaints over raucous parties at short-term rentals have mounted over the years and following more than three hours of debate among city officials and comments from dozens of residents.
City officials were split on the ordinance. While some council members strongly favor the regulations, others, including the mayor, questioned whether they will truly put an end to the use of rentals as “party houses” since enforcement of the existing regulations has not been efficient.
“Everything I’m hearing is exactly the same. It’s party houses and party houses and party houses, and none of us wants them in our neighborhood,” Mayor Carolyn Goodman said. “But this isn’t going to do anything, in my opinion, to stop the party houses.”
Figures released in February by the San Francisco-based home-sharing service Airbnb show people in Las Vegas who listed their homes through the company hosted more than a quarter of a million people last year and earned $35.5 million.
Las Vegas drew a record number of visitors for a third straight year in 2016, attracting almost 43 million tourists. Unincorporated Clark County – which includes properties near the Las Vegas Strip – does not allow short-term rentals in residential areas.
Short-term rentals were already required to pass a safety and minimum property standard inspection, obtain a business license and pay an annual $500 permit fee. Short-term rentals may not be within 660 feet of each other as measured from their property lines.
The new special-use permit carries a fee of $1,030. It also requires units with more than 5 bedrooms to have one additional parking spot for every two additional bedrooms.
Airbnb spokeswoman Jasmine Mora in a statement said the council’s decision “is a step in the wrong direction that threatens an important economic lifeline for thousands of Las Vegas families.”
Meanwhile, officials on the Hawaii island of Oahu are looking for ways to cut down on subleasing as its popularity rises with the advent of businesses such as Airbnb.
The Honolulu Star-Advertiser reports that renters have been cashing in on the profitability of the island’s vacation rental market through online rental sites. But Honolulu officials are working on a way to curb the trend by strengthening the city’s subleasing enforcement strategy.
Hawaii real estate analyst Stephany Sofos says she once had a tenant who was renting from her for $1,500 per month, but was subleasing for $1,000 per week through Craigslist and Airbnb.
Elizabeth Churchill, owner of tourism consultancy Churchill Group LLC, called the practice “brilliant” for tenants, but says those who are making money should follow regulations and pay their share.
Airbnb has run into regulatory battles in some cities, including New York and San Francisco. In some cities, local officials have complained that the boom in short-term rentals, led by Airbnb – which boasts millions of rental listings around the world – is reducing long-term housing for residents.
In May, Seattle officials and Airbnb reached a deal in a lawsuit stemming from the city’s efforts to prevent the website from including housing units that violate city restrictions on who can list properties and for how long. Under the settlement, residents have to provide their registration number to list a rental on the website.
With file from The Associated Press via Travel Week
A tight housing market has pushed prices out of reach for a large chunk of would-be buyers across the U.S., forcing millions into an apartment market that digs deep into monthly paychecks for rent, especially in high-cost markets like Miami.
Nearly 39 million U.S. residents live in homes they can’t afford, according to a national housing report released Friday by Harvard University. The findings point to a growing concern over housing affordability and shines a glaring light on Miami-Dade County’s pricey market.
Miami was one of 11 large metropolitan areas where more than 40 percent of households were cost-burdened, meaning over 30 percent of their income was gobbled up by housing costs.
“While the recovery in home prices reflects a welcome pickup in demand, it is also being driven by very tight supply,” said Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies. “Any excess housing that may have been built during the boom years has been absorbed, and a stronger supply response is going to be needed to keep pace with demand — particularly for moderately priced homes.”
Apartment dwellers have it worse. Among Miami renters alone, 62 percent were considered cost-burdened while 35 percent spent more than half their income on rent.
The report also highlighted Daytona Beach, where 57 percent of renters spent over a third of their income on rent in 2016. The least affordable cities were not ranked.
The affordability struggle is a function of rising demand for housing combined with limited — and costly — supply.
Fewer residential units were built in the U.S. over the past decade than in any 10-year period since the 1960s. A large portion of the new homes tend to cater to higher-end purchasers, not first-time homebuyers.
“Construction of smaller starter homes is particularly low,” the report said.
The for-sale inventory hit a record low at the end of 2016, further squeezing supply of homes on the market. The result? More and more people are renting rather than buying. The national rental vacancy rate dropped to its lowest level in three decades last year.
However, most apartment units built are considered luxury. Twelve of the 20 rental developments with 50 or more units built in Miami-Dade in 2015 were high-end with the average rent swaying near $2,100, according to a study by RentCafe.
The total number of units renting for less than $800 in Miami declined by about 20,000 to 131,000 from 2005 to 2015. The number of apartments renting for over $2,400 more than doubled since then to 42,000.
The U.S. housing market hit a significant milestone last year when home prices reached their pre-recession peak. This helped reduce the number of homeowners underwater on their mortgages to 3.2 million from 12 million in 2011.
While Miami-Dade home prices have risen 74 percent since 2000, they’re still below their peak. About 16 percent of homeowners remained underwater on their mortgages in 2016, more than double the national rate.
Carla Vianna, Daily Business Review
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The battle continues: Las Vegas & Hawaii crack down on Airbnb
UncategorizedAirbnb, which has already been feeling the squeeze in cities like New York, San Francisco and Seattle, are now facing further crackdowns in two additional major tourist destinations: Las Vegas […]
Miami-Dade Near Top Nationally in Struggle With Housing Affordability
UncategorizedA tight housing market has pushed prices out of reach for a large chunk of would-be buyers across the U.S., forcing millions into an apartment market that digs deep into […]