The sharing economy is the future, isn’t it. Uber Pool, Airbnb, Deliveroo, Borrow My Doggy – they’ve all revolutionised the way we travel, holiday, eat and relax. Millennials (young people) have been at the forefront of this revolution in purchasing, early adopters that we are.
Convenient as they might be, however, there is an underlying and often ignored truth about all of the apps mentioned above (perhaps with the exception of Borrow My Doggy). While we benefit from them, because of convenience and low cost, every time we use one we’re often paying a higher and hidden price.
There’s much to be said about this in relation to Uber and Deliveroo – zero hours contracts, low pay and safety, which is of particular concern for women consumers and operators. For now, let’s focus on Airbnb.
Airbnb has revolutionised travel. It’s been a complete game changer. It has allowed us to stay in other peoples’ homes when we travel which are cheaper than hotels. It allows you to save money by doing a food shop while you’re away instead of eating out, it feels more personal and you can pick exactly which area of your destination you’d like to stay in.
However, the effect Airbnb has on property markets is a high price to pay for cheap holidays and convenient travelling. Therein lies the great irony of Airbnb and the revolutionary sharing economy: it might be millennials who use it the most, who seek out cheap accommodation and see that hotels are overpriced but it’s also millennials who are the least likely to own a home and most likely to be on the sharp end of increasing rental costs. Those who profit from Airbnb are either homeowners or landlords. This sounds like a familiar story doesn’t it?
In New York a study has been conducted on the impact of Airbnb rentals. It has found that more than 8,000 vacant apartments which could be rented out in the city are actually being taken off the market because of Airbnb.
The report, Short Changing New York: The Impact of Airbnb on New York City’s Housing, found that at least 8,000 listings could be used for people to live in; instead they are effectively being held as hotel rooms.
In New York there is actually a law which is supposed to prevent people from renting a property out for less than 30 days unless they are present at the time. The report found that more than 55 per cent of listings on Airbnb didn’t comply with this. They also concluded that it was reducing available housing in the city by 10%.
Closer to home, in Berlin a ban has already been imposed. A court in the city imposed a ban on short-term rentals in May this year. Berliners who rent out more than 50% of their apartment on a short-term basis without a permit from the city risk a fine of €100,000 .
It seems that commercialised home sharing is becoming an intensely politicised issue in other countries where space is at a premium. Meanwhile, at home here in Britain, the Chancellor, George Osborne announced in his March Budget that Airbnb hosts would get tax breaks.
We all want to use services that make our lives easier and, let's face it, we all want to pay as little as possible for those services. Perhaps the question we have to ask when we're booking an Airbnb, using an Uber or ordering via Deliveroo, though, is whether it's actually ourselves that we're short changing?
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This article originally appeared on The Debrief.