Platform Failures – How Short-Term Rental Platforms Like Airbnb Fail Cities

The uneven relationship of short-term rental platforms like Airbnb with cities. A kind tourism that extracts local resources for the economic benefits of few, contributes to social exclusion of many.

A report written by Murray Cox, the data activist founder of Inside Airbnb, and Kenneth Haar, of Corporate Europe Observatory, provides insights on how short-term rental platforms have become one of the biggest exclusionary drivers in large tourist cities.

Report’s Highlights. Platforms refuse to cooperate with cities, fail to self-regulate and to comply with regulations to protect affordable housing for residents.  The report also provides insight on what the forthcoming Digital Service Act should deliver to support the legal capacity of cities to protect housing.

How Airbnb fails cities. In Amsterdam, Airbnb withdrew the ability to enforce a 60 days cap after the city tightened regulations; in Barcelona, Airbnb provides data but the 60-70% of the addresses of property on offer are missing or incorrect; in Berlin, the 80% of Airbnb listings are still illegal and the platforms refuse to provide data; in Paris, the 60% of Airbnb listings are illegal; 85% active listings are illegal; in Vienna, Airbnb refuses to remove listings offering hospitality in social housing.

What unequal consequences. Concretely, the report shows how many apartments short-term rental practices ended up extracting from the cities’ housing market and which effects that had on access to housing. In in some neighbourhoods of Amsterdam, this amounts to 1 out of 9 units rented on Airbnb; in Paris, 15,000-25,000 apartments; in Prague, 15.000 apartments; and in New York between 20,000 and 25,000. In Barcelona, the rise of Airbnb in areas of high intensity have determined a 7% increase of rents and a 19% increase of and property prices.

What could cities do to enforce regulations. 1) Mandatory Registration System; 2) Platform Accountability, 3) Platform Data Disclosure.

What is the best scenario for the new EU’s Digital Service Act. Exclude the digital platforms like Airbnb or Über from this act following decisions by the European Court of Justice in December 2017.

How could the Digital Service Act favour the right to the city. 1) Enforce the cession of disaggregated data to planning authorities; 2) Obligation to provide valid and certified data; 3) Acceptance of authorisation schemes for both hosts and platforms; 4) Full cooperation on the sanctioning of illegal listings; 5) Full liability where platforms operate. 6) No obstruction from the Commission in urban regulation of platform economy when it comes to protect fairly access to urban assets, like for instance housing.

Download the full report HERE.

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