Airbnb's success story stands out in stark contrast to the struggles of other startups. Unlike Zillow's disastrous attempt at house-flipping, Airbnb has flourished for over a decade. Their revenue skyrocketed, tripling from $3.3 billion to nearly $10 billion. Even more impressive, they flipped profitability, going from annual losses of $4-5 billion to earning the same staggering amount. Perhaps the strongest indicator of their dominance is their resilient stock price. Unlike the post-IPO crashes
Berlin did exactly that: You can rent out your apartment for IIRC 30 days a year, or while you’re also living there, if you want to rent out more you need a hotel license and tough luck getting one while there’s a housing shortage, least of all for a flat in a residential area.
But OTOH that’s all only taking the edge off there’s been decades of under-investment in social housing in Germany overall, and the little social housing that got built got built via attaching conditions to building permits for private investors, those apartments lose their social housing status after 20 or such years.
And it’s not like there aren’t companies who want to build, and build plenty – but they don’t because they can’t recoup costs, not in this market where every rich fuck who can afford rent already is living somewhere else: Building costs are too high. Some of that is building standards, permitting, etc, but the bulk of it is financing costs, that is, interest on loans for new construction is way too high. Getting at land is not always easy but there’s plenty of mechanisms such as municipalities having right of first refusal for any land sale (if they want to, that’s another topic). There’s really only one way out of this and it’s state coffers because the capital market certainly isn’t going to get less greedy.
Agree. Social housing has been one of the first areas to suffer from cuts everywhere. It is a problem on its own, which short term rental makes worse.
The problem is that building is basically an irreversible use of land. It’s only recently that we started seeing land as a commodity (few centuries) and with the current state of affairs, it’s insane to leave it as such. Soil is too precious and too scarce to let market inefficiencies waste it. We should really explore all options before we decide to simply build more, especially in Europe where the population growth is basically null.
The build more thing is in urban areas to accommodate urbanisation. Coming to think of it the 49 Euro ticket might actually reverse some of that because there’s tons of smaller towns, sometimes villages, with proper train connection to the next large city. Low prices drive usage which prompts higher train frequencies which, infrastructure permitting, takes even more pressure off the metropolitan housing market.
That said urbanisation isn’t in itself a bad thing – it makes a lot of sense for a lot of reasons to not have a gazillion tiny villages, it’d just be another form of sprawl. Here in SH, if every train station we do have had a small urban core around it surrounded by village structures in cargo bike distance and then long stretches of fields and nothing, that’d actually be quite nice. The state was very good at doing that in the Hamburg metropolitan area, focussing development on a couple of axes radiating out from Hamburg but it should become more of a general pattern.