Airbnb says inflation attracts new hosts looking for extra income
To earn extra income during the economic downturnmore and more people are becoming hosts on Airbnb.
The California-based roommate company reported Wednesday that more people began listing their homes on the platform for the first time during the second fiscal quarter, the three-month period ending June 30, as the inflation was rising at its fastest pace in 40 years.
“Inflation has increased around the world. At the same time, more people have started to host, especially in major tourist destination countries with high inflation growth,” Airbnb said.
The company realized that in top Airbnb markets where there was, on average, a 1% increase in the rate of inflation, there was an increase of almost 4% in the number of new hosts in this country during the second quarter.
In the USA, inflation jumped 8.3% in April before hitting a new four-decade high in May and June, up 8.6% and 9.1%, respectively. During these months, the number of new hosts increased by more than 50% compared to a year ago, according to Airbnb.
In a recent survey, nearly half of US web hosts admitted that one of the reasons they host is to make money to offset rising prices.
However, with the rising cost of ownership, new hosts may also be hosting more frequently, not only to increase their earning potential but also to cover higher mortgage rates, according to Airbnb.
Mortgage Buyer Freddie Mac reported that the 30-year fixed-rate mortgage averaged 4.99% as of August 4. Although this is down from the 5.30% reported the previous week, it is still well above the rate of a year ago today.
This time last year, the 30-year fixed rate mortgage rate average of 2.77%.
Even as costs rise, Airbnb said Wednesday that “the ability to earn is still strong.”
In 2021, the typical US host earned over $13,800, an 85% increase from 2019. Globally, new hosts earned over $1.8 billion that year , up 30% from the pre-pandemic period.