Cincinnati One Of Most Booked Cities On Airbnb, Report Says
Photo: George Becker, Pexels
Cincinnati’s Airbnb market appears to be booming, according to a recent report. But is it a good thing or a bad thing?
Financial publication MarketWatch reports through its partnership with The escape house this Cincinnati is one of the five most booked Airbnb markets in the United States, according to recent data. “The tendency of travelers to choose to visit small towns and rural areas has created an abundance of opportunities for those interested in accommodation; from March 2020 to March 2021, the new hosts with a single announcement made more than $ 1.2 billion, estimates Airbnb, ”estimates Danielle. Hyams writes.
The escape house says Cincinnati’s bookings are due to “the area’s booming street art scene, dozens of craft breweries, and professional and college sports teams,” as well as the Jungle Jim International Market. The report highlights a five-bed, three-bath house in Over-the-Rhine that sells for $ 849,000 but reportedly earns $ 9,000 per month from Airbnb rentals.
Other “unexpected” cities that are doing well in the Airbnb sector include Kansas City, Missouri; Eugene, Oregon; Minneapolis, Minnesota; and Lincoln, Nebraska.
The piece of MarketWatch/The escape house refers to remarks Airbnb CEO Brian Chesky made in October at the Skift Global Forum, a conference focused on growing companies in the travel industry. In a conversation with Skift founder Rafat Ali, Chesky claimed that the COVID-19 pandemic is showing workers they can work from anywhere, no longer needing to be in a center. city or even in an office to be productive.
“Before the pandemic, most people in your city felt like they had to live in your city to work. Now they’re like customers… and you have to compete with them like every other city. They have it. choice, and that’s the main difference now. Mayors should see their citizens as clients who have a choice, ” The escape house Chesky reports as saying.
Chesky also reportedly said that many Airbnb users visit the site without a destination in mind, frequently spending vacations in smaller towns. He added that Airbnb can help inspire those choices by pushing locations with abundant housing supply up front.
But, of course, every action has a reaction.
The “Airbnb effect” is to some extent remarkably similar to gentrification in that it slowly increases the value of an area to the detriment of native residents, many of whom are evicted due to financial constraints.
Cities, especially the more popular ones, seem to be doing the worst. In large cities like Amsterdam, Barcelona, Edinburgh and Los Angeles, studies of the “Airbnb effect” have shown that overtourism facilitated by platforms like Airbnb has a negative impact on house prices and communities.
Housing in Cincinnati is also seeing a squeeze, thanks to the perfect storm of increased vacation rentals, the pandemic, gentrification, skyrocketing prices for single-family homes and an increase in renters looking of accommodation. Listing companies like Zillow have also been buy houses to get into the game of selling, with varying degrees of success.
For much of 2021, local monthly rents – as in permanent accommodation, not vacation rentals – have increased year-over-year. In June, the overall median rent in Cincinnati was $ 1,200 per month, an increase of 17% from the previous year. Rents rose for studios, one-bedroom apartments and two-bedroom apartments in Cincinnati in June, according to a report from Realtor.com. At that time, residents of Greater Cincinnati were paying $ 1,025 per month for a studio, $ 1,155 for a bedroom, and $ 1,275 for two bedrooms. This equates to a 2.5% increase in studios over the past year, singles by 12.7% and doubles by 21.4%.
According to Airdna, which tracks data from home rental companies like Airbnb and Vrbo, Cincinnati vacation rentals grew from 1,067 in Q3 2018 to 1,383 in Q3 2021. There are 1150 active rentals as of November 1, despite the ongoing legal battles that cities and states wage against vacation rental companies.
One and two bedroom units make up the majority of vacation rentals in Cincinnati. The average rate was $ 115 a night in January, compared to $ 152 in July.
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