Airbnb vs Rent: City of Los Angeles

August 30, 2016

NEW FINDINGS SHOW THE IMPACT THAT EVEN A LOW “CAP” ON HOMESHARING DAYS HAS ON LOS ANGELES NEIGHBORHOODS AND AFFORDABLE HOUSING

Incentive Data Shows that Landlords Make More Money Renting Short-term for as Few as 60 Days Per Year

Los Angeles, CA: Today, Inside Airbnb’s Murray Cox released data showing that affordable housing will be lost if short-term rentals are permitted for as few as 60-days per year in some Los Angeles neighborhoods. Los Angeles Alliance for a New Economy (LAANE), analyzed the data and found that across all Los Angeles neighborhoods it takes an average of just 83 nights per year to earn more on Airbnb than can be earned in a whole year of renting to a long-term renter.

Airbnb vs Rent: City of Los Angeles - Data Preview

"Most people following the debate around regulating this industry don't understand the impact that the 'cap' on days per year has on the overall housing market in Los Angeles," say Roy Samaan, LAANE Research & Policy Analyst. "For the overwhelming majority of neighborhoods across LA, a 90 day cap offers a weak incentive for landlords to rent out their units on Airbnb. However, the currently-proposed 180 day limit offers a substantial financial incentive to rent out units on Airbnb instead of long-term tenants."

Regulators all over the world are currently working on ways to control Airbnb and other short-term rental platforms. The issue of "caps" on days has been considered and implemented in a number of cities. Many of these cities have found the caps impossible to measure and enforce, leading to complete bans on short-term-rental activities.

"Protecting affordable housing has been the goal of regulations in a number of cities," said Murray Cox, founder of Inside Airbnb.

"Again and again regulations have failed. New York and San Francisco, as examples, have revised their ordinances because enforcement is impossible and compliance rates are low. Based on my incentive analysis of existing Airbnb’s operating illegally in Los Angeles, it’s clear that landlords will be economically motivated to turn more affordable apartments and homes into short-term rentals."

"It’s vital that the City of Los Angeles adopts short-term rental ordinances that are both enforceable and truly protect affordable housing - and that means a complete ban on entire home rentals, or a low cap with data sharing and platform accountability."

Data for a number of Los Angeles neighborhoods appears below. On average in Los Angeles, it takes 83 nights per year to earn more on Airbnb than can be earned in a whole year of renting to a long-term renter.

Zip Code

Neighborhood

Council District

Number of Nights Needed to Earn More on Airbnb than
Renting Long Term

90291

Venice

11

83

90028

Hollywood/Thai Town

13

86

90026

Silver Lake/Echo Park

13

79

90027

Griffith Park/Los Feliz

4 & 13

79

90029

Downtown Los Angeles

14

88

90063

Boyle Hts/City Terrace

14

84

90004

Koreatown

10 & 4

78

91602

North Hollywood/ Toluca Lake

2

68

90048

Beverly Grove

5

76

90731

San Pedro

15

91

91405

Van Nuys

6

80

90065

Cypress Park

1

86

91364

Woodland Hills

3

75

90008

Baldwin Hills/Crenshaw

10

84

90018

Jefferson Park

8

87

90011

South Los Angeles

9

79

Sources:

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Get the Data

Download a PDF with the full incentive analysis including all Zipcodes of the City of Los Angeles: airbnb-vs-rent-city-of-la.pdf

To access the Inside Airbnb data behind the analysis, download it here for your own analysis.