Because real estate prices are highly location-specific. People looking to buy a home in a nice, safe neighbourhood with a school in walking distance are forced to compete with investors buying houses and turning them into Airbnbs. As the article says, 30 per cent of home buyers are investors looking to grow their portfolio, not people looking for a place to live and raise a family. If those investors put their money into the stock market instead then that would free up the limited resource of homes near schools, causing prices to fall and making it more affordable to start a family.
Imagine what life would be like if we let billionaires buy up all the lakes, rivers, and other freshwater reservoirs. Water prices would shoot through the roof and we'd all be forced to pay the "water barons" whatever they decide to charge. It would be a dystopian nightmare and absolutely toxic to society. If you're curious, this is the premise of the classic sci-fi book Dune.
I spoke to the owners of the last 3 Airbnbs I stayed in. All of them were converted from long-term rentals. The landlords in all 3 cite much higher profits from Airbnb as the reason for conversion.
That's fine, but isn't evidence that short-term rentals dominate the rental housing market. They don't. Short-term rentals make up less than 1% of the housing stock.
Obviously, the housing that short-term rentals use has to come from the housing stock somehow, so it's not interesting to point out that Airbnb's cannibalize the long-term rental market.
(Over the medium-long term this is a problem that'll be solved by a combination of more construction, which is desperately needed anyways, and ordinances regulating Airbnbs, like NYC just passed.)
Imagine what life would be like if we let billionaires buy up all the lakes, rivers, and other freshwater reservoirs. Water prices would shoot through the roof and we'd all be forced to pay the "water barons" whatever they decide to charge. It would be a dystopian nightmare and absolutely toxic to society. If you're curious, this is the premise of the classic sci-fi book Dune.