Real estate is generally a fast-paced market that is always changing and Rehabbing houses has become one of the biggest real estate trends in recent years, …

How is Airbnb changing real estate prices?

There are three answers: short-term, mid-term, long-term.

  1. Short-term – There is no impact. It isn’t being factored into the price of most properties, and is in reality a tiny drop in the bucket of the total real estate in any given location.
  2. Mid-term – Prices go up. People see the opportunity. See how some people are arbitraging low purchase price/long-term rental rates into higher income short-term rentals on Airbnb, and adjust the price accordingly.
  3. Long-term – Back to where they started. Based on the increased prices and demand in the mid-term, there is more financing and more properties are built, saturating the market, bringing prices back down, and creating more affordable housing for people who want to live in the relevant areas.