> There are thousands of cities and towns all over the world, where short term rentals – accelerated by AirBnB – has made it impossible for young workers to afford to live where they were born.
That has very little to do with short term rentals, and even less to do with AirBnB specifically. Much like "foreign investors", it's just a convenient scapegoat when the real problem is basic supply and demand: there simply isn't enough housing to go around.
> A normal worker today in the US or Europe could if they want afford to buy all top Apple devices or equivalent PC devices, as well as every paid app on the App store. That same normal worker in the US or Europe today can never afford to buy a home, unless he/she goes into lifelong debt, or gets help from family that owns real estate.
And yet Apple's annual revenue is about 30x AirBnB's, and the numbers are similar for profit. That should tell you something about how much of the device/app market Apple controls compared to how much of the housing market AirBnB controls.
I think it has a lot to do with short term rentals, and this is how it works: When a homeowner dies, usually the heirs would go live in that home or sell it on the open market. Maybe using that money to pay off another mortgage.
Today, the heirs will instead keep the inherited home, rent it out seasonally on AirBnB to earn a little money, keep any mortgage they have on the place they live, and reap the value increase of their AirBnB unit every year. That value increase can be used as collateral for many things. In the industrialized world, your yearly salary (value increase) is much higher from earning real estate and doing nothing, than it would be from working any skilled job. AirBnB is an important piece of that whole equation, because it makes it much easier for people to hold onto extra property instead of selling it to somebody who needs a place to live. There is no shortage of housing.
> And yet Apple's annual revenue is about 30x AirBnB's
This has nothing to do with it. Real estate prices and values are much more important in the daily life of people than any consumer product such as Apple. AirBnB does not own the properties, but if you add up the value of all properties listed on AirBnB, that amount would dwarf not only Apple, but the entire stock market.
> Today, the heirs will instead keep the inherited home, rent it out seasonally on AirBnB to earn a little money, keep any mortgage they have on the place they live, and reap the value increase of their AirBnB unit every year. That value increase can be used as collateral for many things.
Money is fungible, finance people can do this kind of transformation with anything and do, all the time. Ever heard of a company or rich individual doing a sale-and-leaseback transaction? That's the same thing in reverse.
> In the industrialized world, your yearly salary (value increase) is much higher from earning real estate and doing nothing... There is no shortage of housing.
On the contrary, the shortage of housing is the underlying reality that makes all the flashy transactions on top work. Why does the value of housing keep going up? Because demand is going up and supply is staying approximately constant, or even going down. Everything else is window dressing.
> if you add up the value of all properties listed on AirBnB, that amount would dwarf not only Apple, but the entire stock market.
Maybe, but those properties are listed on a bunch of AirBnB competitors at the same time. AirBnB has very little market power over them; if they try to hike up the rates or anything they'll lose their customers. The real estate market is important. AirBnB isn't.
That has very little to do with short term rentals, and even less to do with AirBnB specifically. Much like "foreign investors", it's just a convenient scapegoat when the real problem is basic supply and demand: there simply isn't enough housing to go around.
> A normal worker today in the US or Europe could if they want afford to buy all top Apple devices or equivalent PC devices, as well as every paid app on the App store. That same normal worker in the US or Europe today can never afford to buy a home, unless he/she goes into lifelong debt, or gets help from family that owns real estate.
And yet Apple's annual revenue is about 30x AirBnB's, and the numbers are similar for profit. That should tell you something about how much of the device/app market Apple controls compared to how much of the housing market AirBnB controls.