Should Airbnbs Be Banned In Tourist Destinations

The temptation to ban short-term rentals is strong. But cities would do better to step up regulation.

The Predicament

Talk to any resident of a world city popular with visitors, and two complaints inevitably come up: Rents are too high, and there are too many tourists.

It’s tempting (and, data suggest, not unjustified) to place some of the blame for these woes on Airbnb Inc., Vrbo and other websites that facilitate short-term rentals. Critics accuse them of reducing the supply of available homes and saturating popular neighborhoods with wild partygoers. Shops catering to these visitors end up elbowing out other smaller businesses, making daily life even harder for locals.

In response, many cities have already introduced restrictions on short-term rentals, with some moving toward total bans. Barcelona requires property owners to apply for a tourist license for rentals of fewer than 31 days. Earlier this year, authorities there announced they would stop issuing licenses and not renew existing ones until after November 2028. Others are following suit: In September, residents in Budapest’s sixth district narrowly voted in favor of a total ban that would take effect in 2026.

But bans also penalize city residents and visitors, including short-stay hosts conscientiously trying to follow rules and be good neighbors and guests who mind their manners. Is there a compromise that enshrines the ben­efits of short-term stays without driving up costs and frustrations for year-round residents?

The Case For

Because renting out homes by the day is often more profitable than by the month, Airbnb and its ilk are an irresistible draw for landlords. Critics say the proliferation of short-stay listings leaves prospective tenants chasing a dwindling number of long-term rentals, jacking up prices and pushing out those who can no longer afford them.

A 2018 study by New York City’s comptroller found that whenever the number of short-stay listings in a given area increased 1%, average rents in that neighborhood rose 1.6%. The spread of Airbnb and competitors, the study said, was responsible for 9.2% of all annual NYC rent increases from 2009 to 2016.

The Booming Short-Stay Market

To limit this impact, cities ­including New York have placed restrictions on short-term stays. But enforcement is a challenge. A 2017 study of publicly available agreements found that Airbnb and other platforms rarely provided exact addresses for dwellings to cities seeking to monitor locations. Even in cases where rule-­breaking can be proven, hosts often go unpunished. According to a 2022 study, the city of Los Angeles fined or sent warning letters to only a third of the illegal listings detectable within the city that year.

City governments might be more tolerant of short-term rentals if there were a clear economic case. But studies cited by the Economic Policy Institute found they jeopardize revenue flowing into municipal coffers because the recording and implementing of tax obligations from short-stay hosts are less comprehensive than for hotels, partly because some local agreements cede responsibility in this area to the short-stay platforms themselves.

There are also concerns that short-term rentals leave travelers more exposed to scams and other types of harm, compared with hotel stays. Then there’s the nuisance factor: Barcelona’s Airbnb ban comes after widespread public protest in the city against antisocial behavior from tourists, notably late-night noise from tenants of short-stay lettings. Add it all up, and it’s no surprise that many city leaders are contemplating wholesale bans, rather than more stringent regulations.

The Case Against

Airbnb and its competitors may be unfairly taking heat for housing crises that are largely not of their own making. When a country such as the UK would need to build another city the size of London to satisfy its current housing needs, it’s clearly insufficient home-building, rather than tourism trends, that’s to blame. There are also tentative signs that curbs on short-term stays may not be having the desired effect on easing long-term rental costs—and not just because of a lack of enforcement. In September 2023, New York City banned the renting of entire units for fewer than 30 days. (Spare rooms within homes permanently occupied by hosts were exempted from the rule.) One year on, many apartments previously offered for short stays have simply shifted to medium-length stays of more than 30 days, a market that’s even less regulated, while the modest rent decreases observed since then have been attributed to other factors.

“As we have seen in New York City, short-term rental bans do not alleviate housing challenges,” Theo Yedinsky, Airbnb’s vice president for public policy, said in a statement, “only benefitting large hotel chains that rapidly increase their rates. Airbnb has always welcomed reasonable regulations that balance the needs of communities with the ability of residents to earn additional income.”

It’s also important to note that not all Airbnb listings are suitable, or even viable, for full-time rental. Beach or winter sports resorts, for example, commonly have apartment buildings that were always intended as seasonal housing. Additionally, even if most vacation apartments are run by hosts with multiple listings, comprehensive bans penalize ­single-listing hosts who rely on the platforms to supplement their income.

The Common Ground

Although no city appears to have cracked the code on controlling short-term stays, most could do a better job of regulating them. Making sure hosts register their dwellings through a licensing system can make for a safer service, where tax rev­enue is also easier to collect.

Some city authorities say that for full enforcement of existing rules, they would need access to a more robust database that allows cities to click on a short-stay listing, trace it to a specific address and owner, then see how much it has been occupied across all platforms.

Airbnb has been working more closely with cities to address these concerns, moving in the direction of greater transparency. For instance, the company introduced the Airbnb City Portal in 2020, which makes it easier to check listings against licenses.

Airbnb is also involved in projects such as the Airbnb Housing Council that promote affordable housing in urban communities. “We have successfully worked with governments around the world to enforce proportionate local STR regulations,” Yedinsky said in his statement, “and believe cities should address the needs of their individual neighborhoods prescriptively as a more effective way to regulate.”

There are city leaders who say that Airbnb has been a benefit and that current restrictions are working. Rui Moreira, mayor of Porto, Portugal’s second-­biggest city and a popular tourist destination, says recent constraints placed on the number of Airbnbs permitted in its most popular neighborhoods have proved effective, encouraging hosted apartments to spread out from the city core. That’s helped spur the economic revival of run-down areas that might otherwise struggle to find funding, he says.

Source: Bloomberg

Hurricane-proof skyscrapers vulnerable to less powerful windstorms

Tall buildings fare poorly in derechos*, say experts, raising questions over their resilience as climate crisis worsens

Skyscrapers built to withstand major hurricanes fare much more poorly in less powerful windstorms known as derechos, researchers have found, raising questions for cities worldwide over the resilience of tall buildings as the climate emergency worsens.

A team from Florida International University’s (FIU) civil and environmental engineering department studied the unexpectedly severe damage caused to buildings in Houston, a city with 50 skyscrapers of 492ft (150 metres) or more, during the 16 May 2024 derecho.

They found that the storm’s long line of fast-moving thunderstorms spawned “downburst” winds peaking at 90mph that bounced off the buildings and inflicted considerable damage, especially to the facades of structures designed to withstand stronger, category 4 hurricane-force wind speeds of up to 156mph.

The same buildings, by contrast, were virtually unscathed during category 1 Hurricane Beryl in July, when sustained wind speeds were similar to those of the earlier derecho, but without their more erratic, up and down nature, or explosive bursts at or near ground level.

The results were published on Friday by the peer-reviewed science website Frontiers in Built Environment. The FIU study focused on five of Houston’s tallest and most iconic buildings but, the researchers say, it could have profound implications for cities elsewhere as the climate crisis and soaring ocean temperatures fuel stronger and more frequent severe weather events, including hurricanes, fires and floods.

They stress that the wind speeds in a derecho, which can vary from far below major hurricane strength to match or exceed it, is not as consequential as how that wind is dispersed. A “unique characteristic” of a downburst, they say, is how the wind blows outwards in all directions when it reaches the ground.

“When strong winds move through a city, they can bounce due to interference between tall buildings. This increases pressure on walls and windows, making damage more severe than if the buildings were isolated,” said Omar Metwally, an FIU doctoral student and the report’s co-author.

“On top of this, downbursts create intense, localized forces which can exceed typical design values for hurricanes, especially on the lower floors of tall buildings.”

Metwally called it a “one-two punch effect” that the FIU team predicts will become an even worse problem for states around the Gulf of Mexico, where a 0.34F rise per decade over the last half-century is twice the rate of oceans globally.

Amal Elawady, professor of structural and wind engineering at FIU, and the team’s leader, said the research would also have relevance in other countries, where regulations for building design and wind loads are often calculated primarily with hurricane categories in mind.

“It’s not only a US issue. Downbursts are also very common and very frequent in Europe and worldwide,” she said.

“How a building responds to a thunderstorm is different from the way they respond to hurricanes, so it’s something that needs to be considered, not just for the buildings, but also for the components, like the cladding, the envelope of the building.”

Metwally said he hoped the research would lead to a re-evaluation of regulations and design of future tall buildings, as well as urban planning, as officials became more aware of the complexity and potential negative outcomes of downburst events.

The FIU analysis focused on Houston’s Chevron Building Auditorium, CenterPoint Energy Plaza, El Paso Energy Building, RRI Energy Plaza, and Wedge International Tower, all built between 1962 and 2003 and between 518ft and 742ft tall. Construction standards require them to withstand winds up to 67 metres per second, or category 4 hurricane strength.

During last year’s derecho, facade panels were dislodged and cladding damaged, especially on corners and lower floors. Broken glass and other hazardous debris fell on to downtown streets and the aftermath brought significant socio-economic impacts including traffic disruptions, businesses temporarily closing, and a huge bill for clean-up and repairs.

The FIU team ran simulations of the downbursts and hurricanes on modeled replicas at the university’s Wall of Wind experimental facility in Miami, funded by the National Science Foundation. Suction on the sides of buildings was substantially more evident during downburst events, explaining the ripping away of cladding and broken windows that did not occur during the hurricane.

“It’s not likely that a tall building will fail under wind, either hurricane or downburst,” Elawady said.

“But it causes damage, debris and water intrusion, and once you have a broken window you have a change in the internal pressure in the building and then the total force on the building is different,” she said.

Ongoing and future FIU research will look at the effects of downbursts on transmission lines, lighting poles, telecommunication towers and low-rise buildings as well as more studies on skyscrapers.

“It’s a very complex problem that needs to be thoroughly studied, and we’re trying our best to better understand it,” Elawady said.

*A derecho (pronounced similar to "deh-REY-cho") is a widespread, long-lived wind storm that is associated with a band of rapidly moving showers or thunderstorms

Source: The Guardian

Developing a new metric for inclusive cities

Four urban personas: developing a new metric for inclusive cities

A study from Cushman & Wakefield sets a global benchmark for how inclusive cities really are across Europe, the Middle East, Africa and Asia Pacific

As the urgency to develop more sustainable cities across the world heightens, Cushman & Wakefield has embarked on a study to measure the social, economic, environmental and spatial inclusiveness of almost 80 global cities across the EMEA and APAC regions.

The global real estate firm has developed the ‘Inclusive Cities Barometer’ to quantify the social value of our cities by mapping, tracking and measuring how inclusive our cities really are.

Across the dimensions

The study measures the inclusivity of 44 cities in EMEA and 35 in APAC based on 9,000 data points, and 110 metrics across four dimensions and 12 sub-dimensions. These dimensions include:

Social inclusion – measuring 58 variables including health and wellbeing, tolerance, respect and personal freedom, education, and population and density growth.

Economic inclusion – a measure of 22 variables including employment, economic vitality and growth, and innovation.

Spatial inclusion – a measure of 25 variables including housing and property, security, safety and social infrastructure, accessibility and urban attractiveness.

Environmental inclusion – a measure of five variables including climate, pollution, and the United Nations SDG score.

The cities represented in the research are at varying stages of their journey towards more inclusive and vibrant urban environments. Instead of ranking them by performance, the Inclusive Cities Barometer measures progress relative to starting points, highlighting an actionable roadmap for improvement.

Cushman & Wakefield defines inclusive cities as ‘urban environments that prioritize diversity, equity, and accessibility for all residents, regardless of their background, identity or socio-economic status.’

The four city personas

The cities were categorized into personas representing different stages of their journey towards developing inclusive urban environments, reflecting varying degrees of maturity.

Mature urban centres: These are cities with a longstanding commitment to social inclusion, that prioritize the needs of all citizens. They focus on equal distribution of wealth alongside strong but balanced economic growth. In EMEA this includes four Nordic capital cities, as well as Amsterdam and Rotterdam in the Netherlands, and Edinburgh and Glasgow in Scotland. In APAC, Australian cities such as Brisbane, Perth, Sydney and Melbourne sit firmly in this category.

Social drivers: These cities are demonstrating strong rates of social inclusion across many of the dimensions, although not as mature in their journey to reduce wealth and lifestyle inequity. Cities in this category include global economic powerhouses such as London, Paris, Brussels, Berlin, Tokyo, Singapore and Seoul.

Rapid risers: Rapid risers are cities previously less active on equitable economic and social development that are now rapidly advancing social inclusion initiatives. This includes cities such as Athens, Budapest, Milan and Warsaw in Europe, and Chinese cities such as Beijing, Shenzhen and Shanghai, as well as Hong Kong.

Emergers: Emergers are at the beginning of their journey to increase rates of inclusivity throughout, but with strong ambitions. In EMEA, these cities are predominantly based in the Middle East and Africa and include Abu Dhabi, Cairo, Istanbul, Lagos, and Johannesburg. In APAC, these cities are located in South and South East Asia amongst whom are Bangkok, Bengaluru, Chennai, Ho Chi Minh City, Kuala Lumpur and Mumbai.

The path forward

As governments chart a course towards building cities that account for the needs of all citizens, the report argues that alongside governance, the real estate and construction sectors have a critical role to play in the future of the urban environment. They can influence the development, management, occupation and strategic planning of cities – thus spreading the burden of responsibility for developing sustainable, inclusive cities more evenly.

In recognizing that the scale and complexity of delivering inclusive cities can be overwhelming, the report urges that the real estate industry takes a more straight-forward approach – to recognize inclusiveness as an asset, not a cost. The report sets out a checklist for developers, investors and corporate occupiers to consider when developing inclusive cities.

The checklist asks developers and investors to consider working with local resident groups to ensure than the consequences of the development on the wider community is co-managed. They should also create destination places that inspire and represent the city’s identity and respond to the needs of the community.

‘Consider employee needs outside the office, factoring in leisure activities ‘

For corporate occupiers, they should consider employee needs outside the office, factoring in leisure activities such as restaurants, entertainment and retail. The building itself should promote health and wellbeing, and offer a diverse range of settings so everyone can find a space they feel comfortable working in.

The report concludes with statement that ‘engaging in socially responsible real estate practices not only enhances community social value but also fosters long-term economic success by building more resilient and vibrant neighborhoods’.

Access the Inclusive Cities Barometer from Cushman & Wakefield here.

Source: Worktechacademy