Winter Olympics Airbnb Renters Earned $2 Million
Residents in South Korea who rented out their homes to 2018 Winter Olympics fans were on track to earn more than $2 million, reports CNBC. PyeongChang, a county in South Korea’s Gangwon Province, is home to the 2018 Winter Olympics as well as about 4,000 Airbnb short-term rental listings. Airbnb reported that more than 9,000 travelers were expected to stay in area Airbnb listings during the games.
Fans book three nights at $170 each
According to the article, the average Olympics fan booked three nights of accommodation, paying about $170 per night. The most expensive listing was said to be a $400-per-night stay in Gangwon Province. The average take for local residents was predicted to be around $260, totalling $2.1 million over the course of the events.
Controversy over Airbnb effect on rental supply
The article reports that controversy continues to surround the business model of Airbnb, which reportedly markets itself as a way for homeowners to make extra income. Critics have reportedly argued that Airbnb takes long-term rental units out of local rental markets.
According to the report, one New York City study claimed that between 7,000 and 13,500 units of housing stock were converted by owners from long-term rentals to more profitable Airbnb rentals between 2014 and 2017. The study claimed that rent in New York City climbed by 1.4 percent as a consequence.
However, the article notes that Airbnb has disputed the findings of the report, noting that the methodology looked at “available for rent” status, instead of crunching the data on actual booked nights and whether listings had been permanently removed from the long-term market.