The proliferation of applications for the short term leaseWhat Airbnb, has been devastating; but, although this growth benefits property owners, it has also altered the real estate market in large cities, which is why the governments of various cities are making efforts to regulate the impact, especially on the right to housing.
In 2019, a study conducted by researchers from the University of California Los Angeles and the University of Southern California revealed that when the supply of airbnb spaces increases 1% in an area, there is a 0.018% increase in rental prices and a 0.026% increase in home values.
“Although these effects may seem harmless, it is necessary to consider that the average annual growth of the platform is around 44%”, the researchers noted at the time.
Given the accelerated expansion of the company and its reach in the real-estate marketin November 2022, the European Commission launched a proposal to increase transparency in the rental of short-term accommodation.
The proposed rules seek data sharing, the prevention of illegal advertisements, as well as transparency in the identification and activity of the hosts; which, in theory, will serve as the basis for creating local policies.
They ask for legislation in the CDMX
Given the controversy unleashed by an agreement between Airbnb and the government of Mexico City, whose objective is to trigger the demand for short-stay accommodation by digital nomads, the head of government, Claudia Sheinbaum, reported that advice was requested from the authorities of Barcelona, Spain, to regulate rental platforms.
The Planning Institute of the capital is in charge of supervising the process; However, Armando Rosales, president of the Mexican Association of Urban Planners in Mexico City, questioned whether he has the adequate capacity to carry out such work.
“The Planning Institute is small, with little technical capacity and reduced staff, it is very worrying because, legally, it should not be responsible,” said the specialist.
On the other hand, he stated that an alliance like the one that was carried out with Airbnb harms the legal certainty of the city’s inhabitants and violates the right to adequate housing.
“We cannot deny the facilities that these platforms have, but the authorities should enter without fear of regulation, not through a subscription agreement, but with a legal framework,” said Rosales.
In this sense, he explained, the city Congress must create a specific law for rental issues or include a chapter in the Housing Law for short-term platforms.
“A few months ago, three Americans died from carbon monoxide leaks in a Airbnb. It’s very serious. These houses function as commercial establishments, they have to be monitored and regulated as such. They must pay taxes and comply with risk programs. We are not against the existence of Airbnb, but they have to be properly regulated”, insisted the architect.
Barcelona, the example
Refering to airbnb regulation, Barcelona is one of the pioneers, becoming an example to follow, even for Mexico City. Since December 2021, a strategy for the zero growth of tourist-use housing (VUT) in the city was established.
Thus, it has managed to reduce the volume of homes for tourist use, with an inventory that went from 9,657 units in 2017 to 9,434 in 2022.
In addition to controlled distribution, Barcelona law requires that short-term rentals have a license.
However, the Inside portal Airbnb It shows that, currently, the city has 16,920 houses and apartments listed on the platform, of which 31.5% operate without the corresponding authorization.
It is worth mentioning that, in the case of Mexico City, the inventory of units listed in Airbnb is 22,948 homes, while the average stay is 65 nights with an average price of 1,537 pesos per night.
| Mexico City | Barcelona | |
| Total units offered | 22,948 | 16,920 |
| average stay | 65 nights | 79 nights |
| Average price per night | 1,537 pesos. | 3,543 pesos |
| Source: Inside Airbnb |
