Airbnb's NYC Money Problems

October 27, 2017
Updated 6mo ago
Arun Sundararajan, Author, Digital Economy Scholar, and Professor at NYU Stern School of Business, discusses his latest research on Airbnb's business in New York City. His study chronicles why it's so hard for short-term rentals to be profitable in the Big Apple. Entire homes or apartments in the city would need to be let for 216 days to be as profitable as a long-term tenant, making it nonsensical to rent in New York City unless it is for an extended period of time. We talk about the future of Airbnb, which many analysts expect to go public in the coming year or so. We speak about the regulatory pushback that the platform receives from local governments. Sundararajan notes the staying power of the rental site, adding that he thinks regulations pose no existential threat to the future of the company. Sundararajan talks about what might be ahead for the company, adding that he expects the site to begin renting out apartment buildings specifically for short-term stays that cater to business customers, who may not want to stay in a person's bedroom.