Doesn’t it suck when your favorite app goes mainstream? New stats show that AirBnB’s rapid growth is adding thousands of units for people to book everyday. This is great news if you’re looking to make a booking, since you’ll have your pick of the lot. It’s kind of crappy news if you’re a host looking to rent your place, since you’ll be competing with more units than ever. Simple supply and demand logic means the more the inventory, the cheaper the rates. So we decided to take a look at whether that holds true across the company’s inventory across the G7.
Inventory Is Building
The number of units available for rent increased…by a lot. Units across the G7 increased by 3.2% month-over-month to 1,535,279 units. This was slower than the global inventory, which increased by 3.6% from the month before to 3,146,509 properties. The UK and Canada experienced the highest growth in the G7, posting 4.5% and 4.4% respectively in gains.
AirBnB Inventory Change December
December 2016
Not a surprise, but the US has the highest number of rooms. At the time of analysis it had 525,022 listed – a whopping 17% of AirBnB’s global inventory. Japan was the country with the least number of units listed, with 46,196 properties for rent.
AirBnB Median Rate G7
December 2016
Rental Prices Are Declining
The median price of a booking is dropping across the G7, except for the United Kingdom. The UK posted a 0.9% increase from the month prior, making the median price of a listing US$122. On the flip side, Japan experienced the greatest loss in median prices. Listing declined 7.1% to US$60, a similar median rate to developing countries like India (also $60). I wonder if Japan is a terrible place to rent your pad on AirBnB, or India is just insanely profitable.
AirBnB Median Prices Changes G7
December 2016
Renting A Whole House Is The Fastest Growing Segment
The fastest growing type of property in December was whole home rentals. The practice that is actually banned in Vancouver and New York City, rose 4.0% to 1.42 million full homes. This was close to the global trend of their full-home inventory that rose 3.7% to 2.18 million full homes.
It appears the popularity of the platform may be growing faster for hosts, than for people looking to book. Great for renters, but it doesn’t seem quite as profitable as it was in the early days. Greater competition amongst impromptu hoteliers, appears to be impacting profit margins. Since this is the first month of data collected for the G7, it’s unclear if this is a trend that will continue. Check in next month to see how it holds up.
Data courtesy of alltherooms, photo via AirBnB.
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Hello,
I was reading your article here: https://betterdwelling.com/1-91-million-canadians-are-borrowing-against-their-home-equity/
I am confused on one statistic that was mentioned “…22% of Canadians that purchased a home between 2014 – 2016 have already paid off their home…” see below for reference…
How can such a high % of homeowners in 2014-16 pay off their house in just 2-3 years?
Reference “The report estimates that 21% of Canadians that purchased their home before 1990, still haven’t paid it off after more than 27 years. Conversely, 22% of Canadians that purchased a home between 2014 – 2016 have already paid off their home. 1% of Canadians that purchased homes between 2014-2016 have negative equity in their property. Yikes.”