Do short-term-rental services like Airbnb and HomeAway make it harder for average renters to find affordable housing?
Zillow decided to ask housing experts. According to the new Zillow Home Price Expectations Survey, most of them don’t believe short-term rentals are the root of the inventory shortage.
Only about 5 percent of the surveyed experts think short-term rentals have a major impact on housing affordability. Half of the experts believe Airbnb-style services have a “meaningful, but small” effect on inventory. About 40 percent surveyed don’t believe those types of rentals are meaningful.
The surveyed housing experts also think home prices will have appreciated by nearly 5 percent by the end of this year, with 3.6 percent in appreciation forecast by the end of 2017. Rents are expected to rise by 1.6 percent by next October.
“More than 90 percent of the 111 panelists who participated in this quarter’s survey expect home value growth to be slower next year, and more than 85 percent of them foresee home value appreciation rates flat or lower compared to 2016 in every year through 2021,” said Pulsenomics founder Terry Loebs.
“While those figures represent a clear consensus that home value growth will moderate in the coming years, there is no consensus concerning the pace of the expected deceleration. For example, the most optimistic experts project that U.S. home value appreciation will average more than 4 percent annually through 2021, while the most pessimistic expect an average annual rate of just 1.1 percent for 2017 and beyond.”