Could Airbnb Actually be an Affordable Housing Solution?
By Brent Woodcox
One of the primary arguments opponents of short term rentals and Airbnb use against the service is that it negatively affects the housing supply even though studies have shown the effects of short term rentals are a relatively minuscule factor in that equation.
But now comes this article from The Wall Street Journal showing how mortgage lenders are shifting towards counting rental income when considering homeowners looking to refinance their loans. This is game changing because it means that families struggling to make ends meet or afford to send a child through college may not get the benefit of home equity from the rental income generated by being Airbnb hosts. It may even help families who would be unable to secure a loan do so with a plan to rent out a portion of that home on a short term basis.
With an affordable housing crisis ongoing in Raleigh, I'm anxious to see how new lending practices might help families afford to secure a mortgage that they can afford. Hopefully, this also encourages city policymakers to join the 21st century and recognize that the sharing economy is not a fad and is helping families to build for themselves a better future.