Airbnb growth slows worldwide as regulations increase

Listings grew 35% in February, compared to 110% in October

TRD New York /
Apr.April 14, 2017 02:00 PM

Airbnb Founders Joe Gebbia, Nathan Blecharczyk and Brian Chesky (Credit: Getty Images)

With lawmakers in New York and other cities across the globe clamping down on home-sharing, Airbnb is struggling to grow at the same explosive rate it’s accustomed to.

Year-over-year worldwide growth at the $31 billion startup has been trending downward since October, according to a new report by Swiss investment bank UBS cited by CNBC.

Listings that month grew by about 110 percent, but in February that figure had slipped to about 35 percent.

Not coincidentally, Gov. Andrew Cuomo in October signed a law prohibiting New Yorkers from advertising illegal short-term listings on sites like Airbnb. The city earlier this year started fining landlords and renters who allegedly violated the law.

And in Barcelona, short-term rentals require a special license, which the city stopped issuing in 2014.

The only way to start a new Airbnb listing there is to buy a property that has an existing license, according to CNBC, which noted the city fined Airbnb nearly $640,000 for advertising unlicensed listings.

“Our analysis suggests it is likely that regulation is having a negative impact on the supply and demand growth of Airbnb, especially in New York and Barcelona,” UBS said in a note. “Both cities showed year-on-year declines in available listing nights of around 10 percent in Feb 2017.”

UBS noted that there are cities that have increased regulation such as San Francisco, London and Paris where the effect on Airbnb’s growth is still unclear.

The company is still growing, just not at the same rate it has in the past. In its seven largest markets – the United States, France, Italy, Japan, Spain, the U.K. and Germany – the number of available listings each night grew by 40 percent year-over-year during the last three months, according to UBS. [CNBC]Rich Bockmann

Related Articles

Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

SoftBank taps former Sprint CEO to fix WeWork, this borough could house Trump’s presidential library: Daily Digest

Fisher Brothers' Winston Fisher and 55 East 52nd Street (Credit: Getty Images)

Airbnb investor takes more pricey office space on Park Avenue

Fears about privacy and Big Brother-like tactics in real estate are taking hold