Despite the Airbnb “horror stories” — 50 frat boys packing a tiny house for a weekend of debauchery — the real danger of short-term rentals, critics say, is the evisceration of neighborhoods, where greedy landlords displace long-time tenants for the quick buck of well-heeled weekenders. As New Orleans’ residents are replaced with tourists, the businesses that once served the neighborhood lose their customer base, and they too are replaced with overpriced establishments catering to the wealthy from elsewhere.
That view, supporters of the industry counter, gets the entire picture backwards. Airbnb actually allows residents to keep their homes amid rising prices by providing them with a small but significant supplementary source of income. Meanwhile, because the residents remain at the house, they have more money to spend at their favorite neighborhood establishments — and their guests often choose to spend money at the same places, strengthening the business community. Continue reading »