A Sharing Economy Should Not be a Self-fish Economy

New York prohibits the rentals of multi-unit apartments for less than 30 days if the tenant is not present. Just recently, governor Andrew Cuomo has signed a bill into law prohibiting even listing an advertisement for such apartments, posing a hefty fine of up to $7,500 for offenders. Not surprisingly, Airbnb is suing New York, claiming that the law violates the company’s free-speech rights to promote its business.

A major reason behind New York’s decision to put heavy restrains on Airbnb and other similar services such as HomeAway or VRBO is to prevent rent and housing prices from skyrocketing in the city. A homeowner could supposedly purchase or rent multiple apartments in the city and advertise them on Airbnb for rent. This could severely limit the number of available housing for local residents looking for a long-term apartment as most Airbnb users are people traveling or on a business trip from another part of the country or the world.

As our resources become more and more scarce in the future, the survival of our cities and our world will depend heavily on the sharing of resources. Airbnb is one of the leaders in a new sharing economy. Being able to cope with conflicting interests is a key to success and long-term growth in this economy. Airbnb needs to integrate rent prices and the interests of local residents into its vision, adopt stronger quality controls over vacant apartments, and take responsibility for the community.