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| Airbnb's data shows that Airbnb helps the middle class. But does it? | Airbnb's data shows that Airbnb helps the middle class. But does it? |
| (30 days later) | |
| Airbnb and Uber pitched the “sharing economy” as a key antidote to wage stagnation and inequality at the Democratic national convention with a campaign that critics say reflects the technology corporations’ pattern of deploying questionable data in its political battles. | Airbnb and Uber pitched the “sharing economy” as a key antidote to wage stagnation and inequality at the Democratic national convention with a campaign that critics say reflects the technology corporations’ pattern of deploying questionable data in its political battles. |
| Coinciding with its panel discussion on Tuesday, the popular home-sharing startup also released results of a survey it commissioned, which claimed that 74% of millennials have a “favorable” impression of the sharing economy and that 81% “want Airbnb to be legal”. | Coinciding with its panel discussion on Tuesday, the popular home-sharing startup also released results of a survey it commissioned, which claimed that 74% of millennials have a “favorable” impression of the sharing economy and that 81% “want Airbnb to be legal”. |
| While it’s no surprise that an Airbnb-sponsored survey produced pro-Airbnb statistics, the report, along with the broader PR campaign to present its services to a liberal audience at the convention, provided a window into the savvy political and media tactics the sharing economy companies have refined in recent years. | While it’s no surprise that an Airbnb-sponsored survey produced pro-Airbnb statistics, the report, along with the broader PR campaign to present its services to a liberal audience at the convention, provided a window into the savvy political and media tactics the sharing economy companies have refined in recent years. |
| For Airbnb in particular, the performance in Philadelphia offered a stark reminder of how the company has developed a careful data strategy that opponents say can mislead the public and regulators – and often deflects serious questions about the unintended consequences of the rise in “short-term rentals”. | For Airbnb in particular, the performance in Philadelphia offered a stark reminder of how the company has developed a careful data strategy that opponents say can mislead the public and regulators – and often deflects serious questions about the unintended consequences of the rise in “short-term rentals”. |
| In addition to its survey – which said that a majority of Americans believe “Airbnb helps middle class families afford their homes” and that “Airbnb will become more important to the economy in the next five to ten years” – the company’s policy chief, Chris Lehane, argued that the sharing economy was “democratizing capitalism” in his convention remarks. | In addition to its survey – which said that a majority of Americans believe “Airbnb helps middle class families afford their homes” and that “Airbnb will become more important to the economy in the next five to ten years” – the company’s policy chief, Chris Lehane, argued that the sharing economy was “democratizing capitalism” in his convention remarks. |
| “To speak millennial, you ought to be talking about the sharing economy because it’s core and central to their economic future,” said Lehane, a former aide to Bill Clinton. | “To speak millennial, you ought to be talking about the sharing economy because it’s core and central to their economic future,” said Lehane, a former aide to Bill Clinton. |
| The company, often in response to proposed regulations, has repeatedly advertised data that it claims supports the notion that Airbnb is helping average Americans make a little extra cash without disrupting neighborhoods or affordable housing. | The company, often in response to proposed regulations, has repeatedly advertised data that it claims supports the notion that Airbnb is helping average Americans make a little extra cash without disrupting neighborhoods or affordable housing. |
| But in the same way that this week’s survey appeared to ask self-serving questions, the company-produced research has faced accusations of flawed methodology from academics and advocates. | But in the same way that this week’s survey appeared to ask self-serving questions, the company-produced research has faced accusations of flawed methodology from academics and advocates. |
| Airbnb data from San Francisco, where the company is headquartered, and from New York City, where the company has faced intense political backlash, suggest that there is little problem with hosts using Airbnb for large-scale, hotel-like operations. | Airbnb data from San Francisco, where the company is headquartered, and from New York City, where the company has faced intense political backlash, suggest that there is little problem with hosts using Airbnb for large-scale, hotel-like operations. |
| The numbers seek to dispel a central concern that Airbnb may be exacerbating housing shortages by commercializing units for tourists without paying its fair share in taxes. | The numbers seek to dispel a central concern that Airbnb may be exacerbating housing shortages by commercializing units for tourists without paying its fair share in taxes. |
| For example, the company claims that only 17% of San Francisco hosts’ earnings come from short-term guests who are renting out an entire home managed by a host with multiple listings – implying that there are minimal cases in which rentals are functioning like professional hoteliers. | For example, the company claims that only 17% of San Francisco hosts’ earnings come from short-term guests who are renting out an entire home managed by a host with multiple listings – implying that there are minimal cases in which rentals are functioning like professional hoteliers. |
| In New York City, the “vast majority of listings are shared only occasionally” and the “median number” of nights booked per listing is 47, with 84% of listings shared for fewer than 120 days a year, according to Airbnb. | In New York City, the “vast majority of listings are shared only occasionally” and the “median number” of nights booked per listing is 47, with 84% of listings shared for fewer than 120 days a year, according to Airbnb. |
| Statistically misleading reports | Statistically misleading reports |
| While Airbnb promotes data showing that many hosts rent infrequently, which may be true, the reports are statistically misleading, said Ben Edelman, associate professor at Harvard Business School, who has written about Airbnb regulations. | While Airbnb promotes data showing that many hosts rent infrequently, which may be true, the reports are statistically misleading, said Ben Edelman, associate professor at Harvard Business School, who has written about Airbnb regulations. |
| Without releasing specific data on each host, Airbnb is essentially covering up the impact of the hosts who have set up sophisticated hotel businesses. They may be having a significant effect on the local housing stock – regardless of whether there are many other hosts who sign up and then use the site on an irregular basis. | Without releasing specific data on each host, Airbnb is essentially covering up the impact of the hosts who have set up sophisticated hotel businesses. They may be having a significant effect on the local housing stock – regardless of whether there are many other hosts who sign up and then use the site on an irregular basis. |
| “The starting point would be to provide item by item, property by property data to regulators,” Edelman said. | “The starting point would be to provide item by item, property by property data to regulators,” Edelman said. |
| Nancy Leong, University of Denver law professor, said she expects there will be an increasing push to require Airbnb to disclose meaningful data and face the kind of regulation that governs the conventional businesses they are replacing. | Nancy Leong, University of Denver law professor, said she expects there will be an increasing push to require Airbnb to disclose meaningful data and face the kind of regulation that governs the conventional businesses they are replacing. |
| She noted US senator Elizabeth Warren’s recent call for a federal investigation into Airbnb. | She noted US senator Elizabeth Warren’s recent call for a federal investigation into Airbnb. |
| In the meantime, however, Airbnb has fought efforts to force it to release detailed statistics. The company is suing the city of San Francisco, arguing in part that it should not have to disclose users’ registration data. And when the company was required to release data in New York City, it was accused of “purging” more than 1,000 listings from the site in order to rig a survey in its favor. | In the meantime, however, Airbnb has fought efforts to force it to release detailed statistics. The company is suing the city of San Francisco, arguing in part that it should not have to disclose users’ registration data. And when the company was required to release data in New York City, it was accused of “purging” more than 1,000 listings from the site in order to rig a survey in its favor. |
| “The real story of Airbnb are the hosts doing it full time and professionally,” said Steven Hill, a writer and critic of the sharing economy. Even if a relatively small percentage of hosts are running large businesses, “those are the professionals who are taking over buildings and evicting tenants to get them out of rent-controlled apartments”, he said. | “The real story of Airbnb are the hosts doing it full time and professionally,” said Steven Hill, a writer and critic of the sharing economy. Even if a relatively small percentage of hosts are running large businesses, “those are the professionals who are taking over buildings and evicting tenants to get them out of rent-controlled apartments”, he said. |
| Hill noted that a leaked memo from a real-estate developer estimated landlords could more than double their income by renting to Airbnb tourists as opposed to locals. | Hill noted that a leaked memo from a real-estate developer estimated landlords could more than double their income by renting to Airbnb tourists as opposed to locals. |
| Tom Slee, who has also scrutinized Airbnb, criticized the company for releasing data points saying that a “typical listing” earns a relatively small amount a year, such as $5,110 in New York City. | Tom Slee, who has also scrutinized Airbnb, criticized the company for releasing data points saying that a “typical listing” earns a relatively small amount a year, such as $5,110 in New York City. |
| “That tells us nothing at all about what the high-end hosts are earning,” said Slee. “If you couple that together with stories about particularly appealing hosts, you can create a very friendly impression – an impression of a low-impact business.” | “That tells us nothing at all about what the high-end hosts are earning,” said Slee. “If you couple that together with stories about particularly appealing hosts, you can create a very friendly impression – an impression of a low-impact business.” |
| ‘Some of their misinformation has been effective’ | ‘Some of their misinformation has been effective’ |
| Contrary to the picture painted by Airbnb’s data, independent analyses of listings have also found that hosts offering multiple listings made up more than 40% of the company’s business, Slee added. | Contrary to the picture painted by Airbnb’s data, independent analyses of listings have also found that hosts offering multiple listings made up more than 40% of the company’s business, Slee added. |
| Murray Cox, who created the website Inside Airbnb, which collects data on listings, said that his research has shown that in New York City listings where the entire home is rented out, a significant portion are rented out for a majority of the year. Cox has also found that hosts who rent out multiple homes make up a large percent of all listings featuring entire homes – up to 44% in New Orleans and 45% in San Diego, for example. | Murray Cox, who created the website Inside Airbnb, which collects data on listings, said that his research has shown that in New York City listings where the entire home is rented out, a significant portion are rented out for a majority of the year. Cox has also found that hosts who rent out multiple homes make up a large percent of all listings featuring entire homes – up to 44% in New Orleans and 45% in San Diego, for example. |
| The company’s statistics, however, can influence policy debates, Cox said. “Some of their misinformation and data releases have been effective.” | The company’s statistics, however, can influence policy debates, Cox said. “Some of their misinformation and data releases have been effective.” |
| Airbnb spokesman Nick Papas defended the company’s use of data in an email to the Guardian that included statistics on the benefits of the service. | Airbnb spokesman Nick Papas defended the company’s use of data in an email to the Guardian that included statistics on the benefits of the service. |
| He claimed that “nearly 13%” of hosts from ten of the largest US cities say their Airbnb income has helped them avoid eviction or foreclosure, and that half say their hosting income has “helped them afford to stay in their homes”. | He claimed that “nearly 13%” of hosts from ten of the largest US cities say their Airbnb income has helped them avoid eviction or foreclosure, and that half say their hosting income has “helped them afford to stay in their homes”. |
| He added: “Airbnb fights economic inequality and brings real economic benefits to people and cities and we are committed to sharing information about our community with policy makers around the world.” | He added: “Airbnb fights economic inequality and brings real economic benefits to people and cities and we are committed to sharing information about our community with policy makers around the world.” |