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I think the main issue is that there are laws related to hotels and there are laws around renting/leasing and there are laws around owning houses. The "short term rental" category gets to bypass all these regulations and that is the exclusive source of their margins. Once government constructs rules around short term rentals, the advantage goes away. It is also interesting that the focus of these discussions is never really balanced. It is always why it is bad for home owners or would be renters OR exclusively why it is great for consumers who get to pay less, etc. These things are complicated and it will take slow governments more time to adapt to the changed world.



> The "short term rental" category gets to bypass all these regulations and that is the exclusive source of their margins

I agree in part and disagree in part. I do think that regulatory arbitrage is part of what makes Airbnb, Uber, et al valuable. I don't think it's the exclusive source of their margins. They generate a lot of value through creating a liquid 2-sided market.


Not disagreeing, but aren't classified and brokers and apps like apartments.com already a liquid 2-sided market? If what you are saying is that they create a liquid market for short term rentals where that didn't exist before, then I agree but again I think that is a lot less liquid when regulation gets applied.


They definitely are. I’m saying Airbnb will be valuable for the same reason they are even as regulation limits their market.




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