Key Takeaways
- Based on newly launched estimates, journey on Airbnb generated greater than $90B in financial exercise throughout the USA in 2024
- The inflow of customer spending helped help a couple of million estimated jobs nationwide final yr – a brand new report – serving to to generate over $52B in labor earnings.
- Whereas many communities proceed to profit from tourism on Airbnb, a brand new research finds that strict short-term rental guidelines led to main cities probably dropping as a lot as $2.4B in financial exercise yearly mixed – together with $1.6B in forgone visitor spending at native eating places, outlets, and leisure venues.
In 2024, Airbnb marked a significant milestone with our 2 billionth guest arrival when Wisconsin retirees Tim and Theresa stayed in a spectacular Guest Favorite Airbnb in Sandy, Utah, with their household. All throughout the nation, vacationers like Tim and Theresa are reserving Airbnbs to reconnect with family members and expertise new locations. In doing so, they’re additionally supporting native economies – from small cities to massive cities – and driving significant financial impression into each nook of the nation.
Based on newly launched estimates, journey on Airbnb generated greater than $90 billion in financial exercise throughout the USA in 20241 – a report determine reflecting the entire contribution pushed by company, hosts, and the companies company help.
For the primary time ever, journey on Airbnb helped help over a million U.S. jobs
Based on the findings, in 2024, the everyday visitor within the US spent greater than $775 per journey on different items and companies like eating places, leisure, buying, and different native companies2. That inflow of customer spending helped help a couple of million estimated jobs nationwide final yr, serving to to generate over $52 billion in labor earnings.
And since many Airbnb listings are positioned outdoors conventional lodge zones, these advantages are extensively dispersed. In reality, almost 50 % of visitor spending occurred within the neighborhood of their Airbnb3 – serving to generate financial exercise in locations that may not in any other case entice tourism {dollars}.
The advantages additionally help native governments. Journey on Airbnb generated over $25 billion in whole tax income throughout the U.S.4, together with $2.4 billion in tourism-related taxes collected and remitted by Airbnb on behalf of hosts at a time when governments are dealing with finances shortfalls.
Over-regulation results in main cities placing in danger $2.4B in financial exercise
Whereas many communities proceed to profit from tourism on Airbnb, a new study by main financial consulting agency Charles River Associates commissioned by Airbnb finds that over-regulation might price some main cities billions of {dollars}.
In New York Metropolis, Philadelphia, Boston, and New Orleans, strict short-term rental guidelines led to those cities probably dropping as a lot as $2.4 billion in financial exercise yearly mixed – together with $1.6 billion in forgone visitor spending at native eating places, outlets, and leisure venues5.
Native companies that help dwelling sharing – equivalent to cleaners, upkeep suppliers, and laundry companies – are additionally lacking out, having probably misplaced an estimated $150 million yearly in income in these cities.
The report additionally finds that accommodations have been the first beneficiaries of strict short-term rental legal guidelines – on the expense of almost everybody else: renters, guests, native residents, and native governments. Finally, as journey demand remained robust, fewer lodging choices, significantly in New York Metropolis pushed lodge costs increased – forcing many company to spend extra on lodging and fewer within the communities they got here to discover – all with out a significant impression on housing affordability or availability.
Based on the report, native governments might have misplaced almost $200 million in tax income every year, with New York Metropolis alone forfeiting $82 million – cash that would have been used to construct extra reasonably priced housing and assist alleviate the continuing housing disaster. These rules, ostensibly put in place to enhance housing affordability and availability, haven’t netted the meant outcomes. Lease in New York Metropolis following Native Regulation 18, for instance, has reached record heights, and emptiness charges remained unchanged.
This forfeited financial alternative comes on the similar time that cities face rising deficits, placing jobs and municipal companies in danger.
Airbnb’s economic impact spans all 50 states
The economic contributions of Airbnb travel are felt in every corner of the country – helping to boost local economies, support small businesses, and generate critical revenue for state and local governments. Click here or use the map under to raised perceive the impression Airbnb hosts and company have in all 50 states.
Methodological and authorized be aware:
The evaluation was carried out utilizing the IMPLAN financial mannequin, which considers three ranges of impression:
- Direct: refers back to the quick results of an financial exercise. Within the context of tourism, the direct financial impression is the preliminary expenditure by vacationers on items and companies throughout their journeys. This expenditure contains gadgets equivalent to lodging, meals, transportation, points of interest, and souvenirs.
- Oblique: refers back to the secondary results generated by the preliminary expenditure on associated industries that offer items and companies to the first trade. These industries present inputs or help companies needed for the operation of the first trade.
- Induced: refers back to the tertiary results ensuing from elevated family spending by workers of instantly and not directly affected industries. This contains the expenditure of earnings generated by workers associated to, or ensuing from, financial exercise.
IMPLAN is a regional financial evaluation software program program designed to estimate the impression or ripple results (particularly, oblique linkages) of a given financial exercise inside a particular geographic space by making use of its input-output matrix and social accounting mannequin. Research, outcomes, and experiences primarily based on IMPLAN knowledge or purposes are restricted by the assumptions of the researchers relating to the topic of the occasion being modeled. Research equivalent to this one are under no circumstances endorsed or verified by IMPLAN Group, LLC, until in any other case indicated by an IMPLAN consultant.
The scores, percentages, and financial knowledge included on this launch are primarily based on inside data from the Airbnb platform collected throughout 2024, in addition to on research ready or commissioned by Airbnb to investigate the financial impression of digital tourism within the US. This launch is for informational functions solely and doesn’t represent a assure or business illustration relating to the standard, availability, or traits of the areas listed on the platform.
About IMPLAN
Because the main supplier of financial impression knowledge and analytical purposes, we have now spent many years serving the financial knowledge wants of researchers, policymakers, decision-makers, advocates, enterprise leaders, governments, and extra.
IMPLAN has been redefining the sphere of economics for over 40 years. Created by teachers to serve the wants of the U.S. Forest Service, it has now reworked to function a options supplier for anybody eager about understanding their economics.
1. Estimated financial impression primarily based on an inside evaluation utilizing the IMPLAN financial impression mannequin which assesses direct, oblique and induced financial exercise. 2. Inside survey of company within the US from January 1, 2024 to December 31, 2024, excluding the price of a list. 3. Based on an inside survey of company within the US for the calendar yr 2024. 4. Estimated taxes related to financial exercise generated by Airbnb stays. Extra data supplied within the Methodology part above. 5. Estimated annual financial losses calculated primarily based on knowledge from September 2023 – August 2024.
About Airbnb
Airbnb was born in 2007 when two hosts welcomed three company to their San Francisco dwelling, and has since grown to over 5 million hosts who’ve welcomed over 2 billion visitor arrivals in nearly each nation throughout the globe. Day by day, hosts provide distinctive stays and experiences that make it potential for company to attach with communities in a extra genuine manner.
About Airbnb.org
Airbnb.org is a nonprofit group devoted to facilitating momentary stays for folks in occasions of disaster around the globe. Airbnb.org operates independently and leverages Airbnb, Inc.’s know-how, companies, and different assets at no cost to hold out Airbnb.org’s charitable function. The inspiration for Airbnb.org started in 2012 with a single host named Shell who opened up her dwelling to folks impacted by Hurricane Sandy. This sparked a motion and marked the start of a program that enables hosts on Airbnb to supply stays for folks in occasions of want. Since then, this system has developed to give attention to emergency response and to assist present stays to evacuees, aid employees, refugees, asylum seekers, and frontline employees preventing the unfold of COVID-19. Since then, hosts have provided to open up their properties and helped present lodging to 100,000 folks in occasions of want. Airbnb.org is a separate and impartial entity from Airbnb, Inc. Airbnb, Inc. doesn’t cost service charges for Airbnb.org supported stays on its platform.
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