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Detroit Quietly Bans Airbnb (curbed.com) 197

A new zoning ordinance that quietly went into effect this week has residents trying to figure out what comes next for Airbnb's presence in Detroit. Many hosts have received notices that the city has outlawed Airbnb for R1 and R2 zoning. Curbed Detroit reports: The new zoning ordinance apparently went through the Planning Commission and City Council in 2017, and went into effect this week. The text added to the amendment states: "Use of a dwelling to accommodate paid overnight guests is prohibited as a home occupation; notwithstanding this regulation, public accommodations, including bed and breakfast inns outside the R1 and R2 Districts, are permitted as provided in Sec. 61-12-46 of this Code." The vast majority of Airbnb units in Detroit are in R1 and R2 districts. These do not include places like lofts, apartments, or larger developments. Airbnb has issued a statement saying: "We're very disappointed by this turn of events. Airbnb has served as an economic engine for middle class Detroiters, many of whom rely on the supplemental income to stay in their homes. We hope that the city listens to our host community and permits home sharing in these residential zones."
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Detroit Quietly Bans Airbnb

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  • by blahbooboo ( 839709 ) on Thursday February 08, 2018 @06:27PM (#56091919)

    Well there goes the big vacation I had planned for beautiful downtown Detroit..

    • by PopeRatzo ( 965947 ) on Thursday February 08, 2018 @06:42PM (#56092025) Journal

      Well there goes the big vacation I had planned for beautiful downtown Detroit..

      You might be surprised to learn that lots of Detroit has been coming back strong since like 2010. Neighborhoods that were all but abandoned are showing signs of growth and there are lots of areas that are experiencing a full-scale renaissance.

      Back in 2017, I visited there for 10 days to give some lectures and participate in a symposium and I got to see areas of the city where I never would have gone ten years ago. I was surprised at how nice it was and how optimistic many of the people who live there have become. There is a vibrant arts community and people really have a community feeling. Detroit will be back.

      Because I love you all, here's a little something for you to groove to while you're pondering the Detroit Renaissance:

      https://youtu.be/yotCw66_G1g [youtu.be]

      • Back in 2017, I visited there for 10 days to give some lectures and participate in a symposium
        I guess you stayed in an AirBnB?

        • I guess you stayed in an AirBnB?

          No, I stayed at some really nice place called the Inn on Ferry, near the Wayne State Art Center. It was kind of expensive, but someone else was paying, so I splurged. They had really good room service. We went to gallery openings and a couple of music shows while we were there.

          If I get invited back, I'd go in a second and wouldn't hesitate to stay in an AirBNB.

          • I actually was only kidding.
            Obviously if you get invited to a conference or a talk they pay for your accommodation.

      • by Balthisar ( 649688 ) on Thursday February 08, 2018 @09:25PM (#56092769) Homepage

        Conceived of in 1971 and opened in 1977, the Renaissance Center was heralded as the Renaissance of Detroit. I only bring this up because I find it interesting that you chose the wording "Detroit Renaissance."

        Detroit's important symbolically to my region (SE Michigan), and I think that most of us would like to see it "come back," at least as far as the city center is concerned. Realistically, it should probably un-anex most of the communities it absorbed over the last 100 years and concentrate on its strengths.

        Right now, "Detroit" as a legal entity kind of drags down the region as a whole, which is unfortunate because we're all "Detroit" (as far as the country is concerned), but we don't exhibit Detroit's problems, as far as the political entity is concerned.

        • Right now, "Detroit" as a legal entity kind of drags down the region as a whole

          I don't know. There's a lot of parts of Michigan that are dragging the state down.

    • And there goes my vacation and my shopping spree. With AB&B, we could rent a 4 bedroom home for a 7 days, for what it would cost us for two days in a hotel. Some of our savings allows us ot cook our meals, to leave the car parked, and to tour the city via Uber.

      I guess the economy is too good, or the hotel industry got their lobby guys to spread some good will around.

  • Glad to see the city is looking out for the less fortunate.
  • by Vinegar Joe ( 998110 ) on Thursday February 08, 2018 @06:36PM (#56091977)

    Wherever will I stay when I visit "The Paris of the Midwest"??? Dearborn???

  • by rsilvergun ( 571051 ) on Thursday February 08, 2018 @06:38PM (#56091997)
    I don't like AirBnB. They drive up home prices and contribute to making home ownership unaffordable. They make it practical for investors to 'park' their money into real estate and keep houses off the market. There's a great case to be made for banning them in any competitive housing market

    But isn't Detroit the furthest thing from a competitive housing market? Then again, while a lot of the city is in ruins for all I know the number of actual livable houses might be smaller. Lord knows nobody's going to build there.
    • Re: (Score:2, Interesting)

      by Anonymous Coward

      I live in a neighborhood with one house that is full time AirBnB, and the other two have guests intermittently(a lot). I can tell you this. Get ready for your on street parking to turn into a clusterfuck that it wasn't before. Now there is a constantly changing inventory of cars, taking up all the on street parking in my neighborhood because now people want to turn their houses into motels. Imagine if these were full time "guests" or roommates. Then a least it would be the same cars, that usually(becau

    • by Ichijo ( 607641 )

      They make it practical for investors to 'park' their money into real estate and keep houses off the market.

      Then allow rentals only in owner-occupied units.

      And switch at least partially from property taxes to land value taxes [bloomberg.com] in order to discourage banking of vacant land and end the reverse subsidy [strongtowns.org] of suburban middle-class single-family homes at the expense of poor inner-city residents.

      And if you're really concerned about home affordability, allow cities to upzone heavily trafficked residential streets (the

    • by Pfhorrest ( 545131 ) on Thursday February 08, 2018 @07:57PM (#56092423) Homepage Journal

      The exact same thing is true of rent in general. Which isn't an argument for AirBnB, it's an argument against rent in general.

      • If you get rid of renting homes, then where do you propose people live if they haven't yet saved up enough for a down payment on a house?

        Aside from areas with limited housing (either limited by space or by short-sighted zoning restrictions), the logical response to investors buying up houses and parking their money in real estate isn't to outlaw rentals. It's to build more homes. That increases the supply of homes, drives down the price of housing, and devalues money investors have parked in real estat
        • The implementation details are a long discussion I don’t want have with you (in particular), but I aim for a world where people can make reasonably small monthly payments and deposits comparable to what it costs to rent now, but that money goes to actually owning something some day instead of down a bottomless pit depleting peoples ability to pay for a home they actually own.

          As to your second paragraph, economic systems are all about allocating scarce resources. ao saying “except in circumstance

        • the logical response to investors buying up houses and parking their money in real estate isn't to outlaw rentals. It's to build more homes.

          Yes. And where do you plan to build those homes? Not where they are buying up houses, because there are already homes there. The answer is in the suburbs, and that's what's leading to our suburban sprawl. And if you do that, you're also building highways and possibly public transportation, energy infrastructure, water and sewer, etc.

          The US is appalling at city planning for the most part. We happily develop the farmland outside of cities, build more highways, and create these giant suburban islands, with no

        • If you get rid of renting homes, then where do you propose people live if they haven't yet saved up enough for a down payment on a house?

          If enough people like that are in the market, then the market will make homes available without a down payment.

          Also, many states have loans or even grants available for first-time homebuyers, to cover the down payment.

          • If enough people like that are in the market, then the market will make homes available without a down payment.

            Thank you, it's heartening that someone else can see this.

            If renting our property was not an option, people who own property they're not using (like what they had been renting out) have two options: let it sit there and rot and have wasted their money, or sell it on terms that people who need it to live in (like their former renters) can meet. (Since nobody else is going to be buying it to rent out, since they can't do that, the only buyers will be people who actually want to live there, not other "real est

    • If the housing market is competitive then shouldn't the hotel market also be competitive? And if they are both independently competitive, shouldn't they cross-compete for space?

      In other words, if there is X marginal demand for 1 more hotel room and Y marginal demand for 1 more apartment to rent, why is it a given that a unit that was an apartment previously must be so forever? And the same for hotel rooms?

      Also, investors that are parking their money in real estate aren't leaving them empty, right? They are

      • A hotel room may be more profitable, but still something a city wants to discourage. So people can afford to live in the city, say. Ever play Sim City? You need a mix of multiple land-use types.

  • Blame Quicken Mortgage Loans. They literally own Downtown Detroit.

    I bet heavy money that they orchestrated this.

    http://www.mlive.com/business/... [mlive.com]

  • What problem were they trying to solve? I don't get why they would bother to ban something that wasn't a problem... so what problems were being solved here? It just seems like the summary, and also the referenced article is phrased in a one sided way, or perhaps it really is one sided and this is the result of AirBNB refusing to pay a bribe?

    • The problem they are trying to solve is obvious: we don't collect any taxes from AirBnb rentals, like we do with hotels/motels.
      • Of course they are collecting taxes.
        Or do you want to accuse ever AirBnB host of tax fraud?

        • Of course they are collecting taxes.
          Or do you want to accuse ever AirBnB host of tax fraud?

          Next time you stay in a hotel, check out what percentage of it is "hotel tax". That's the money that the city collects for the privilege of having someone rest their head in your business overnight. In theory, this covers the additional police, fire, and roadway impact of having them in the community. In actuality, it's a cash grab. Most of the police impact of hotel visitors is victimless crime, like drug use or prostitution, and criminalizing those things is itself a cash grab, so it's cash grabs all the

          • The typical AirBnB is a person in a to big flat renting out a spare room on occasion.
            That has no influence on the market at all.

            AirBnB is collecting the hotel tax and transfering it to the city on behalf of the renter ... at least that is how it is dobe in europe.

            • The typical AirBnB is a person in a to big flat renting out a spare room on occasion.
              That has no influence on the market at all.

              If a person were doing it, it would have no influence. When enough people do it, it definitely has an influence. And in fact, it is having an influence.

              • It has an influence on the hotels that miss a deal, not on the flat renting market.
                Rents for flats do not magically increase just because I rent out a room in my 4 rooms flat 20 times a year. If at all empty flats would drop in rent ...

    • The home 3 houses down from mine is a short-term rental. The lawn is unkept and full of dandelions, there's a noticeable increase in the amount of garbage as you walk past it (sometimes including needles used for shooting up drugs), the house's paint is dilapidated and peeling off, and there are regularly 4-6 cars staying there which overflow onto the street regularly depriving the 4 houses around it of street parking. I seem to have gotten lucky and am just outside their sphere of influence, but the two
      • The lawn is unkept and full of dandelions, there's a noticeable increase in the amount of garbage as you walk past it (sometimes including needles used for shooting up drugs), the house's paint is dilapidated and peeling off, and there are regularly 4-6 cars staying there which overflow onto the street regularly depriving the 4 houses around it of street parking.

        It sounds like you ought to focus on those issues and not the fact that it's a rental. The owner, not the renter, is ultimately responsible for maintaining the property.

        • So, exactly what are the neighbors supposed to do about it? They can phone in individual minor complaints to the police or other authorities. That's not going to get them very far. A police officer might show up to a noisy party at 2AM and tell the people to keep it down. The noise will then quiet until, say, 2:05 or 2:10. If the police officer writes tickets, the visitors are likely to tear them up, since they're from out of town, and in any case there will be a new noisy group in the next weekend.

  • Just buy (Score:5, Funny)

    by Dan East ( 318230 ) on Thursday February 08, 2018 @06:50PM (#56092089) Journal

    Detroit has 31,000 empty houses. Wouldn't it just be cheaper to buy a house to stay in for a few days and burn it down or something when you're done with it?

    https://en.wikipedia.org/wiki/... [wikipedia.org]

    • Many of those houses have been stripped of all metals and are in very poor repair. They have all also been disconnected from electricity, sewer, and water service, and restoring service likely costs more than the value of the property. So, while they are cheap, you probably don't want to stay in one!
    • Detroit has 31,000 empty houses. Wouldn't it just be cheaper to buy a house to stay in for a few days and burn it down or something when you're done with it?

      While the rent would be dirt cheap, the thousands of dollars of guns, ammunition, body armor, and guard dogs you'd need to survive your stay would offset the savings.

    • The prices are coming up:

      https://www.trulia.com/for_sal... [trulia.com]

      In case you think I'm kidding, when I did a search like that 5 years ago the low end was $100-$200 for a house. People were selling blocks for a grand. At least now they're back to a few thousand.

  • Look, Uber's business model is based on getting around taxi medallion fees. AirBnb's business model is based on getting around hotel taxes. Did you really think municipalities were going to sit still and let you get away with that? Local governments are going to fight tooth-and-nail against anything that cuts into their revenues... and they have the power to revise zoning laws at their whim.
    • Except you are not getting around hotel taxes or vat.
      AirBnB is keeping that part of the payment and is paying it to the local tax offices ... at least that is how it works in Europe.

    • by b0bby ( 201198 )

      Lots of places tax AirBnB stays, so that seems unlikely to be the root cause.

    • Also, annoyed neighbors call their elected officials and tell them to stop the problem or get kicked out next election. City elected officials are generally pretty close to their constituents, and have to take them seriously. Given an AirBnB house on a block, there's probably several people who will vote against anyone who wants that to continue, and many fewer voting in favor of the house.

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