Air BnB -- are these people insane, or just lying? (1 Viewer)

GW93

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So with short term rentals soon to be legal in NOLA, and with British Airways beginning regular service to MSY this spring, I went to AirBnB.com to see what kind of prices they have in other cities -- like London, for example.

Check out this listing -- 4 bed, 2 bath, entire home available for $202/night. I don't know jack about London neighborhoods, but according to the map, it's walking distance from 10 Downing St.

On our side of the pond, here's a 4/3 in Times Square for $300 a night (more like $325/night after fees). The ad says it includes free parking on premises.

Closer to home, here's a 2/2 at Carondolet and Common for $274/night.

$274 a night for NOLA CBD, $300 a night for the heart of Manhattan (with free parking in the building, no less), and $202 (or maybe it's £202) just a short walk away from the PM's place in London.

So, like I said, are some of these people just not aware of how much their property is worth, or are they just full of it?
 

Heathen Saint

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There are some incredible deals on AirBnB

I've used the service twice..once on a trip to Maui with some friends and another staying in Guatemala. The prices were outrageously cheap compared to some of the hotel, even hostel listings in the respective areas.

I am checking this out for the week after christmas: https://www.airbnb.com/rooms/11938416?checkin=12%2F26%2F2016&checkout=01%2F01%2F2017&guests=5&s=AtrJ_lL6
Just realized the owner is a fellow Who Dat..Small world!

I personally wouldn't mind if I never stayed in a hotel again..But then again I don't mind pitching a hammock outdoors if it comes down to it:9:
 

CountWhoDat

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As much as I hate to say it, New Orleans is in the midst of a real estate bubble that will eventually burst like none ever has before.

Housing in certain neighborhoods is going for absurd prices, and the rent has followed suit. Many of these double shotgun houses are beginning to outstrip the flood insurance coverage limit @ 250,000, meaning extra private flood insurance ($$$) is gonna be required to protect the investment in those 30 years mortgages.

When you add up the total cost of owning a home in New Orleans, it becomes almost unthinkable. If the more dire future predictions are correct, the NFIP is going to either go bankrupt or stop subsidizing housing on the flood plain, which spells utter disaster for the NOLA housing market. Its scary.

The short term rental prices are just a reflection of this trend. I think that it has to cool down at some point, regardless of how much outside investment is coming in. But the current reality is that New Orleans has some of the fastest rising real estate prices in the US.
 

efil4stnias

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As much as I hate to say it, New Orleans is in the midst of a real estate bubble that will eventually burst like none ever has before.

Housing in certain neighborhoods is going for absurd prices, and the rent has followed suit. Many of these double shotgun houses are beginning to outstrip the flood insurance coverage limit @ 250,000, meaning extra private flood insurance ($$$) is gonna be required to protect the investment in those 30 years mortgages.

When you add up the cost of owning a home in New Orleans, it becomes almost unthinkable. If the more dire future predictions are correct, the NFIP is going to either go bankrupt or stop subsidizing housing on the flood plain, which spells utter disaster for the NOLA housing market. Its scary IMO.

The short term rental prices are just a reflection of this trend. I think that it has to cool down at some point, regardless of how much outside investment is coming in. But the current reality is that New Orleans has some of the fastest rising real estate prices in the US.
Map revision 10/1

its completely changed the flood premium landscape ( for most of my clients - for the better. In some cases up to 70%)
 

Saint_Ward

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As much as I hate to say it, New Orleans is in the midst of a real estate bubble that will eventually burst like none ever has before.

Housing in certain neighborhoods is going for absurd prices, and the rent has followed suit. Many of these double shotgun houses are beginning to outstrip the flood insurance coverage limit @ 250,000, meaning extra private flood insurance ($$$) is gonna be required to protect the investment in those 30 years mortgages.

When you add up the cost of owning a home in New Orleans, it becomes almost unthinkable. If the more dire future predictions are correct, the NFIP is going to either go bankrupt or stop subsidizing housing on the flood plain, which spells utter disaster for the NOLA housing market. Its scary IMO.

The short term rental prices are just a reflection of this trend. I think that it has to cool down at some point, regardless of how much outside investment is coming in. But the current reality is that New Orleans has some of the fastest rising real estate prices in the US.
This.

Also, from having used airbnb to recently set up a Mardi Gras trip (obviously, haven't gone yet), that price seems to be a special event price.

Also, some owners are more diligent about changing their rates based on events and normal time than others.

Much like hotels, I bet special events add 50-100/night easily.
 

guidomerkinsrules

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As much as I hate to say it, New Orleans is in the midst of a real estate bubble that will eventually burst like none ever has before.

Housing in certain neighborhoods is going for absurd prices, and the rent has followed suit. Many of these double shotgun houses are beginning to outstrip the flood insurance coverage limit @ 250,000, meaning extra private flood insurance ($$$) is gonna be required to protect the investment in those 30 years mortgages.

When you add up the cost of owning a home in New Orleans, it becomes almost unthinkable. If the more dire future predictions are correct, the NFIP is going to either go bankrupt or stop subsidizing housing on the flood plain, which spells utter disaster for the NOLA housing market. Its scary IMO.

The short term rental prices are just a reflection of this trend. I think that it has to cool down at some point, regardless of how much outside investment is coming in. But the current reality is that New Orleans has some of the fastest rising real estate prices in the US.
this is my fear also - b/c of geography NO has a ceiling on how much it can grow/sustain
you have singles and young couples moving into downtown and most of those will move on 3-5 years (move to lakeview/burbs to raise a family, or move to another city chasing the next thing) - will we continue to be able to replace those people?
if the market cools, what keeps these people coming NO?
will "Culture" continue to get priced out of these neighborhoods?

Chevron has already started tightening its purse strings on local philanthropy - is anyone going to be able to pick up that check?
 

CountWhoDat

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Map revision 10/1

its completely changed the flood premium landscape ( for most of my clients - for the better. In some cases up to 70%)
Good point, I forgot about the new FIRM maps. Is it possible you could link the final version? I cannot find it by googling.

Subsidence is also an underrated problem, and with all the talk of climate change it has been sorely ignored in favor of coastal issues. In fact, I've read that up until recent satellite surveying methods were used, the ground surveys performed by FEMA were often badly inaccurate because the ground on which the surveys were performed had subsided considerably since the last measurement, and that wasn't taken into account. Waters rise + ground sinks = red alert.

Sure, the "Sliver on the River" will survive longer than the rest of the city and perhaps that property will continue to rise in value. But on the flip side, is New Orleans a sustainable metropolitan area with only the property abutting the river left? It would be an urban planning nightmare to "rebuild" things to accommodate with the way residential is laid out now. There's more to the city than CBD and Uptown and its insanity to suggest that it will chug along just fine with the rest of the map blacked out.
 

inetnawlins

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I think the short answer is that you didn't realize how much of a tourist destination New Orleans is. I drive some for Uber and just have a listing on AirBNB for $400 a night. Had four takers the first night I put it up.

People here rent airbnb when they come to conventions, for vacations and business trips. The Hotels at times are ridiculously expensive and many times no rooms are available.

So the rates are higher in a high demand area.

Also, my house expenses have gone through the roof since Katrina. So, my rent I charge has gone up.
 

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I did an Airbnb when I went to SD for the game. 127 for Friday and Saturday night. Lady gave us a discount if we would feed, water and take care of her cat's litter box. Great deal especially when hotels go outrageous on those days. It was only a bedroom and bathroom but hey I was in San Diego, so all I did was go to sleep anyway. Great deal. But, yeah it's up to the renter to set their price. Sometimes it's great, others not so much. But if you are in an area where it makes it a super convenience, people will pay


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GW93

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I don't doubt that the NOLA listings are going for what the owners are asking. I was more surprised that I could get these amazing-looking places in midtown Manhattan and central London for so low, so it caused doubts about their legitimacy.

Now I'm all full of new vacation ideas.

EDIT: The 4 bed, 3 bath in Times Square is no longer available. At that price, I'm not surprised.
 

Brennan77

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Take a look at comparable world cities and I think you'll see that our real estate situation is not uncommon. If anything, we are still undervalued for historic and centrally located properties.

The bigger question is about culture and the price we pay for catching up.

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Dre

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Take a look at comparable world cities and I think you'll see that our real estate situation is not uncommon. If anything, we are still undervalued for historic and centrally located properties.

The bigger question is about culture and the price we pay for catching up.

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I agree. I think NOLA prices were artificially low for a very long time. And now we are just catching up.
 

guidomerkinsrules

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Take a look at comparable world cities and I think you'll see that our real estate situation is not uncommon. If anything, we are still undervalued for historic and centrally located properties.

The bigger question is about culture and the price we pay for catching up.

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compared to median income? i'd find that hard to believe
 

Jackavelli

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Yes I could look it up but can someone give me a very quick rundown how this works?

Just reading above sounds like u accept place and pay online, show up and get a key? The listing will tell you how much of the home you can use. Is this correct.

How do you get key if no one will be home.
 

Brennan77

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compared to median income? i'd find that hard to believe
Good question. I'd like to look at a city like San Francisco and look at the median income of residents of the city proper along with housing costs and then compare to New Orleans. I have hunch that the scale will be similar. But what might scale New Orleans towards a higher discrepancy between income and housing costs is the fact that we still have a lot of low to middle class residents living within the city center. Of course I am making no social or moral judgement as to what a city ought to be. But that doesn't seem the norm to me for a modern large city. It's sort of the whole suburbs/commute model. In short, I just don't get the idea that New Orleans is particularly worse off in these matters than other cities.

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