The big news this week for Airbnb is that it hit profitability in mid-2016, according to Bloomberg. But the home-sharing site still faces a host of restrictions in cities ranging from New York to Barcelona—and most recently Oakland, California: Officials there are primarily concerned with illegal hotels and their drain on long-term housing stock.
Airbnb has already offered to work with officials in San Francisco on cracking down on rogue users. The question is whether losing illegal users will eat into its bottom line. A report from Oakland’s city planning department showed that 14% of local Airbnb listings were from non-resident users. But in other regions it might be higher. A 2016 report showed that nearly 40% of tourist apartments in Barcelona were illegal.
If restrictions do come to bear, what will it mean for Airbnb? Let me know what you think. Tweet me at @ruthreader on Twitter.RR