23rd August 2022
As Inflation Rises, So Do New Airbnb Hosts
Inflation has been climbing steadily higher worldwide, and in New Zealand these findings are no different. But while the cost of living has skyrocketed since June of this year, so too have the number of Airbnb hosts.
Top tourism destinations, such as Canada, New Zealand and America have seen a steady increase in new hosts who are looking to make ends meet. Other contributors to host growth, such as seasonality and demand, factor in as well, but the overwhelming demand of affordable hosting is largely based on financial incentives.
In New Zealand, this means a 7.3 percent increase in new hosts, as well as a 30 percent increase in new hosts for the second quarter of 2022.
Mortgage on My Mind.
It’s no secret that Airbnb hosts have universally shared their reasons for doing so: hosting helps them pay the bills. Many have claimed that the need to pay their mortgage or rent incentivises them to continue hosting in the first place.
In 2021, nearly 40 percent of Airbnb hosts claimed the income they earned through hosting had allowed them to pay off their expenses, including bills, rent and a home mortgage. With the cost of home ownership rising, New Zealanders are not only turning to hosting to solve their financial worries, but also to possibly host more frequently.
New Hosts Are Seeing Opportunity
Inflation might be rising, but so is the income average for new hosts. Airbnb reported in 2021 that a typical host in America earned over $13,800 — an increase in 80 percent in 2019.
For those new hosts who started after the cost of living skyrocketed, there is still an opportunity to earn a little extra. New hosts have earned a combined average of $1.8 billion globally in 2021, more than 30 percent in 2019.
Overall, this opportunity has stretched even further in 2022, including for younger hosts who have realised the potential that Airbnb hosting has. Reportedly, younger hosts can fulfill their financial dreams, even as their responsibilities stack up around them.
Even hosts with limited space can get in on the action through private room listings, a way to earn by listing singular rooms to travellers in a host’s room. This is often seen as a simple — and increasingly popular — way to earn additional income, particularly amongst those who are avid tourists themselves.