Airbnb’s exponential growth in the U.S., especially bigger cities, is no secret. Airbnb in Chicago has proven to be an entrepreneurs dream. With an average of $1,475 per month in passive income, 7,600 competitive listings, and an estimated 150 nights per year, Airbnb in Chicago has not only become a lucrative business for Airbnb hosts but has brought Chicago visitors closer to different businesses, restaurants, and shopping centers they may have never encountered.
The added exposure due to Airbnbs in Chicago continues to drive the hosting business and generate revenue to local businesses creating another huge win for the sharing economy. In 2018, Chicago Airbnb hosts earned over $77 million in income, up from $67 million earned in 2017.
Local hosts welcomed 500,000 guests in 2017, a significant jump from the 390,000 guests reported in 2016. Chicago Airbnb guests spent $270 million in 2017, with an average spending per day pegged at an estimated $171.
Airbnb operations in Chicago generated a total economic impact of $345 million in 2017, up from $331 million the previous year and increasing steadily.
Internet-based serve firms like Airbnb, use technological advances to bring needed innovation to stagnant sectors of the economy, increasing the quality of goods and services, and providing typical American families with more options for earning income and making traveling a more viable option. Let’s dive deeper into how hosts, businesses and the local economy continue to benefit for Airbnbs in Chicago
Airbnb in Chicago Creates Economic Benefits
The key potential benefit of being a Chicago Airbnb host today is that property owners can diversify the potential streams of revenue they generate from owning homes. For example, before Airbnb arrived in the windy city, property owners setting up residential rental properties faced transaction costs so high that it only made economic sense to secure relatively long-term leases.
The transaction costs incurred by property owners could include advertising for and screening of tenants and finding alternative accommodations for themselves if they were renting their dwellings. But with the rise of Airbnbs in Chicago, short-term rentals became logistically feasible and affordable. For the first time, it allows these property owners to diversify into short-term rentals as well as long-term rentals.
Another potential benefit is the increased supply (and variety) of short-term rentals available to travelers. This increased supply can restrain price growth for short-term rentals and make traveling more affordable. For the first time in a long time, Americans don’t feel they need to be rich to travel.
Finally, one of the more important benefits of Airbnbs in Chicago is the extra economic activity that results from Airbnb locations that increase visitors carious parts of the city and its surrounding towns. This particularly has benefited the city’s South Side, where growth in guest arrivals in 2017 was up 70 percent compared to the previous year. Much of the South Side is more economically depressed than other parts of the city, and Airbnb looks to be serving as something of an economic stimulant.
Besides the income generated by Chicago Airbnb property owners, income is generated by these visitors as they spend money at restaurants, entertainment, in grocery stores or on other activities.
It may not be all peach & cream when it comes to getting your slice of the Airbnb business pie. Chicago has many Airbnb rental regulations that are scaring off potential hosts. However, the toughest have stuck around and continue to contribute to the blossoming economy they’ve created.