Asheville: Buncombe Airbnb to Affordable Unit Plan Estimated to Cost Up to $390k
Buncombe County Commissioners are set to vote on a proposal that could see Airbnb owners receiving between $12,000 and $20,000 to convert their properties into affordable housing units. The move aims to address the pressing issue of affordable housing in the region and provide a cost-effective solution to the housing crisis.
Lower Costs Compared to Housing Subsidies
The estimated costs for compensating Airbnb owners under this program fall below the average subsidy provided by Buncombe County for new affordable housing units. According to county reports, the initiative could cost between $240,000 and $390,000 if implemented, making it a cost-effective alternative to traditional affordable housing subsidies.
Thrive Asheville’s Proposal
The proposal for this program came from Thrive Asheville, a local nonprofit organization. Their estimate for converting Airbnb properties into affordable housing units ranges from $12,000 to $19,500 per unit, proving to be a more economical option compared to standard subsidies.
Incentive Distribution Process
Payments to landlords would be disbursed over time, with the first installment provided at the signing of the first lease. Subsequent payments would follow at the six-month mark and upon the expiration of the initial lease, aiming to ensure the sustainability and success of the initiative.
Discovery Phase and Pilot Implementation
The program is expected to undergo a 1-3 month discovery phase, with an estimated cost of $15,000 to gather feedback on how the incentives could impact the housing market. Following this phase, a financial incentive amount and the tenant recruitment process will be defined for the pilot implementation.
Community Feedback and Concerns
While the proposal has garnered support from various community members, including Airbnb owners and operators, some have raised concerns about the need for such incentives. Chip Craig, owner of Greybeard Realty and Rentals, criticized the program during a recent meeting, citing the market’s natural transition towards long-term rentals.
Rising Demand and Market Dynamics
The push to convert Airbnb properties into affordable housing units comes at a time when the short-term rental market in Buncombe County is experiencing significant growth. Data revealed a 112% increase in nightly demand for short-term vacation rentals in February 2024 compared to 2019, indicating a shift in the market dynamics.
Impact on Rental Market
Local real estate experts have noted a trend of Airbnb properties transitioning back to the long-term rental market as demand fluctuates. Fully furnished rentals that were previously used for short-term stays are now being adapted for long-term tenancy, showcasing the evolving nature of the rental landscape in the region.
Occupancy Rates and Market Stability
Despite the surge in short-term rental demand, occupancy rates for Airbnbs have remained relatively stable at around 40%, highlighting the challenges in achieving high occupancy levels consistently. This trend underscores the need for adaptable housing solutions to meet the changing needs of the community.
Future of Affordable Housing Initiatives
As Buncombe County prepares to vote on the Airbnb conversion program, stakeholders continue to assess the potential impact of such initiatives on the local housing market. With a focus on affordability and sustainability, the proposed program seeks to provide a viable pathway to address the housing crisis in the region.
