CREJ

evenue generated by the shar-

ing economy totaled $15 bil-

lion in 2014, a figure expected

to grow to $335 billion by

2025, propelled by exponential

growth of Uber and that $31 billion

gorilla in the room – Airbnb. A 2016

National Multifamily Housing Coun-

cil survey found that just 1 percent

of apartment owners currently allow

home sharing, while 42 percent con-

ceded their residents list units on Airb-

nb despite leases explicitly prohibiting

short-term rentals. Preliminary num-

bers from the 2017

NMHC survey found

that the majority

of renters under 54

years old would be

open to allowing

short-term rentals

in their apartment

communities, with

81 percent of those

under 25 responding

favorably to the idea.

Nearly half of all

renters spend more

than 30 percent of their income in rent,

while one in four renters spend more

than half of their income, the 2017

State of the Nation’s Housing report

published by Harvard University found.

As the percent of rent-burdened house-

holds remains near historic highs,

the growing share of renters looking

to Airbnb to make ends meet should

come as little surprise to landlords.

While the nation’s largest landlords

have waged fierce battles against the

short-term rental giant, it is appar-

ent that home sharing is not simply a

trend, but rather a lasting staple in the

multifamily industry.

A 2015 Pew Research survey found

that 11 percent of Americans have used

a home-sharing service like Airbnb,

which is projected to grow to 27 per-

cent by 2021. Revenues generated by

Airbnb hosts in the U.S. increased 140

percent in 2016 from the prior year to

$5.7 billion, while the number of active

listings increased 70 percent to 650,000.

Given the growing acceptance of the

Blake Hayunga, Virtu Investments

Virtu Investment’s Archer Tower property in Denver teamed up with Pillow Residential to enable tenants to rent their units on Airbnb, facilitating a revenue-sharing agreement between the owner, Pillow

Residential and the tenant. Pillow coordinates advertisement, key swap and professional cleaning. Virtu is offering residents discounted monthly lease rates in exchange for participation.

Please see Page 30 Airbnb: The $31 billion gorilla in the room

INSIDE

The U.S. is enjoying the third-longest economic expansion in our history. 101 continuousmonths PAGE 6 Great design is not a function of a big budget, but rather the result of creative consideration. Final thoughts PAGE 29 Developers can enhance the inherent sustain- ability advantages of apartment living. Green initiatives PAGE 24 November 2017

Brian Mooney

Senior associate,

Moran & Co.,

Denver