Airbnb started in 2008 during the Great Recession, at a moment in which people across the US and around the world were looking for new ways to earn extra income. Now, in the midst of a potential economic downturn, hosting is once again proving to be a vital tool to earn. According to a recent survey conducted by Airbnb, 41 percent of Hosts in the US reported that one of the reasons they host is to earn money to help navigate rising prices1.
Along with existing Hosts using hosting to keep up, we are also seeing more people turning to hosting for the first time.
Today, Airbnb is sharing new findings showing that new Hosts began opening their doors amidst growing inflation in Q2 2022, among other factors – as well as new insights into how these new Hosts are sharing their space as well as their ability to earn.
More people start hosting as inflation increases
Inflation has been climbing higher around the world. At the same time, more people have begun hosting, specifically in top tourism destination countries with high growth in inflation. While there are other factors that contribute to Host growth – including seasonality, demand and product initiatives – according to Airbnb’s analysis, on average, a one percentage point increase in the inflation rate in a top Airbnb market was correlated with a nearly four percentage point increase in the number of new Hosts in that country for Q2 20222.
In the United States, where inflation increased by 9.1 percent in June 2022, the number of new Hosts grew by more than 50 percent in Q2 20223, compared to Q2 2021 – and this same trend was observed around the world, including:
Brazil, with 11.89 percent increase in inflation in June 2022 and more than 50 percent increase in new Hosts in Q2 2022;
Spain, with 10.2 percent increase in inflation in June 2022 and nearly 70 percent increase in new Hosts in Q2 2022;
Ireland, with 9.1 percent increase in inflation in June 2022 and more than 50 percent increase in new Hosts in Q2 2022;
United Kingdom, with 9.4 percent increase in inflation in June 2022 and more than 40 percent increase in new Hosts in Q2 2022;
Canada, with 8.1 percent increase in inflation in June 2022 and nearly 100 percent increase in new Hosts in Q2 2022;
Italy, with 8 percent increase in inflation in June 2022 and more than 60 percent increase in new Hosts in Q2 2022;
Mexico, with 7.99 percent increase in inflation in June 2022 and more than 40 percent increase in new Hosts in Q2 2022;
Germany, with 7.6 percent increase in inflation in June 2022 and more than 70 percent increase in new Hosts in Q2 2022;
New Zealand, with 7.3 percent increase in inflation in June 2022 and more than 30 percent increase in new Hosts in Q2 2022;
Australia, with 6.1 percent increase in inflation in June 2022 and more than 30 percent increase in new Hosts in Q2 2022;
South Korea, with 6 percent increase in inflation in June 2022 and more than 40 percent increase in new Hosts in Q2 2022; and
France, with 5.8 percent increase in inflation in June 2022 and more than 30 percent increase in new Hosts in Q2 2022.
For new Hosts, it’s mortgages on their mind
Hosts around the world have long shared that hosting helps them to afford their home – with the need to pay for their mortgage or rent even serving as a reason why many began hosting in the first place. According to an Airbnb survey, nearly 40 percent of Hosts in the US said that the income earned through hosting has helped them stay in their home in 20214.
Now, with the cost of homeownership rising, new Hosts in the US are not only turning to hosting, but also may be hosting more frequently once they get started, to increase their earning potential and cover a larger mortgage. Regions with the greatest hikes in local residents’ mortgage payments also saw an increase in earnings for typical new Hosts in Q2 2022 – suggesting more hosting activity5.
In fact, according to Airbnb’s analysis, in Q2 2022, a $1 rise in the average American’s monthly mortgage payment – due to the hike in mortgage interest rates from three percent to six percent – was correlated with a 26-cents increase in a new typical Host’s earnings for the quarter6.
New Hosts see the opportunity to earn
Inflation may be rising, but so too is the income Hosts are earning. As Airbnb has reported, in 2021, the typical Host in the US earned over $13,800 – an increase of 85 percent over 2019. The typical income of $13,800 represents over two months of pay for the median US household.
For those who have begun hosting recently due to the changes in cost of living, the ability to earn is still strong: New Hosts earned a combined total of over $1.8 billion globally in 2021, up more than 30 percent from 2019.
And this opportunity has continued into 2022 – including for younger Hosts, many of whom have discovered hosting as a way to fulfill their dreams even as new financial responsibilities and burdens stack up. In the first three months of 2022 alone, Hosts under 30 in the US combined earned approximately $200 million – after earning approximately $775 million total in all of 2021.
Hosts are sharing the space they have to get started now
With these new economic pressures, more people are not only looking to start hosting, but also to do so flexibly – leveraging the space they have to earn, and quickly. New listings that were activated and booked in Q1 2022 are getting booked faster compared to a year ago, with the average time to get a first booking for the majority of new listings being about a week.
While these changes in cost of living may be recent, hosting has long served as a resource for people around the world amidst personal shifts in financial situations. Take Host Lucy in Birmingham, England, who decided to convert her barn’s outhouse into a tiny home when she was furloughed from her job in the hospitality industry at the height of the COVID-19 pandemic. It was a leap amidst the uncertainty of losing her paycheck, but as she saw the demand for staycations across the United Kingdom as lockdown continued, she knew that her backyard could fill a need while paying off the investment needed for renovations in time. And one year into her hosting journey, Lucy has seen that return – earning £43,2057 to date – especially as events have returned: She most recently welcomed the family of a New Zealand athlete during the Commonwealth Games.
And for those with more limited space to share, private room listings – which offer singular rooms to travelers in a Host’s home – are also a simple (and increasingly popular) way to earn. In the US alone, the following states have welcomed the greatest increase in new private room listings in Q2 2022, compared to Q2 20218:
South Dakota IndianaConnecticut Arizona Alaska Nebraska OregonMontana
To learn more about hosting, go to airbnb.com/host and get started.
The post While inflation in the US rises, new Hosts grow in Q2 2022 appeared first on Airbnb Newsroom.
