There was a time was when renting an apartment in one a college town’s triple-deckers or two-family homes wouldn’t cost an arm and a leg.
Now, renting in Cambridge, Massachusetts, home to Ivy League Harvard University and MIT, feel like just that. Some say rental prices have surged because of short-term rental websites like Airbnb, where property owners can make more money renting out apartments or homes by the night instead of a yearlong lease.
The debate over services like Airbnb has raged for years in major cities.
The site is often criticized for essentially turning apartments into hotel rooms, putting upward pressure on housing costs and driving out longer-term tenants who can’t afford rising rents.
In the past 12 months, Airbnb said, there have been 90,000 guest arrivals in Cambridge through its service in the city of about 110,000.
The median rent has soared to a daunting $3,000 a month in Cambridge, according to real estate data provider Zillow. In Boston, which sees its population swell every September when students flock back, the median rent is $2,700.
Jennifer McConnell is an Airbnb host who rents out her a room in her Cambridge, Massachusetts, home to guests. She said she would have trouble covering her living expenses if not for the site
The debate over services like Airbnb has raged for years in major cities. The site is often criticized for essentially turning apartments into hotel rooms, putting upward pressure on housing costs and driving out longer-term tenants who can’t afford rising rents
The rental costs tend to surge near college towns like Cambridge, home to Ivy League Harvard University (pictured)
Jennifer McConnell, a high school Spanish teacher who rents out rooms in her Cambridge brownstone through Airbnb, said she’d have trouble covering her expenses if not for the site.
‘It’s been a game changer both financially, because it’s allowed me to stay in my home, but also emotionally because it’s filled up my home with guests,’ said McConnell.
Her guests have included a woman from Germany who stayed for seven weeks while taking a graduate course at Harvard.
Short-term rentals have caused enough concern in Cambridge that the city council last month approved new regulations requiring people offering short-term rentals to live in the same building and undergo an inspection once every five years.
Other college-towns like Boulder, home to the University of Colorado, and Chicago, home to Northwestern University, have implemented rules that require property owners to have a license to rent to visitors.
The median rent has soared to a daunting $3,000 a month in Cambridge, where Ivy League school MIT is located
Massachusetts Lodging Association President Paul Sacco hailed the Cambridge rules, saying they’re needed to prevent ‘illegal hotels’ in the city.
Airbnb said it is not to blame for spiking housing costs. Only a small percentage of the Cambridge housing stock, about 140 homes or apartments, are rented through its website for more than 172 nights a year, it said. That’s Airbnb’s estimate for someone who is effectively doing short-term rental as a business.
Event-heavy college towns near tourist destinations like Cambridge, next to Boston, particular feel the impact of raised costs.
Interest in renting rooms through Airbnb often jumps during graduation or a big football game, said Will Burns, public policy director for Airbnb.
Kirsten Rulf, a 36-year-old research fellow at Harvard Law School, said she used Airbnb for two weeks in August 2015 before finding permanent housing. The small, furnished room in a larger apartment cost her $1,500 for 14 nights, she said.
‘For me that was the best option, because hotels are super expensive, especially in August,’ said Rulf from Mendig, Germany.
A tour of Airbnb’s website reveals how much of a draw colleges are – at least according to those trying to rent out rooms.
‘Perfect spot to visit MIT, Harvard, BU (Boston University),’ reads one ad. ‘The house is within walking distance to the Princeton University Campus,’ reads another ad. A third boasts, ‘Great ”shotgun” style apartment on a nice street in New Haven which is a short ( 5min) walk to Yale.’
Some institutions, including Boston’s Emerson College, have even busted students for trying to rent out dorm rooms.
An agreement on graduate housing at Yale University states that while students are allowed to have guests for short visits, ‘Guests who pay rent and/or guests found through Airbnb or similar arrangements are prohibited.’
McConnell, the Cambridge resident who opens her home to Airbnb clients, said she’s OK with the city’s regulations but isn’t thrilled about the inspections. She said she also doesn’t fault Airbnb for the city’s soaring housing and rental costs.
‘The middle class person has a hard time finding a place,’ she said. ‘I don’t blame that on Airbnb. People couldn’t afford to rent those places anyway.’
McConnell said she doesn’t mind the new regulations that require short-term renters to live in the same building as their tenants. However, she isn’t a fan of the city’s inspection every five years