In 2024, Airbnb reached a significant milestone with its 2 billionth guest arrival. Wisconsin retirees Tim and Theresa marked this occasion by staying at a popular Airbnb in Sandy, Utah. Their travel is part of a broader trend where guests across the United States are using Airbnb to reconnect with family and explore new places, contributing significantly to local economies.
Recent estimates indicate that Airbnb-related travel generated over $90 billion in economic activity in the U.S. during 2024. This figure reflects contributions from guests, hosts, and the businesses they support. On average, guests spent more than $775 per trip on local services such as dining, entertainment, and shopping. This spending supported over one million jobs nationwide and generated more than $52 billion in labor income.
Airbnb's impact extends beyond traditional tourist areas. Nearly half of guest spending occurred within the neighborhoods of their accommodations, bringing economic benefits to less-visited areas. Additionally, travel on Airbnb contributed over $25 billion in tax revenue across the country, including $2.4 billion in tourism-related taxes collected by Airbnb for hosts.
However, a study by Charles River Associates highlights potential losses due to strict short-term rental regulations in cities like New York City, Philadelphia, Boston, and New Orleans. These regulations could cost these cities up to $2.4 billion annually in economic activity and lead to lost revenue for local businesses supporting home sharing.
The report suggests that hotels benefit most from these regulations while other stakeholders face negative impacts. The restrictions have not significantly improved housing affordability or availability as intended; instead, they have led to higher hotel prices without addressing rent increases or vacancy rates.
Local governments may be missing out on nearly $200 million annually in tax revenue due to these regulations. In New York City alone, this amounts to an estimated loss of $82 million each year—funds that could support affordable housing initiatives amid ongoing budget deficits.
Airbnb's economic contributions are widespread across the U.S., boosting local economies and generating essential revenue for state and local governments.