Residences of the Eleventh West, A luxury building in downtown Miami scheduled for construction this summer promises “infinite indulgences.” It will feature an entertainment center, a food hall and a resort-style pool with private lounges; No comforts are spared. But these condos are designed to appeal to more than just Miami residents. The tower is part of a new trend in which developers are building apartments made for Airbnb, allowing them to be rented 365 days a year. The project even has the short-term rental platform as a brand partner.
The concept of a built-for-Airbnb apartment complex appears to have won over investors: West Eleventh’s 659 units are nearly sold out, at an average price of about $800,000, says Ryan Shear, managing partner at Property Markets Group, the developer. of the tower. Buyers can choose to live there full-time, but their condo fees pay for a concierge who handles the logistics of renting out their short-term units on Airbnb, from check-in to cleaning.
Miami is ground zero for a new urban development experiment catalyzed by Airbnb. More than 10 condo buildings are in development or already open in the city that, like West Eleventh, will offer stylish apartments designed so owners can easily rent them for short stays, either occasionally or full-time. TO january report by ISG World, a Florida-based luxury real estate firm, shows nearly 8,000 units that could be converted into short-term rentals slated for construction in downtown Miami neighborhoods. The developers aim to enable accommodation without the hard work and passive rental income that doesn’t really require the owner to lift a finger.
To travelers, the resulting package may seem like a familiar concept: the hotel. But it marks a push toward a new type of stay for Airbnb. The platform started as an affordable way for travelers to stay in spare rooms, but has grown into a behemoth that transforms neighborhoods filled with stylish whole-house rentals decorated to attract luxury travelers, spring breakers, and bachelorette parties.
That’s been great for Airbnb’s bottom line, but it’s angered many locals, who complain about rising home and rental prices, as well as the trash, noise and dangerous parties guests can sometimes bring. . These buildings in downtown Miami, an experiment in a new type of quasi-hotel, are underway as cities around the world look to restrict short-term rentals to combat rising housing costs. Perhaps they could offer a way around regulations that have locked down short-term rentals and their hosts in some places, and create new types of guest properties, rather than eating up the current housing supply. But in this untested experiment, some housing experts say developments built for Airbnb may also end up reducing the supply of new housing for long-term residents.
Jesse Stein, Airbnb’s global head of real estate, says the company doesn’t see these developments as an investment in the kind of one-time stays you get by checking in with a host instead of a concierge. “You’re still left with a host,” Stein says. “We don’t consider it a hotel. “We still see it as an individual home.”
Stein says the fact that purpose-built Airbnb condos have sold quickly shows how many people want the opportunity to become short-term rental hosts. “This demonstrated the concept that there is a huge demand for a flexible lifestyle,” she says. More hosts mean more bookings and fees for Airbnb, which is trying to sustain its growth and reported 2023 revenue up 17 percent from a year earlier.
Short term rental Business is already booming in Miami, helping to make the city a testing ground for new ideas like Airbnb towers. It is home to the fourth-fastest-growing market for Airbnb in the US, according to DNA of the air, which tracks the short-term rental platform. Winters with perfect summer weather and a thriving arts and tech scene provide plenty of reasons to visit. Living in Miami part-time has always been common for winter travelers, and the city also has many real estate investors from Latin America and Europe.