West 11 residential area, A luxury building in downtown Miami is expected to break ground this summer, promising “endless indulgences.” It will have an entertainment center, dining room and a resort pool with private lounges – none of the amenities will be free. But these apartments are designed to appeal to more than just Miami residents. The tower is part of a new trend in which developers are building residential apartments Airbnb, allowing them to be rented 365 days a year. The project even boasts a short-term rental platform as a branding partner.
Ryan Shear, managing partner of Property Markets Group, the tower's developer, said the idea of an apartment complex built for Airbnb appears to have attracted investors: West Eleventh's 659 units are near as sold out, with an average price of around $800,000. Buyers can choose to live there full-time, but their apartment fees must be paid to a concierge, who handles the logistics of renting out their apartment for short-term stays on Airbnb, from From check-in to cleaning.
Miami is the starting point for a new experiment in urban development promoted by Airbnb. More than 10 apartment buildings are under development or have opened in the city, like West Eleventh, which will offer sleek apartments designed to be easily rented by owners for short-term, occasional or all the time. ONE January report from ISG World, a luxury real estate company based in Florida, shows nearly 8,000 potential short-term rental apartments planned for downtown areas in Miami . Developers aim to enable storage without the hard work—and true passive rental income doesn't require property owners to lift a finger.
To travelers, the resulting package may sound like a familiar concept: a hotel. But it marks a push for a new type of accommodation for Airbnb. The platform started as an affordable way for travelers to stay in spare bedrooms, but it has since grown into a behemoth that is transforming neighborhoods with rentals The sleek home is decorated to appeal to luxury travelers, spring breakers and bachelorette parties.
That's great for Airbnb's bottom line, but it leaves many locals angry and complaining about House prices and rents increased as trash, noise and dangerous parties Guests can sometimes bring their own. These downtown Miami buildings — an experiment in a new type of quasi-hotel — are underway as cities around the world look to curb short-term rentals to combat costs housing is increasing. Perhaps they could come up with a way around the regulations that have blocked short-term rentals and landlords in some places, and create new types of real estate for guests, rather than draining the housing supply Present. But in this yet-to-be-tested experiment, some housing experts say it's possible that Airbnb developments could also reduce the supply of new housing for long-term residents.
Jesse Stein, Airbnb's head of global real estate, said the company doesn't see these developments as a reversal of the unique style of lodging that comes from checking in with hosts instead of concierges. . “You are still with the landlord,” Stein said. “We don't look at it as a hotel. We still see it as an individual house.”
The fact that purpose-built Airbnb apartments have sold so quickly shows how many people want the opportunity to become short-term rental hosts, Stein said. “This proves the point that there is a huge demand for a flexible lifestyle,” she said. More hosts mean more bookings and fees for Airbnb, which is trying to maintain growth and reported a 17% increase in 2023 revenue over the previous year.
Short term rental Business is booming in Miami, helping make the city a testing ground for new ideas like the Airbnb tower. It is Airbnb's fourth fastest-growing market in the US, according to AirDNA, which tracks short-term rental platforms. Winter with perfect summer weather and growing art and technology scene offers many reasons to visit. Living part-time in Miami has always been normal for snow lovers, and the city is also full of real estate investors from Latin America and Europe.
