Airbnb pumped $240 million into Rhode Island’s economy in 2024, according to a new report from the company.
The popular short-term rental platform states that it supports approximately 3,000 jobs in Rhode Island and generates an estimated $142 million in labor income for the state.
Visitors using Airbnb aren’t just staying in homes – they’re spending big in Rhode Island communities. On average, guests shell out $660 on restaurants, entertainment, shopping, and other local businesses during their stays in Rhode Island.
Lisa Cohen, speaking for Airbnb, shared with What’sUpNewp that the company helped generate over $65 million in total tax revenue for Rhode Island in 2024.
The impact isn’t limited to the Ocean State. Across the US, Airbnb reports that travel through its platform created more than $90 billion in economic activity last year, supporting over a million jobs nationwide.
However, the company raises concerns about strict short-term rental rules in some major cities, suggesting they might be putting the brakes on economic growth.
A study mentioned in the report indicates these regulations could be costing cities up to $2.4 billion in yearly economic activity, including $1.6 billion in lost guest spending at local businesses.
Over-regulation leads to major cities putting at risk $2.4B in economic activity
While many communities continue to benefit from tourism on Airbnb, a new study by leading economic consulting firm Charles River Associates commissioned by Airbnb finds that over-regulation may cost some major cities billions of dollars.
In New York City, Philadelphia, Boston, and New Orleans, strict short-term rental rules led to these cities potentially losing as much as $2.4 billion in economic activity annually combined – including $1.6 billion in forgone guest spending at local restaurants, shops, and entertainment venues5.
Local businesses that support home sharing – such as cleaners, maintenance providers, and laundry services – are also missing out, having potentially lost an estimated $150 million annually in revenue in these cities.
The report also finds that hotels were the primary beneficiaries of strict short-term rental laws – at the expense of nearly everyone else: renters, visitors, local residents, and local governments. Ultimately, as travel demand remained strong, fewer accommodation options, particularly in New York City pushed hotel prices higher – forcing many guests to spend more on lodging and less in the communities they came to explore – all without a meaningful impact on housing affordability or availability.
According to the report, local governments may have lost nearly $200 million in tax revenue each year, with New York City alone forfeiting $82 million – money that could have been used to build more affordable housing and help alleviate the ongoing housing crisis. These regulations, ostensibly put in place to improve housing affordability and availability, have not netted the intended results. Rent in New York City following Local Law 18, for example, has reached record heights, and vacancy rates remained unchanged.
This forfeited economic opportunity comes at the same time that cities face growing deficits, putting jobs and municipal services at risk.