Kneecapping our best intentions

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1. 

   Deborah Fulghieri

    /  June 22, 2019

   I recently learned that U.C. Berkeley has a homeless student population estimated at 10% of undergraduates, and 20% of graduate students. Students spend inordinate time and money searching, and if they find it, paying for housing. AirBnB takes houses off the rental market, reducing supply and increasing relative demand and actual rents. There is even a homeless students’ union on the berkeley dot edu website.

   As Chapel Hill taxes rise with rapid growth, fixed-income and lower-income homeowners sell. Sometimes the buyers are Chapel Hill residents investing for a higher return and lower risk on their money than stocks, especially in these times of low interest rates. The student rental market has been profitable to investors. AirBnB seems to be even more profitable, but if it takes rental units off the student market, student rents could rise, as in Berkeley. UNC doesn’t yet have a homeless student problem, but AirBnB could motivate investors to remove student rentals from the market. And the town and county will not reap any benefits– rather, Town Council might be motivated to raise taxes again in order to subsidize lower-income housing, as Economic Development officer Dwight Bassett has recently proposed.