The Manhattan City Council member, Helen Rosenthal seems to agree that the report is well done. But, she adds this caveat:
But the White House’s toolkit falls woefully short in that it completely ignores a rapidly growing threat to affordable housing in New York City and across America: short-term rental of residences on platforms like Airbnb.But, we also have the problem that developers only want to build new "market rate" units for the "luxury" market, so when supply increases, it simply draws in more luxury tenants, increasing local rents.
In his op-ed, Jason Furman succinctly points out that “basic economic theory predicts that when the supply of a good is constrained, its price rises and the quantity available falls.” Airbnb is the prime offender of this basic economic tenet in that it facilitates the widespread removal of housing from the New York City market, constraining supply and driving rent through the roof.
It appears that, from London to Los Angeles, the West's major cities have encountered a strange happenstance. A v-shaped demand curve that just happens to be centered at the current level of supply.
What defines a "luxury" good? My stab at a definition would be, "A luxury good is a good that confers high status because of limited supply." We should probably put a moratorium on the production of new luxury goods until we can figure this mystery out.