And It Introduces a Different Kind of Supply Into Urban Markets Worldwide
Discussion of Airbnb’s expansion strategy tends to focus on highly visible initiatives — services, experiences, artificial intelligence.
Less attention has been paid to a quieter development: Airbnb now operates a dedicated marketplace through which renters can search for apartment buildings that permit part-time hosting.
In practical terms, Airbnb is positioning itself not only as a platform for travel, but also as part of the residential decision — where people choose to live.
The company says its “Airbnb-friendly buildings” programme has grown from roughly 175 buildings to nearly 1,300. It also reports partnerships with several of the largest publicly listed apartment ownership companies in the United States, as well as 16 of the country’s 50 largest multifamily property managers. Expansion has extended beyond the US into markets including the United Kingdom, Brazil and Canada.
Airbnb does not disclose the number of apartments inside those buildings. However, these are professionally managed residential blocks, often containing dozens or hundreds of units. This suggests that the potential inventory is significant.
For short-term rental managers operating in urban markets — whether in North America, Europe or Latin America — the scale deserves careful attention.
How the Programme Works
The model is structured and formal.
A residential building chooses to join the programme. Tenants are then permitted to host on Airbnb on a part-time basis, within clearly defined limits.
According to Airbnb, building owners and managers receive:
- A dashboard showing which residents are hosting and on which dates.
- The ability to set annual night limits (for example, a maximum number of nights per year).
- Building-wide guest rules (such as quiet hours or bans on events).
- The option to take a share of the booking revenue generated by residents.
Hosting is therefore integrated into the lease agreement, rather than operating outside it.
Airbnb describes the key innovation as the creation of a marketplace that gathers participating buildings in one place, making them easier for renters to find. The company presents this as solving a simple problem: how to identify apartment buildings that officially allow hosting.
Institutional Participation
In US terminology, many of the participating owners are REITs — Real Estate Investment Trusts. A REIT is a publicly listed company that owns income-producing property, often at large scale. For international readers, the important point is that these are large, professional property owners.
The programme is therefore embedded within institutional housing portfolios, not informal rental stock.
Airbnb also notes that the programme now includes some for-sale developments, such as condominiums and townhomes. In these cases, developers may design the building rules from the beginning to allow hosting.
This means the initiative is not limited to rental housing.
Evidence of Momentum
Airbnb reports guest rating averages of 4.8 out of 5 across more than 17,000 reviews within the programme. Hosts rate guests at an average of 4.9. The company says that property owners often begin with a small group of buildings and later expand participation across their portfolios.
Revenue sharing between resident hosts and building owners can vary. The share retained by the building may influence how many residents choose to host.
This suggests that property owners view the programme not only as a resident amenity, but also as a potential additional income source.
Strategic Context
Airbnb publicly links the programme to housing affordability and flexibility. The company notes that a large proportion of renters spend more than 30 per cent of their income on rent and that hybrid work remains common.
From a structural perspective, the initiative creates hosting supply that is:
- Pre-approved by building ownership.
- Subject to formal limits.
- Visible to property managers.
In cities where short-term rental activity has faced regulatory restriction — particularly in apartment buildings — this structure provides Airbnb with inventory that has explicit permission from the property owner.
This dynamic is relevant not only in the United States, but also in international cities where multifamily buildings often prohibit short-term rentals unless the building itself agrees.
Competitive Implications for Professional Operators
The supply profile differs from that of professionally managed short-term rental portfolios.
Most participating residents host part-time and operate a single unit. They are unlikely to manage pricing continuously or treat hosting as a full-time business.
The competitive effect is therefore unlikely to be constant throughout the year.
Airbnb has emphasised major events — such as international sporting tournaments or large concerts — as moments when demand rises sharply and additional hosting activity can be activated. In the interview, the company mentioned raising awareness among residents in event markets ahead of expected demand spikes.
For professional operators, this suggests that additional supply may appear during peak periods.
Such periods often generate a significant share of annual revenue.
The actual impact will vary by city and will depend on:
- How many participating buildings exist locally.
- What proportion of residents actively host.
- What night limits are imposed.
Airbnb has not publicly disclosed these figures.
A Broader Shift
There is also a brand dimension.
“Airbnb-friendly” buildings are marketed as part of a flexible urban lifestyle. Hosting is presented as compatible with hybrid work and with offsetting housing costs.
In practical terms, Airbnb is extending its presence into the housing decision itself, not only the travel booking.
This represents a deeper integration into urban housing ecosystems.
What This Means for Short-Term Rental Managers
The programme is unlikely to replace professional operators on a year-round basis.
It does, however:
- Introduce institutional, permissioned supply into urban markets.
- Provide Airbnb with a more stable pathway in regulated environments.
- Create potential competition during peak demand periods.
- Expand across multiple countries and housing systems.
The initiative is not highly visible, but it is structural.
For managers operating in dense, event-driven markets — in the US and internationally — it is prudent to incorporate this supply into competitive analysis rather than overlook it.
Thibault Masson is a leading expert in vacation rental revenue management and dynamic pricing strategies. As Head of Product Marketing at PriceLabs and founder of Rental Scale-Up, Thibault empowers hosts and property managers with actionable insights and data-driven solutions. With over a decade managing luxury rentals in Bali and St. Barths, he is a sought-after industry speaker and prolific content creator, making complex topics simple for global audiences.
