REPORT OCTOBER, 2016 Host Employment in New Orleans
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- Rafe Richards
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1 REPORT OCTOBER, 2016 Host Employment in New Orleans 2
2 Introduction Since 2009, New Orleans residents have been welcoming guests into their homes on Airbnb. It is a city celebrated for its rich history, vibrant arts scene, and for opening its arms to visitors from all over who seek to enrich themselves with its unique culture. It s also a city that understands the importance of economic resilience. As technology has evolved along with travelers desire for more authentic experiences, home sharing has become an important part of the New Orleans community. There s no one reason that people open their home to guests on Airbnb. Some want to take part in the City s famed Southern Hospitality. Others are still rebuilding their finances after Hurricane Katrina and the Great Recession. Despite their diverse backgrounds, income and employment, hosts have one thing in common: the vast majority rely on home sharing to pay basic household expenses, help cover their rent or pay their mortgage. The story about hosts in New Orleans is a story about artists, musicians, educators, and health workers welcoming others into their homes to share the city they love while helping make ends meet. This report provides a snapshot of our current home sharing community, and we hope it helps policymakers and the public better understand why we re so committed to working on rules that are fair for all. Summary of Key Findings Airbnb hosts are four times as likely to work in the arts or creative sector and five times as likely to work in education or healthcare. 71 percent of New Orleans hosts use the extra income they earn from Airbnb to pay for typical household expenses like rent, groceries, bills, etc. Hosts are predominantly middle income households for whom home sharing is an important supplement to their salary; about 35 percent of hosts earn a combined household income below the national median. 3
3 Employment Airbnb is a lifeline for New Orleans creatives, freelancers, educators and healthcare workers. 45 percent of hosts are non traditionally employed, working as freelancers, entrepreneurs, self employers or part time workers. For these hosts (and others), Airbnb income is a way to help support alternative work arrangements or launch a new business. Artists and creatives comprise the largest demographic of Airbnb hosts at 30 percent. That makes hosts four times as likely to work in the creative sector than the average New Orleans resident. Those in the education and health services sector are five times as likely to host. WORK INDUSTRIES ACROSS NEW ORLEANS HOSTS 1 (excluding retirees) 1 Based on statistics from the Bureau of Labor and Management for the New Orleans MSA 4
4 Retirees and seniors Seniors are the fastest growing host age bracket in New Orleans, with 318 total hosts age 60 to 90, up more than 90% from Over the last 12 months, senior hosts in New Orleans have earned over $2.7 million. This supplemental income is particularly meaningful to the many seniors living on fixed incomes. It helps seniors pay their bills, fix up their homes and travel. Nationally, 41% of seniors have reported that hosting has helped them afford to stay in the homes where they ve often lived much of their lives. And 43% said they hosted to keep active or stay connected socially. Hosting is keeping me in my home. Arleen, 77, Airbnb Host, Faubourg St. John 5
5 Host Incomes and Financial Profiles New Orleans hosts are predominantly middle income households, for whom Airbnb income is a meaningful and important salary supplement. About 35% of hosts earn a combined household income below the national median of $53,500. For these hosts especially, Airbnb earnings help make ends meet. Across all hosts of all income brackets, the typical Airbnb host income of $10,080 each year represents, on average, a 21% raise. NEW ORLEANS HOSTS BY COMBINED HOUSEHOLD INCOME BRACKET Hosts tell us that they rely on Airbnb income to make ends meet, using the money to help pay for regular costs of living. 65% of New Orleans hosts consider their Airbnb income as supplemental income they rely on to make ends meet. On average, most hosts use their Airbnb income to pay for housing and other regular household expenses. HOW NEW ORLEANS HOSTS USE THEIR AIRBNB INCOME (average across hosts) 6
6 Baba Ken, Airbnb Host and craftsman, Pontchartrain Park 7
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