Seeing as there are only so many properties in a city whereas in theory the whole world is a source for guests, does it make sense to posit that there is a limit to the increase in supply (ie hosts) whereas demand (ie guests) will continue to grow?
The Airbnb market has low barriers to entry and (fairly) transparent information, so one can conclude that market competition will balance supply and demand at a competition-determined price.
That being said, who the eff ARE these people who are offering 1 bedroom apartments close to subway for $40/night in my market area?
Foolish ones who believe if they start cheap they will build enough reviews to make millions.
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