Don't Blame Airbnb for Rising Rents

I recently returned from a trip to Japan. I’ve been going there for many years, so I can confirm that traveling in that country -- especially for longer periods of time -- is infinitely easier than it was just a decade ago. One of the main reasons is Airbnb. Ten years ago, lodging in Japan was limited to overpriced hotels or unreliable Craigslist sublets. Now, with a few button clicks on a smartphone or laptop, you can book a reasonably priced, centrally located private apartment with all the furnishings of a well-kept Japanese home. A portable Wi-Fi unit is often included, allowing you to dispense with the need to pay for an international cell-phone data plan.

Airbnb’s success in Japan is due in large part to the government’s far-sighted embrace of the room-rental service. In mid-2017 the government passed a law legalizing Airbnb, subject to the approval of local authorities. Japanese apartment owners can rent out their rooms for up to 180 days out of the year -- much more than in many other cities. This leniency is just one factor powering a record boom in tourism to the Land of the Rising Sun: