is hosting in the suburbs sustainable?

[Mike896]

hi, I have a 4 bedroom house in the suburbs of LA and I currently have 2 rooms listed on Airbnb and another room rented out to a friend, which will soon turn into the 3rd Airbnb room.  So far, everything is going well.  The rooms are booked most of the time, the guests have been good (and happy), I think I'm doing all of the right things, and I'm a superhost. 

But, I'm starting to realize that this might not be sustainable.  I have no data to back this up; It's just a hunch. I believe that Airbnb's popularity is going to rise exponentially.  I wouldn't be surprised if the number of listings around me increased by 500% within the next few years and people are going to list their rooms for $10 per night.  They might think, "I'm broke and could use $300 per month".   And people like me who list their rooms for $50 per night would not get any bookings.

am I crazy to think this, or do some of you share the same concern?  I'm starting to think that the real winners for Airbnb hosts are the ones that have listings in prime spots, like near the beach, or downtown in a major city.  agree/disagree?

[Helen-And-Mario0]

I agree, that's why I do not own any share room setting, but if you live there, it doesn't really matter, the extras are like bonus. But I will not invest SFH to rent out for individual room. 

[Sarah977]

@Mike896  I'd say that any host who decides to do it for $10/night is the one who will find out that it's not sustainable. That doesn't add up to $300/month even if they're booked solid. By the time they deduct the extra utility costs, amenities like toilet paper and soap, airbnb's 3%fee, the cost of sheets and towels which need to be replaced from time to time unless you want to get bad reviews for worn, stained stuff, and maintainance and replacements for normal wear and tear, they'll soon find out it isn't worth it at all. Might take the financially clueless awhile to figure it out, though.