AOC's housing agenda under fire after NYC hotel rates jump 12%

Rep. Alexandria Ocasio-Cortez, D-N.Y., escalated her criticism of billionaires and short-term rental companies as the debate intensified over housing affordability and economic policy.

"Take Airbnb," Ocasio-Cortez wrote on X. "They heavily lobby politicians against passing housing laws to protect working class residents because it's bad for their business model."

The Washington Post editorial board called out the New York Democrat, writing, "Airbnb is a particularly strange example for the congresswoman. Her city effectively banned the platform in 2023 in response to a lobbying campaign by hotels." 

"Has housing become abundant and affordable in Gotham?" the Post continued. "Of course not, but taking thousands of units off the market has made it a lot harder to find a reasonably priced hotel. Room rates have risen 12.6 percent since the law took effect, compared to 3.6 percent nationwide."

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Ocasio-Cortez argued the short-term rental giant has expanded by benefiting from housing shortages and displacement in communities across the United States.

"Airbnb could not exist at its current scale and size without the housing market destabilizations, displacements, and exploits that are supercharging the evictions of working people everywhere from Puerto Rico to Jackson Hole," she said.

The comments came during an online exchange with Paul Graham, a prominent Silicon Valley entrepreneur and co-founder of Y Combinator, over whether billionaires can ethically earn their wealth through innovation and business growth.

"Sure you can earn a billion dollars," Graham said. "I've been teaching people how to do it for 20 years. The way you do it is to start a company that grows fast. You don't have to do anything bad to make a company grow fast. You just have to make something people want."

Ocasio-Cortez rejected Graham's argument, saying rapid corporate growth often depends on accumulating political and market power.

"Someone can certainly make a billion dollars. That's not the same thing as earning," Ocasio-Cortez wrote.

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"Growing fast and disrupting markets also often means chasing and wielding market power, political influence, and scale."

AOC argued younger Americans are increasingly locked out of homeownership because of investor activity and rising housing costs.

"Now young people are planning for a future where they will never be able to afford to own a home while others have 20 and live off renting it out to them at extortionate rates with zero protections," Ocasio-Cortez said.

"Yes, a tiny amount of people can make billions of dollars doing that. And millions of everyday Americans are bearing the cost."

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The exchange sparked criticism from investors and tech executives who defended Airbnb hosts and the broader startup economy. Michael Seibel, a partner at Y Combinator, argued many Airbnb users are ordinary homeowners attempting to supplement their income.

"The housing in Airbnb isn't controlled by some 'evil public corporation' - it's controlled by normal citizens trying to pay their bills," Seibel said.

Ocasio-Cortez later clarified that her criticism was aimed at larger systemic incentives rather than individual property owners.

"It's not about individual morality," Ocasio-Cortez said. "It's about exploiting the landscape."

Seibel later pushed back again, questioning whether users themselves bear responsibility for Airbnb's growth and success.

"Why are you ignoring the users of companies?" Seibel said. "Airbnb cannot survive without its users. Are they exploiting the landscape?"

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When reached for comment, Airbnb referred Fox News Digital to a social media post from Taylor Marr, the company's senior housing economist, who pushed back on claims that the platform is fueling the housing crisis and said many hosts rely on the income to offset rising living expenses and stay in their homes.

"Last year, the typical U.S. host on Airbnb made $16,000 for opening up their home for a few days a year," Marr said. "At a time of rising costs, that money is a lifeline."

"The idea that Airbnb causes the housing crisis is wrong," Marr said. "In the more than two years since NYC all but banned Airbnb, rent has gone up 8.1% - above the national average - while vacancies have gone down."

Fox News Digital reached out to and Rep. Ocasio-Cortez for comment, but did not immediately receive a response.