While no one can deny the growing popularity of Airbnb, some local governments believe that the company is contributing to the shortage of affordable housing by changing scarce apartments into hotel rooms or turning quiet neighborhoods into "party hot spots." Wall Street Journal staffer Laura Kusisto reports on the backlash Airbnb is receiving from local governments and how San Francisco start-up Host Compliance is helping to crack down on Airbnb abuses by pointing out listings that have violated local laws.

Host Compliance Chief Executive Ulrik Binzer explained his reason for creating the company:

...Mr. Binzer said his company’s aim isn’t to drive Airbnb out of business. Rather, “It became apparent to me that our city was just making decisions based on anecdotes and hearsay. There was no data to back up that there was a need to ban it,” he said.

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