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Taming Airbnb: Toward guiding principles for local regulation of urban vacation rentals based on empirical results from five US cities

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  • Wegmann, Jake
  • Jiao, Junfeng

Abstract

Urban vacation rentals, a phenomenon that has grown explosively very recently, bring benefits to cities but also impose quality of life and housing market impacts on neighborhoods. As a consequence, cities are beginning to grapple with creating regulatory regimes for managing this new land use and its encroachments on residential areas. This article uses webscraped data from Airbnb, the industry leader, to analyze the geographical patterns and concentrations of these impacts in five US cities: Austin, Boston, Chicago, San Francisco, and Washington, DC. It uses the findings to put forth four general principles for cities seeking to manage impacts imposed by Airbnb and its competitors. These are that webscraping is an imperfect but relatively cheap and effective means of gathering locally specific data; that “spiky” usage patterns dictate a microgeographic approach to regulation; that meaningful regulation necessitates dedicated enforcement, likely paid for with permit fees; and that it is desirable to distinguish between “mom-and-pop” hosts and those operating at a commercial scale.

Suggested Citation

  • Wegmann, Jake & Jiao, Junfeng, 2017. "Taming Airbnb: Toward guiding principles for local regulation of urban vacation rentals based on empirical results from five US cities," Land Use Policy, Elsevier, vol. 69(C), pages 494-501.
  • Handle: RePEc:eee:lauspo:v:69:y:2017:i:c:p:494-501
    DOI: 10.1016/j.landusepol.2017.09.025
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    References listed on IDEAS

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    1. Cameron, Anna & Khanal, Mukesh & Tedds, Lindsay M., 2022. "Managing Airbnb: A Cross-Jurisdictional Review of Approaches for Regulating the Short-Term Rental Market," MPRA Paper 111535, University Library of Munich, Germany.
    2. Geoff Boeing, 2020. "Online rental housing market representation and the digital reproduction of urban inequality," Environment and Planning A, , vol. 52(2), pages 449-468, March.
    3. Esther Gal‐Or, 2021. "How does competition among lodging sharing platforms affect welfare and profits?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 45-62, February.
    4. Juan Luis Jiménez & Armando Ortuño & Jorge V. Pérez-Rodríguez, 2022. "How does AirBnb affect local Spanish tourism markets?," Empirical Economics, Springer, vol. 62(5), pages 2515-2545, May.
    5. Yifei Jiang & Honglei Zhang & Xianting Cao & Ge Wei & Yang Yang, 2023. "How to better incorporate geographic variation in Airbnb price modeling?," Tourism Economics, , vol. 29(5), pages 1181-1203, August.
    6. Kim, Daehwan & Seo, Ducksu & Kwon, Youngsang, 2021. "Novel trends in SNS customers in food and beverage patronage: An empirical study of metropolitan cities in South Korea," Land Use Policy, Elsevier, vol. 101(C).
    7. Bruno Bruna & Faggini Marisa, 2020. "Sharing Competition: An Agent-Based Model for the Short-Term Accommodations Market," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-13, April.
    8. Jancsik, András & Michalkó, Gábor & Csernyik, Márta, 2018. "Megosztás megosztottság nélkül - az Airbnb és a budapesti szálláshelypiac átalakulása [Shared but not divided: Airbnb and transformation of the accommodation market in Budapest]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 259-286.
    9. Florian Hawlitschek & Nicole Stofberg & Timm Teubner & Patrick Tu & Christof Weinhardt, 2018. "How Corporate Sharewashing Practices Undermine Consumer Trust," Sustainability, MDPI, vol. 10(8), pages 1-18, July.
    10. José António C. Santos & Manuel Á. Fernández-Gámez & Miguel Ángel Solano-Sánchez & Francisco José Rey-Carmona & Lorena Caridad y López del Rio, 2020. "Valuation Models for Holiday Rentals’ Daily Rates: Price Composition Based on Booking.com," Sustainability, MDPI, vol. 13(1), pages 1-15, December.
    11. Shijie Sun & Shengyue Zhang & Xingjian Wang, 2021. "Characteristics and influencing factors of Airbnb spatial distribution in China’s rapid urbanization process: A case study of Nanjing," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-19, March.
    12. Mody, Makarand & Suess, Courtney & Dogru, Tarik, 2019. "Not in my backyard? Is the anti-Airbnb discourse truly warranted?," Annals of Tourism Research, Elsevier, vol. 74(C), pages 198-203.
    13. Boeing, Geoff & Besbris, Max & Wachsmuth, David & Wegmann, Jake, 2021. "Tilted Platforms: Rental Housing Technology and the Rise of Urban Big Data Oligopolies," SocArXiv 8jrfe, Center for Open Science.
    14. Seungbee Choi & Jongho Won, 2023. "Exploring the Survival Mechanisms of Short-Term Rentals in Virginia: A Comparative Analysis of Rural versus Non-Rural Markets," Sustainability, MDPI, vol. 15(16), pages 1-17, August.
    15. Michał Żemła, 2020. "Reasons and Consequences of Overtourism in Contemporary Cities—Knowledge Gaps and Future Research," Sustainability, MDPI, vol. 12(5), pages 1-20, February.
    16. DiNatale, Sadie & Lewis, Rebecca & Parker, Robert, 2018. "Short-term rentals in small cities in Oregon: Impacts and regulations," Land Use Policy, Elsevier, vol. 79(C), pages 407-423.
    17. Chaang-Iuan Ho & Tzong-Shyuan Chen & Chin-Pei Li, 2023. "Airbnb’s Negative Externalities from the Consumer’s Perspective: How the Effects Influence the Booking Intention of Potential Guests," Sustainability, MDPI, vol. 15(11), pages 1-28, May.
    18. Alvanchi, Amin & Jafari, Mohammad Amin & Shabanlou, Mohammad & Meghdadi, Zeinab, 2021. "A novel public-private-people partnership framework in regeneration of old urban neighborhoods in Iran," Land Use Policy, Elsevier, vol. 109(C).
    19. Dolnicar, Sara, 2019. "A review of research into paid online peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 75(C), pages 248-264.
    20. Salvador Garcia-Ayllon, 2018. "Urban Transformations as an Indicator of Unsustainability in the P2P Mass Tourism Phenomenon: The Airbnb Case in Spain through Three Case Studies," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    21. Thomas Aguilera & Francesca Artioli & Claire Colomb, 2021. "Explaining the diversity of policy responses to platform-mediated short-term rentals in European cities: A comparison of Barcelona, Paris and Milan," Environment and Planning A, , vol. 53(7), pages 1689-1712, October.
    22. Agustín Álvarez-Herranz & Edith Macedo-Ruíz, 2021. "An Evaluation of the Three Pillars of Sustainability in Cities with High Airbnb Presence: A Case Study of the City of Madrid," Sustainability, MDPI, vol. 13(6), pages 1-35, March.
    23. Gurran, Nicole & Zhang, Yuting & Shrestha, Pranita, 2020. "‘Pop-up’ tourism or ‘invasion’? Airbnb in coastal Australia," Annals of Tourism Research, Elsevier, vol. 81(C).
    24. Izabela Jonek-Kowalska & Radosław Wolniak, 2022. "Sharing Economies’ Initiatives in Municipal Authorities’ Perspective: Research Evidence from Poland in the Context of Smart Cities’ Development," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
    25. Laura Serrano & Antonio Sianes & Antonio Ariza-Montes, 2020. "Understanding the Implementation of Airbnb in Urban Contexts: Towards a Categorization of European Cities," Land, MDPI, vol. 9(12), pages 1-21, December.

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