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The Impact of Home Sharing on Residential Real Estate Markets

Author

Listed:
  • Helen X. H. Bao

    (Department of Land Economy, University of Cambridge, Cambridge CB3 9EP, UK)

  • Saul Shah

    (Department of Land Economy, University of Cambridge, Cambridge CB3 9EP, UK)

Abstract

This paper explores the effects of home-sharing platforms in general and Airbnb in particular on rental rates at a neighbourhood level. Using consumer-facing Airbnb data from ten neighbourhoods located within large metropolitan areas in the U.S. between 2013–2017, as well as rental data from the American online real estate database company, Zillow, this paper examines the relationship between Airbnb penetration and rental rates. The results indicate that the relationship is not as unanimous as once thought. Viewing the relationship at an aggregate level, an approach used by many researchers in the past, hides the complexities of the underlying effects. Instead, Airbnb’s impact on rental rates depends on a neighbourhood’s individual characteristics. This study also urges policy makers to create tailor-made solutions that help curb the negative impacts associated with the platform whilst still harnessing its economic benefits.

Suggested Citation

  • Helen X. H. Bao & Saul Shah, 2020. "The Impact of Home Sharing on Residential Real Estate Markets," JRFM, MDPI, vol. 13(8), pages 1-18, July.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:8:p:161-:d:389675
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    References listed on IDEAS

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    10. Zhenpeng Zou, 2020. "Examining the Impact of Short-Term Rentals on Housing Prices in Washington, DC: Implications for Housing Policy and Equity," Housing Policy Debate, Taylor & Francis Journals, vol. 30(2), pages 269-290, March.
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    Cited by:

    1. Časni Anita Čeh & Filić Josipa, 2022. "Tourism housing price nexus," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 8(2), pages 53-65, December.
    2. Rita Yi Man Li, 2022. "Housing Real Estate Economics and Finance," JRFM, MDPI, vol. 15(3), pages 1-3, March.
    3. Emeka Ndaguba & Cina Van Zyl, 2024. "Short-Term Accommodations and Long-Term Housing Challenges in the Margaret River Tourist Destination: A Perspective of Population Movement and Pricing," Social Sciences, MDPI, vol. 13(7), pages 1-20, July.
    4. S. G. Sternik & N. B. Safronova, 2021. "Financialization of Real Estate Markets as a Macroeconomic Trend of the Digital Economy," Studies on Russian Economic Development, Springer, vol. 32(6), pages 676-682, November.

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