The Impact of Home Sharing on Residential Real Estate Markets

Helen X. H. Bao and Saul Shah
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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

JRFM, 2020, vol. 13, issue 8, 1-18

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.

Keywords: sharing economy; time series analysis; random effect panel model; rents (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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