What happens when Airbnb comes to the neighborhood: The impact of home-sharing on neighborhood investment

Minhong Xu and Yilan Xu

Regional Science and Urban Economics, 2021, vol. 88, issue C

Abstract: Home-sharing increases the potential economic returns to residential properties. We examine how the expansion of Airbnb has stimulated neighborhood investment. Our instrumental variable estimates show that a one-percent increase in Airbnb listings raised the number of residential renovation projects by 0.527 percent and the value of retail renovation investment by 3.691 percent in the following quarter. Meanwhile, the net growth of liquor, retail food, and entertainment business licenses increased by 2.067, 3.933, and 0.755, respectively. The investment effects were driven disproportionately by commercial hosts operating multiple listings and were more prominent in declining neighborhoods.

Keywords: Neighborhood redevelopment; Home-sharing; Gentrification (search for similar items in EconPapers)
JEL-codes: L8 O1 R2 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:88:y:2021:i:c:s0166046221000302

DOI: 10.1016/j.regsciurbeco.2021.103670

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