Airbnb and VRBO: the impact of short-term tourist rentals on residential property pricing

David Wyman, Chris Mothorpe and Brumby McLeod

Current Issues in Tourism, 2022, vol. 25, issue 20, 3279-3290

Abstract: The contemporary phenomenon of Airbnb, VRBO and peer-to-peer home sharing markets has generated considerable controversy regarding positive and negative community impacts. Our study examines the economic motives and costs of short-term rental properties. Using home sales data from the City of Isle of Palms, SC, we find short-term rental properties sell at a price premium relative to long-term rentals and owner-occupied properties providing confirmatory evidence for why residential property owners select into short-term residential property operation. We also find no pricing impact associated with proximity to short-term rental properties indicating homebuyers are not concerned with the perceived community nuisances. The positive economic return accruing to short-term rental properties suggests the short-term rental marketplace will continue to develop as a strategic competitor to traditional tourist lodging operators.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2019.1711027 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rcitxx:v:25:y:2022:i:20:p:3279-3290

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20

DOI: 10.1080/13683500.2019.1711027

Access Statistics for this article

Current Issues in Tourism is currently edited by Jennifer Tunstall

More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().