29 Pages Posted: 24 Oct 2016
Date Written: October 20, 2016
Rental prices have been increasing throughout the country for the last several years. While New Orleans is no exception to this trend, rental rates have decreased in most area zip codes in the last six months. In the meantime, vacancy rates have been fairly constant at their average rates. In this study, we investigate whether any increases in New Orleans’ rental rates are correlated to Airbnb activity, or whether they are part of overall trends in prices. For each zip code in New Orleans, we investigated whether changes in rental prices are correlated with changes in Airbnb activity, after controlling for regional rental rate changes (outside New Orleans). We were unable to find any scientifically valid evidence that rental rates and Airbnb presence are correlated, and conclude that Airbnb has no discernible impact on rents in any of New Orleans’ zip codes.
Keywords: Airbnb, Economic Impact Study, New Orleans
JEL Classification: R11
Suggested Citation: Suggested Citation
Levendis, John and Dicle, Mehmet F., The Neighborhood Impact of Airbnb on New Orleans (October 20, 2016). Available at SSRN: https://ssrn.com/abstract=2856771