The Sharing Economy and Housing Affordability: Evidence from Airbnb
62 Pages Posted: 25 Jul 2017 Last revised: 10 Apr 2018
Date Written: March 29, 2018
We assess the impact of home-sharing on residential house prices and rents. Using a dataset of Airbnb listings from the entire United States and an instrumental variables estimation strategy, we find that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in house prices at the median owner-occupancy rate zip code. The effect is moderated by the share of owner-occupiers, a result consistent with absentee landlords reallocating their homes from the long-term rental market to the short-term rental market. A simple model rationalizes these findings.
Keywords: Sharing Economy, Peer-To-Peer Markets, Housing Markets, Airbnb
JEL Classification: R31, L86
Suggested Citation: Suggested Citation