TY - JOUR
T1 - What happens when Airbnb comes to the neighborhood
T2 - The impact of home-sharing on neighborhood investment
AU - Xu, Minhong
AU - Xu, Yilan
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/5
Y1 - 2021/5
N2 - 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.
AB - 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.
KW - Gentrification
KW - Home-sharing
KW - Neighborhood redevelopment
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U2 - 10.1016/j.regsciurbeco.2021.103670
DO - 10.1016/j.regsciurbeco.2021.103670
M3 - Article
AN - SCOPUS:85102775072
SN - 0166-0462
VL - 88
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
M1 - 103670
ER -