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

摘要

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.