Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/222726
Title: A STUDY ON HOW AIRBNB AFFECTS THE RENTAL MARKET - THE CASE OF NEW YORK
Authors: LEE WEI YAN
Keywords: Real Estate
Cristian Badarinza
2019-2020 RE
RE
Issue Date: 2019
Citation: LEE WEI YAN (2019). A STUDY ON HOW AIRBNB AFFECTS THE RENTAL MARKET - THE CASE OF NEW YORK. ScholarBank@NUS Repository.
Abstract: The sum of recent innovations in peer-to-peer real estate markets is collectively known as the sharing economy. The sharing economy has emerged as an alternative platform for individuals to acquire, provide or share temporary access to under-utilised goods and services which is usually facilitated by a community-based online platform. This study explores the case of Airbnb which is one of the successful examples tapping on the concept of shared temporary accommodation. Since 2008, Airbnb has been increasingly becoming more popular due to its unique business model that offers low prices and, often more importantly, direct interaction with the community. However, despite its popularity, Airbnb is known as a disruptive innovation which has raised concerns of both the government and the public, regarding the impact it has on cities as a whole, and local real estate markets in particular. While there are numerous studies on the impact of Airbnb, they mainly focus on the tourism accommodation sector and lack the empirical analysis of the impact on the rental market. Since numerous critics have highlighted that Airbnb may have a negative impact on the rental market, this paper seeks to study the relationship between Airbnb and the rental market in New York in a regression framework. Based on the regression results, it concludes that an increase in the Airbnb presence in a given location does indeed have a negative impact on the rental market by increasing the rent prices. The effects are heterogeneous and accrue especially on the properties with higher rents which are mostly located in the central areas. Further analyses are conducted, confirming the general observation that even a moderate increase in Airbnb listing can have strong effects on the rental market.
URI: https://scholarbank.nus.edu.sg/handle/10635/222726
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Lee Wei Yan 2019-2020.pdf1.35 MBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

57
checked on Feb 2, 2023

Download(s)

29
checked on Feb 2, 2023

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.