Evidence of Impact
We assess the impact of home-sharing on residential house prices and rental rates. Using a comprehensive dataset comprised of Airbnb listings from the entire United States, we regress zipcode level house prices and rental rates on the number of Airbnb listings, using fixed effects to control for permanent differ- ences across zipcodes as well as arbitrary CBSA level time trends, and using an instrumental variable based on Google search interest for Airbnb to control for any remaining endogeneity. We find that a 10% increase in Airbnb listings leads to a 0.42% increase in rents and a 0.76% increase in house prices. Moreover, we find that the effect of Airbnb is smaller in zipcodes with a larger share of owner-occupiers, a result consistent with absentee landlords taking their homes away from the long-term rental market and listing them on Airbnb. We present a simple model that rationalizes these findings.
Through the WI Lens
This article is of particular relevance for hotels in particular and the hospitality industry in general. If it is proven further that Airbnb increases home prices and rental rates, suggesting that policy-makers and regulators will constrain its development – a move that is long-term positive for hotels and other “official” forms of accommodation. A 10% increase in Airbnb listings leading to a 0.39% increase in rents and a 0.64% increase in house prices (in a specific region in the US) may not seem like by a big increase, but it exacerbates issues of affordability that are politically and socially sensitive. Most likely, similar studies will now be undertaken in other regions and countries, encouraging policy-makers to rein in the development of Airbnb, or at the very least to stop the conversion of properties from long-term rental units to short-term rental units (therefore favouring hotels). One thing is sure: the backlash against Airbnb will intensify, prompting policy-makers to act.
What this article goes on to explain is how positive thinking – described here as ‘thriving’ – can counter the effects that come from the negativity outlined above, from reduced memory to diminished performance. Based on studying people in a series of organisations in different industries, one of the authors has found that people who attain this state are more resilient, experience less burnout, and are more confident in their ability to take control of a situation
“Behind the jargon what this is really about is how we address the challenge of biodiversity under threat, move away from fossil materials like plastic and concrete, and use nature in a sustainable way, all of which could be summed up by “living in harmony with nature”.”
“In the new ‘consensual contract’ between employer and worker, what’s required is a commitment from the employer to safeguard the wellbeing of their people, and a commitment in return from employees to take personal responsibility for their performance of their job.”
“Could loneliness not only be damaging our mental and physical health but also be making the world a more aggressive, angry place? And if so, what are the implications for a cohesive society and democracy?”
“On such fragile foundations are built the first steps towards a more ethical kind of business, and who knows what virtuous circles might result?”
“Scientific evidence recently emerged that, contrary to earlier beliefs, Covid-19 can be spread by tiny droplets that we breathe out when we respire, called aerosols.”
“Economic wellbeing is part of the story, but it is also about finding less stressful lifestyles, in which healthy diet figures as a meaningful measure of success.”
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“Looking at the bigger picture, putting the measures in this order represents a lost opportunity that the pandemic could have offered for a cultural pivot pivot towards getting people more focused on their health, a powerful statement of intent.”
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