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Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb’s Impact on Housing Prices in Sydney

Authors :
William Thomas Thackway
Matthew Kok Ming Ng
Chyi-Lin Lee
Vivien Shi
Christopher James Pettit
Source :
ISPRS International Journal of Geo-Information, Vol 11, Iss 1, p 65 (2022)
Publication Year :
2022
Publisher :
MDPI AG, 2022.

Abstract

Over the last decade, the emergence and significant growth of home-sharing platforms, such as Airbnb, has coincided with rising housing unaffordability in many global cities. It is in this context that we look to empirically assess the impact of Airbnb on housing prices in Sydney—one of the least affordable cities in the world. Employing a hedonic property valuation model, our results indicate that Airbnb’s overall effect is positive. A 1% increase in Airbnb density is associated with approximately a 2% increase in property sales price. However, recognizing that Airbnb’s effect is geographically uneven and given the fragmented nature of Sydney’s housing market, we also employ a GWR to account for the spatial variation in Airbnb activity. The findings confirm that Airbnb’s influence on housing prices is varied across the city. Sydney’s northern beaches and parts of western Sydney experience a statistically significant value uplift attributable to Airbnb activity. However, traditional tourist locations focused around Sydney’s CBD and the eastern suburbs experience insignificant or negative property price impacts. The results highlight the need for policymakers to consider local Airbnb and housing market contexts when deciding the appropriate level and design of Airbnb regulation.

Details

Language :
English
ISSN :
22209964
Volume :
11
Issue :
1
Database :
Directory of Open Access Journals
Journal :
ISPRS International Journal of Geo-Information
Publication Type :
Academic Journal
Accession number :
edsdoj.f204970017ed479291938b06792bf26b
Document Type :
article
Full Text :
https://doi.org/10.3390/ijgi11010065