earticle

영어

Recently, online platforms based on the Peer-to-Peer (P2P) market, which enables to make transaction between individuals, have been the main players in the Internet market. Above all, the P2P rental market known as the sharing economy that allocates the extra resources of individuals to those who need them is a hot topic in academia. There are the conflicting opinions about the sharing economy. On one hand, it is argued that the creation of a surplus by using individual unutilized resources can increase an allocative efficiency of the economy. On the other hand, some researchers criticize that the fact that anyone with durable goods can do their own business causes overheats the market of durable goods. Airbnb, which is represented by the sharing economy in the accommodation market, also failed to avoid the criticism. Complaints about local residents have been continuously raised that Airbnb is disrupting the housing market by raising rents and housing prices. Cities around the world recognized the issue and have begun to introduce regulations on short-term rental to prevent the overheated housing market from Airbnb. Thus, this paper estimates the impact of Airbnb's entry on house prices including the underlying mechanisms that drive up the value of ownership of durable goods. We then identify which type of houses causes market overheats. In addition, we quantify the general effect of short-term rental policies in the U.S.. We construct a panel data structure to test empirical models. We estimated the penetration of Airbnb as a cumulative measure of Airbnb listing supply by using Airbnb's crawled snapshot from Insideairbnb at a specific time. The data related to the housing market was obtained from Zillow, which specializes in residential property transaction. We added the data that control the heterogeneous characteristics of zipcode from Census Bureau: education and income level, unemployment rate, total population, and housing status. We find that the entry of Airbnb leads to an increase in house prices with difference-indifference (DID) estimates. Further, we do additional analysis to identify underlying mechanisms in terms of the demand and supply of housing. In consequence, the entry of Airbnb decreases the supply of housing owing to homeowners holding their properties. In contrast, it increases the number of housing sales indicating the demand of the property increases. Thus, Airbnb makes the housing market to a market favorable to sellers that are more likely to raise house prices. To explore which type of houses increases in house prices, we decompose the house price index based on the number of bedrooms. We use each house price index (one, two, three and four bedrooms) as dependent variable of separate models. As a result, Airbnb listings are positively associated with house prices with one and two bedrooms while negatively associated with house prices with more than three bedrooms. To uncover the asymmetric effects, we focus on owner-occupied units that indicate the purpose of housing consumption: high owneroccupancy rate is related to the housing demand for consumption whereas low owner-occupancy rate is related to the housing demand for investment. If Airbnb enhances the incentive to invest the residential properties, the housing demand for investment would have led to Airbnb listings. We find that the housing demand for investment with one and two bedrooms generate Airbnb listings, whereas that with two and three bedrooms is not associated with the newly registered Airbnb listings. The results are consistent with the previous analysis that Airbnb listings only increase in the prices of houses with one and two bedrooms. Finally, we quantify the general effect of short-term rental policies against Airbnb. We review policies related to short-term rental of 20 major cities in the U.S. in time-ordered sequence and focus on the first regulation or policy that was conscious of Airbnb. It covers requirements of taxes, certificate and license, limitations of property type, days a year, and districts that are available at short-term rental business. We collect the date of the first announcement of policies in 10 cities from Google Search. We then create regulation as the binary variable whether a policy is declared or not in a given zipcode. We then consider an interaction term between the number of Airbnb listings and regulation. In consequence, we find that short-term rental polices attenuate the effect of Airbnb on house prices.