Document Type
Article
Publication Date
2025
DOI
10.1007/s00168-024-01328-4
Publication Title
Annals of Regional Science
Volume
74
Issue
1
Pages
6 (1-33)
Abstract
Short-term rentals such as Airbnb have grown substantially in recent years. In this study, we investigated the effect of Airbnb rentals on neighboring house prices in Hampton Roads, Virginia. We focus on three different measures of Airbnb activity to obtain more robust results. Our measures include active Airbnb listings, active listings with at least one reservation, and the sum of reservations over three different periods. Consistent with previous literature, our main results show that prior Airbnb rental activity has a positive impact on the surrounding housing sales prices. Furthermore, the localized impact diminishes over geographic space (i.e., distances greater than 500 m). We also examine how Airbnb rental activity impacts house prices across the price distribution of home sales, using quantile regression. We find that the effect is strongest for higher-priced homes, while lower-priced houses are less impacted by Airbnb rentals.
Rights
© 2025 The Authors.
This article is licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original authors and the source, provide a link to the Creative Commons license, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.
ORCID
0000-0003-4216-4452 (Zhang)
Original Publication Citation
Safari, N., Zhang, L., & Komarek, T. M. (2025). The impact of short-term rental activity on house prices: Evidence from coastal Virginia. Annals of Regional Science, 74(1), 1-33, Article 6. https://doi.org/10.1007/s00168-024-01328-4
Repository Citation
Safari, Navid; Zhang, Lei; and Komarek, Timothy M., "The Impact of Short-Term Rental Activity on House Prices: Evidence from Coastal Virginia" (2025). Finance Faculty Publications. 45.
https://digitalcommons.odu.edu/finance_facpubs/45