How Short-Term Rentals are Changing the Neighborhood

This paper examines how short-term rentals are changing living conditions and the composition of population in affected parts a town. First, to analyze relation between quality, distance, rents, we develop spatial monocentric city model with varying housing quality levels. Second, for 200 m grids Berlin (Germany) 2019, show that proportion low medium residential units correlates positively near center probability Airbnb listings number these listings, but negatively suburbs. Third, applying fixed effect IV strategies, investigate impact on almost 450 planning areas years 2016–2019. We offers increase residents long periods residence reduce low-quality environments, do not find above-average effects socially weak groups. JEL Classification: R21, R31, Z32