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

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