the Impact of Increased Usage of Airbnb in New York, USA, on Housing Markets and Social Dynamics of Local Communities and Resulting Local Regulation

Neha Madakasira , Professor Mary Boyes, Honors College, Virginia Commonwealth University, 701 W. Grace St., Richmond, VA 23220

Airbnb, a website that allows for people to rent out their homes to tourists, has risen in popularity and brought about changes in how tourists interact with and impact the area that they visit.  By analyzing trends in various cities across the United States, I drew connections between how tourists impacted the housing markets, social dynamics and regulations that have come about as a result of the influx of tourists staying in these Airbnb in these cities. In order to do so, I aggregated research that followed housing trends of various cities in response to increased Airbnb usage as well as established local government responses. I discovered trends that apply specifically to New York and found strategies that the local government can utilize in order to minimize the negative impacts that Airbnb has on local citizens. My findings displayed that in major cities, apartments are being made into Airbnb, taking away from the housing market and leading to increased competition and rent prices. Similarly, Airbnb usage leads to changes in the social dynamics by increasing tourists in a typically residential area, which leads to overcrowding and increased traffic. These drawbacks create difficulties for local residents and must be controlled in order to ensure that cities are not overridden by tourists. Finally, I learned that many cities have taken measures to curb Airbnb growth by limiting the number of days that a house can be rented out in a year. The research paper concludes that the best way to control Airbnb growth is through regulation and taxes on Airbnb hosts, which should eventually stabilize the housing market. 

Additional Abstract Information

Presenter: Neha Madakasira

Institution: Virginia Commonwealth University

Type: Poster

Subject: Economics

Status: Approved

Time and Location

Session: Poster 5
Date/Time: Tue 12:30pm-1:30pm
Session Number: 4143