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Engaging with the platform economy: Short-term Rental Housing

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When tourists move in: how should urban planners respond to Airbnb?

Gurran, N., & Phibbs, P. (2017). 

Gurran and Phibbs put together a paper that was well researched, written and formulated on a topic area as new to the game as Airbnb, which has been growing at a rate much faster than researchers and policy makers can mobilize to formulate substantial precedent research that informs a best practise. The paper examines the different ways in which urban planners should respond to Airbnb’s implications for urban planning and policy. The major question here is how significant are these impacts? Do they generate neighbourhood impacts that require a new land use planning response? Do they create pressure on the permanent rental housing supply? Do they offer flexible income to help hosts make their own homes more affordable? The findings, based in Sydney, Australia, were interesting but ultimately still surface level. They show that the bulk of Airbnb listings aggregate in areas of high tourist visitation but also extend beyond the inner core to residential areas already affected by tight rental demand. There were concerns by local neighbours about tourist behaviour concerning noise, congestion, and safety. The paper suggests a potential for removal of entire homes from the permanent rental supply to increase pressures on rent, which allegedly there is not a significant benefit for offsetting homeowner mortgage costs by posting one’s home on Airbnb. The final recommendation is to develop a cohesive policy framework that monitors the impact of Airbnb rentals on the availability and cost of lower-cost permanent rental accommodations, as well as commit to ongoing research an analysis so to fully understand the implications for local neighbourhoods and housing markets. 

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