Unraveling the dynamic Airbnb-gentrification interrelation before and after the COVID-19 Pandemic: Evidence from Beijing, China

Abstract

<p>Arising as an efficient and flexible model of the rental business amidst the rising asset economy, short-term-rental (STR) platforms such as Airbnb are prevalent globally and have induced neighborhood changes in many aspects. Debates on Airbnb-induced <a href="https://www.sciencedirect.com/topics/social-sciences/gentrification" title="Learn more about gentrification from ScienceDirect's AI-generated Topic Pages">gentrification</a> concern scholars and policymakers worldwide. Nonetheless, most existing studies consider it a unidirectional process, and the dynamic interactions and mutual influence between Airbnb and gentrification remain unexamined. To address this salient lacuna, this study unravels the changing dynamic of Airbnb-gentrification interactions in central Beijing during the COVID-19 pandemic. Through matching housing transaction records in the secondary market and Airbnb's data, we develop two indexes and employ a series of regression models, as well as difference-in-difference estimation to unravel the variegated Airbnb-gentrification patterns, their interrelation, and the impacts brought by the pandemic. Results reveal a general pattern of intensifying gentrification caused by clustering Airbnb. Meanwhile, in neighborhoods experiencing different stages of gentrification, heterogeneous outcomes of Airbnb development are unveiled concerning impacts on rentals and housing prices during the pandemic. Our findings provide a more nuanced understanding of the dynamic Airbnb-gentrification interrelation and add to the ongoing debates on “fifth-wave gentrification”.<br></p>