The moderating effects of Airbnb between urban conservation and housing rental market: A case study of Shanghai

Abstract

The advent of peer-to-peer (P2P) home-sharing platforms such as Airbnb has noticeably impacted the housing rental market, as they have caused an increase in short-term rentals (STRs). Despite a growing body of research showing a positive correlation between Airbnb and housing rentals, the role of urban conservation efforts has received limited attention. In this study, we examine the moderating effects of Airbnb on the relationship between officially designated conservation zones and the housing rental market using data from township-level observations in Shanghai. The empirical evidence demonstrates that both the presence of historic conservation areas and the number of Airbnb listings have a considerable positive impact on property rental pricing. Furthermore, there is a direct correlation between the presence of more extensive conservation areas and an increase in house rental prices. Heterogeneity effects are evident in several townships in Shanghai with different levels of Airbnb activity, as the moderating effects are significant in townships with a large number of Airbnb listings. These results suggest that rising housing rents cannot be attributed entirely to the proliferation of STR services facilitated by home-sharing platforms. Future regulations for the housing rental market should address the impacts of home-sharing accommodations and the preservation and revitalization of designated conservation zones.