Impact of the Sharing Economy on Housing Markets

The rise of the sharing economy, particularly platforms like Airbnb and VRBO, has significantly disrupted housing markets across the United States. As more properties are converted into short-term rentals, there is an observable shift in the availability of long-term rental units, which puts upward pressure on rental prices. For instance, the short-term rental market in 2023 saw revenues growing to $64 billion, which reflects the increasing trend in vacation listings across the country. Although Airbnb argues that these rentals can boost local economies, the underlying issue remains a supply problem exacerbated by restrictive local housing policies that prioritize current homeowners over new development.