Abstract
This paper empirically studies the impacts of short-term rental and home-sharing activities on neighborhood-level outcomes. It focuses on the city of Madrid and builds a comprehensive dataset of Airbnb activity and core neighborhood attributes (house prices, consumption amenities, and jobs) to argue that the increasing presence of touristic apartments affects each one of these core neighborhood attributes. I find that Airbnb activity increases house prices, consumption amenities that are highly demanded by tourists (restaurants), and low-wage jobs. In addition, I use data on cross-neighborhood mobility patterns to show that, directly and indirectly by its effect on house prices, Airbnb activity reduces population density by preventing some of the in-migration of would-be new neighborhood residents.
