Noisebnb: An Empirical Analysis of Home-Sharing Platforms and Residential Noise Complaints

Societal externalities stemming from digital multisided platforms on nonparticipants have received increasing attention from scholars in recent years. In this paper, we investigate one such spillover, how the emergence of home-sharing platforms (viz., Airbnb) affects noise complaints in densely populated urban areas. Urban noise is a stalwart social problem in urban living, and anecdotal evidence has suggested that the entry of home-sharing platforms has significantly exacerbated urban noise. We empirically examine the relationship between the entry of Airbnb and noise complaints in New York City (NYC). Leveraging the phased expansion of Airbnb into different locations at different times and a difference-in-differences approach, we find that the arrival of Airbnb is associated with a significant decrease in the rate at which city residents file residential noise complaints. Furthermore, we find that the decrease in noise complaints is intensified (i) in locations where more tourist attractions exist and (ii) when occupancy rates of rentals are lower. This suggests that the effect is driven by limited physical occupancy, via either tourist stays or unmet capacity. Our work contributes to broader scholarship by addressing the myth and merit of Airbnb disturbance and informing regulators who are considering the cumulative impact of home-sharing platforms on quality of life in urban areas.

History: Bin Gu, Senior Editor; Yan Huang, Associate Editor.