As cities worldwide grapple with the impact of short-term rentals, a study led by Gorkem Turgut (G.T.) Ozer, an assistant professor of decision sciences at the UNH Peter T. Paul School of Business and Economics, challenges common perceptions about the noise impact of peer-to-peer home-sharing platforms in urban areas.
The Study and Its Findings
Published in Information Systems Research, Ozer's research, conducted in collaboration with Nanyang Technological University and George Mason University, reveals surprising results: the growth of Airbnb properties in New York City residential neighborhoods is associated with fewer noise complaints. The study, which analyzed data from 2007 to 2019, found:
- A 5.1% decrease in noise complaints, equivalent to 7,845 fewer complaints per year, associated with Airbnb's entry into New York City.
- The decrease was more pronounced in areas with lower Airbnb occupancy rates and multiple tourist attractions.
- Noise complaints increased in areas where Airbnb rentals housed larger groups or were farther from tourist attractions.
- An increase in street noise complaints after Airbnb's entry, suggesting a shift of noise from residential properties to tourist areas.
Explaining the Phenomenon
Ozer attributes the overall decline in noise complaints to several factors:
- Many Airbnb properties are likely owned by investors rather than traditional home-sharers, resulting in lower occupancy rates.
- Airbnb's policies and rating mechanisms motivate guests to behave considerately.
- Empty properties during off-peak seasons contribute to lower average noise levels.
Additionally, Ozer emphasizes the nuanced nature of these findings.
"Overall, the average effect is negative, but there are subsamples of data where we see an increase in noise complaints," he says. "We're talking about an average in New York City, which includes tens of thousands of Airbnbs in hundreds of neighborhoods."
Broader Implications
While the research suggests that noise may not be the most significant issue associated with Airbnb's expansion, Ozer notes that resources currently focused on noise regulation might be better allocated to other urban issues such as trash, traffic, crime, housing affordability, gentrification, and displacement.
For more details read the full UNH Today article about Ozer's findings.
