On the relationship between short-term rentals and gentrification: the case of Airbnb in Munich (Germany)

Abstract

This paper explores the relationship between Airbnb and gentrification by studying Munich, which is at the forefront of the short-term rental market in Germany. We investigate both the Airbnb market and the functional rent gap, providing a spatial comparison. The results show an overlapping of gentrification and Airbnb in the central districts, but there are also functional rent gaps in the peripheries. However, high Airbnb densities do not always go hand in hand with gentrification. We also identify a considerable seasonality on the Airbnb market, that adds a temporal dimension to the phenomena. Drawing on this, we call for a city-wide monitoring of these aspects to increase transparency and provide a database for urban policy. By exploring the case of Munich, we contribute to the ongoing discussion, as other (German) cities develop in the same direction on the Airbnb market as the Bavarian capital. Apart from that, our quantitative model is also transferable to other cases.

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“…Thus, few research studies consider a regular grid in hexagons [18] or even squares through hotspot analysis [19,20], covering a smaller surface than the administrative statistical areas. Depending on the different types of Airbnb rentals-entire home/apartment, private room and shared room-other studies analyse them together [21] or separately (e.g., [22]), or even focus on 'home sharing'-one or two rooms rented in the same household property- [23] or those dwellings that are rented out in full [24,25].…”

“…Indicator systems have been extensively analysed using density maps and, to a lesser extent, cluster maps [9,22,28,30,34,36,37]. In addition, the considered variables in each study have been likewise analysed using correlations [23,25,38,39,42,43,47] or regression models [8,9,28,30,34,35,40,43,48], and even both statistics used for the same study [12,36,37]. It should be noted that univariate global spatial autocorrelations (Global Moran's Index)-rather than the bivariate one [9,28,30,49]-have been extensively performed in the studies [16,[34][35][36][37]41].…”