Dynamics of the Sharing Economy in Short-Term Rentals

The sharing economy in the realm of short-term rentals has transformed global lodging markets by enabling peer-to-peer exchanges of underutilised residential space. Digital platforms connect hosts and guests through reputation systems, dynamic pricing algorithms and user reviews, fostering a market that blends aspects of hospitality, real estate and community participation. Rapid growth in listings has raised complex dynamics: hosts range from casual sharers to professional operators managing multiple properties; guests seek authenticity, convenience and value relative to traditional hotels; and local economies benefit from visitor spending while facing challenges such as housing scarcity and neighbourhood change. Regulatory responses—ranging from licensing schemes and day-cap limits to zoning restrictions—have emerged in many jurisdictions to balance innovation with housing affordability and urban equity. Technology underpins real-time analytics of supply, demand and pricing, yet also concentrates activity in popular destinations, triggering debates over gentrification, displacement and the financialisation of housing. Future trajectories hinge on evolving host professionalism, platform governance, regulatory frameworks and community engagement, underscoring the need for integrated research that spans economics, urban planning, sociology and policy studies.

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Dynamics of the Sharing Economy in Short-Term Rentals publication trend

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Technical terms

Short-term rental (STR): A lodging arrangement in which residential properties are rented for brief stays, typically under 30 days, via digital platforms.

Social exchange theory (SET): A framework for analysing perceived costs and benefits in interpersonal or community interactions, applied here to host–guest and resident–platform relations.

Day-cap regulation: A policy limiting the number of days per year that a property may be offered for short-term rental to curb market impacts.

Hedonic pricing model: An econometric technique that estimates the value of a good or service by decomposing it into constituent attributes, such as location, amenities and host ratings.

Professionalisation: The process by which casual hosts adopt commercial strategies—such as portfolio management and dynamic pricing—to operate short-term rentals as business ventures rather than occasional sharing.

References

1. Why do guests stay at Airbnb versus hotels? An empirical analysis of necessary and sufficient conditions. Journal of Innovation & Knowledge (2023).
2. The perceived impacts of short-term rental platforms: Comparing the United States and United Kingdom. Technology in Society (2024).
3. Regulating the sharing economy: The effects of day caps on short- and long-term rental markets and stakeholder outcomes. Journal of the Academy of Marketing Science (2024).