Airbnb, a leader in shared accommodation, made an initial public offering in the NASDAQ market in December 2020 and recorded a market capitalization of USD 113 billion, surpassing that of the global no. 1, the Marriott hotel chain. Airbnb is growing rapidly; thus, overseas researchers actively conduct studies analyzing the relationship between Airbnb and housing rent. Many studies have shown that shared accommodation impacts the increase in the rent of the houses in the vicinity. This result compels major cities to implement regulatory policies to control its side effects. However, a few studies have been conducted on the relationship between Airbnb and housing rent in the context of Korea.
Using 6,485 Airbnb data from January 2013 to December 2019, this study conducted an empirical analysis of the connection between the number of Airbnbs and monthly rent of apartments in Gangnam-gu, Seoul. Contrary to previous findings, this study found that Airbnb growth could have a negative effect on the monthly rent of local apartments while partly increasing consequences such as noise and parking, garbage, and security issues. This study suggests that Airbnb could cause a negative impact on the quality of living and economic growth.