MEASURING THE POTENTIAL IMPACT OF AIRBNB ACTIVITY ON ELLIS ACT EVICTION RATES IN LOS ANGELES
Szabo, Austin Ray
Ellis Act Evictions, evictions of rent-controlled units presuming the entire property is removed from the rental market, are rising in Los Angeles. This paper examines the potential impact of short-term rental services, such as Airbnb, on Ellis Act evictions in Los Angeles, under the hypothesis that Airbnb’s higher revenue potential may incentivize converting rental units into units used solely for profit under the Airbnb model. Working within this hypothetical framework, increased Airbnb activity would lead to higher rates of no-fault evictions. Airbnb data was acquired from Inside Airbnb and combined with Ellis Act data acquired through requests to various LA-area cities; American Communities Survey data served as a control. Using a robust OLS regression, I find a strong positive correlation between Ellis Act Evictions and Airbnb listings within zip code level analysis. I conclude that the impact of Airbnb on Los Angeles neighborhoods remains an emerging field of study, and that further research is needed to understand it.
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