Unraveling the dynamic Airbnb-gentrification interrelation before and after the COVID-19 Pandemic: Evidence from Beijing, China

Arising as an efficient and flexible model of the rental business amidst the rising asset economy, short-term-rental (STR) platforms such as Airbnb are prevalent globally and have induced neighborhood changes in many aspects. Debates on Airbnb-induced gentrification concern scholars and policymakers worldwide. Nonetheless, most existing studies consider it a unidirectional process, and the dynamic interactions and mutual influence between Airbnb and gentrification remain unexamined. To address this salient lacuna, this study unravels the changing dynamic of Airbnb-gentrification interactions in central Beijing during the COVID-19 pandemic. Through matching housing transaction records in the secondary market and Airbnb's data, we develop two indexes and employ a series of regression models, as well as difference-in-difference estimation to unravel the variegated Airbnb-gentrification patterns, their interrelation, and the impacts brought by the pandemic. Results reveal a general pattern of intensifying gentrification caused by clustering Airbnb. Meanwhile, in neighborhoods expe-riencing different stages of gentrification, heterogeneous outcomes of Airbnb development are unveiled con-cerning impacts on rentals and housing prices during the pandemic. Our findings provide a more nuanced understanding of the dynamic Airbnb-gentrification interrelation and add to the ongoing debates on "fifth-wave gentrification".