In a new study, Loyola University professors John D. Levendis, Ph. D., and Mehmet F. Dicle, Ph. D. investigated whether changes in New Orleans’ rental rates are correlated to Airbnb activity, or whether they are part of overall price trends.
Rental prices have been increasing throughout the country for the last several years. While New Orleans is no exception to this trend, rental rates have decreased in most area zip codes in the last six months. In the meantime, vacancy rates have been fairly constant at their average rates.
For each zip code in New Orleans, the professors investigated whether changes in rental prices are correlated with changes in Airbnb activity, after controlling for regional rental rate changes (outside New Orleans). The report found that rental rates and Airbnb presence are not correlated, and concluded that Airbnb does not have a discernible impact on rents in any of New Orleans’ zip codes.