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Airbnb guests spend less money in black and Hispanic neighborhoods

Last year, Airbnb partnered with the NAACP to help encourage more people of color to list their properties on the short-term rental site. The hope was that this would benefit not only African-American and Hispanic property owners, but also nearby businesses given that 50% of guest spending occurs in the neighborhoods where guests stay, according to Airbnb.

However, the spillover spending effect is much greater in predominantly white neighborhoods compared to black or Hispanic neighborhoods, according to a study published this week by Purdue University Krannert School of Management professor Mohammad Saifur Rahman and Ph.D. student Mohammed Alyakoob.

Users of the home-sharing platform generally eat at local restaurants near where they are staying.

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