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Hotels and boarding houses do make an imposition on their surrounding communities. Having taxes and zoning requirements on them to compensate for that is reasonable, and most of AirBNB's "edge" comes from violating those laws.



This should be an easy concept to grasp, but it seems that unless one has lived in an environment affected by this, they cannot understand.


I am not arguing there is no causal effect, I am arguing that it is not a externality.


Noise pollution and additional crime experienced by neighbors from the short-term guests staying at Airbnb locations would qualify as an externality. Higher occupancy in Airbnb locations stresses capacity in pools, parking, gyms and other amenities of the neighborhood or complex is also an externality.




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