Understanding patterns and competitions of short‐ and long‐term rental markets: Evidence from London

Abstract In this article, we compare short‐term rental (STR) and long‐term (LTR) price patterns in London using one of the most popular STR platforms, Airbnb, LTR platform, Zoopla property website. This research aims to enhance our understanding both patterns; as well dynamics specifically, predictive modeling analyze how might evolve. We used coefficient variation correlation analysis examine short‐ markets. Then developed a rent‐based gravity model predict pattern that is sensitive changes visits tourist destinations. Based on analysis, concluded that: (1) prices tend be higher overall with an indication volatility (less stability) compared LTR; (2) there statistical evidence supporting arguments markets are indeed competition; (3) proposed provides robust prediction characteristic higher‐priced properties found geographically concentrated core city areas those surrounding residential easy access attractions.