Minding the Gap: Applying a Rent Gap Analysis for Short-Term Rentals in Puerto Rico

Janis Arrojado
Short-term rentals have generated increasing controversy over the impacts they have on local residents, the economy, and communities. Empirical research has shown that short-term rentals have the potential to contribute to gentrification and displacement through creating a rent gap, which is the difference between potential ground rent and actual ground rent. I explore these issues by analyzing short-term rental revenue flows in Puerto Rico to examine the rent gaps induced by short-term rentals
more » ... and the impacts these rent gaps have within Puerto Rico. Debates have sparked in Puerto Rico over issues of gentrification and displacement of local residents due to short-term rentals, so it is crucial to understand factors that cause displacement from short-term rentals. This research adds to the growing works of analyzing the economic impacts of short-term rentals, and contributes to the limited research of short-term rentals in the Caribbean and global south.
doi:10.17615/v5xk-mf88 fatcat:uevodfoxjbf5pgwvaevau2a23m