I agree that the rise of the share economy is unstoppable, but I don't at all agree that this will or should be a free-for-all with no regulation. We just need to catch up socially and legally with technology.

To me, the biggest problem with the rise of AirBnB is in areas that have tourist appeal but are mainly populated with long term residents. People used to occasionally rent out their place, or just let people stay there for free, but there was almost always some kind of social connection.

The removal of friction has allowed this to become far more widespread. I personally believe that it most definitely has the capacity for harm.

I remember hearing about one incident recently in the california wine country where there are some fruit trees on a public easement. Mostly residential, but lots of appeal to tourists. The neighbors shared the trees as a commons, they'd take a bit, but leave plenty, and would informally contribute time and money to maintenance. One day, the trees were stripped, completely, of any fruit. It turned out that a couple of people renting a nearby house had stripped the trees. The house, which had formerly been occupied by a family with kids, was now a full time vacation rental (at great profit for the owner) and was advertising "fruit picking in the alleyway" as one of the wonderful activities available to short term renters.

I know I risk sounding very trivial here, elevating little neighborhood squabbles about crab apples all out of proportion, but I think the story I heard really gets at the problem. Long term residents, to use a vulgar expression, have to sleep where they shit. Short termers don't. The non-legal self-corrective mechanisms that used to provide social harmony, things we weren't even aware of, may be badly disrupted but a very large number of short term residents. We're all willing to (or should be willing to) tolerate the occasional loud backyard party next door. But would we want to have that go on every night, all summer, from vacationers looking to maximize their fun? All of a sudden, we're using the law to regulate something that used to be managed less formally. The law is a terrible tool, way worse than just talking to your neighbors, but when you have a new neighbor every three days,it may be all you've got.

And even when the short term vacationers are on their best behavior, there is still a loss. There is also absolutely a loss when families who would like to know and socialize with long term neighbors, especially with children, start to get pushed out because they can't compete on price with people who plan to airbnb the crap out the old neighborhood. I don't have a link to this, but I read once that an economist estimated that good relations with the neighbors were worth about $50,000.

I remember PG writing about how new forms of property come into existence with new technologies, just as old ones can go away. We may only become aware that there was this vaguely defined property we owned now that airbnb has found a way to cash in. I really do think that the owner of many of these VRBOs are selling the neighborhood rather than the house itself, and they're harming the neighborhood in the process.

I'm more than ok with some use of airbnb, and obviously it opens up new benefits as well. But I think it is very reasonable for communities to strongly resist widespread short term rentals in their neighborhoods.