Practice and Policy-Based Abstract Externalities stemming from digital platforms have had a profound impact on the daily lives of people across the globe. In this work, we examine one such externality that contributes to urban quality of life, the noise stemming from home-sharing platforms, which has been subject to aggressive scrutiny by policymakers and the popular press but has received limited rigorous empirical attention. Against a backdrop of significant investment by municipalities to curb extant levels of urban noise, our findings suggest that these platforms are instead correlated with a decrease in noise complaints in New York City (notably when occupancy rates are lower or the residence is located near tourist attractions). These findings suggest that investments in abating the noise stemming from such short-term rentals are less necessary than indicated by anecdotal evidence and are better directed at other forms of urban noise sources, chiefly because such rental units are frequently unoccupied and therefore remain quieter than residential units. However, these findings also underscore the extent to which home-sharing networks may be further straining the already stressed housing market in large metropolitan areas like New York City.
