Between Home and Investment: Airbnb Dynamics in the Latin American Heritage City of Valparaíso

This article examines the expansion of short-term rentals in Valparaíso, Chile, through the Airbnb platform. The study addresses the broader context of digital platforms transforming housing markets, with a focus on Latin American cities, where the implications of short-term rental growth remain understudied. The main objective is to understand how Airbnb is reshaping the spatial, economic, and social dimensions of rental housing in Valparaíso. Methodologically, the article employs quantitative methods, combining spatial analysis techniques (using ArcGIS) and descriptive statistical analysis. The results reveal that entire homes cluster in heritage-tourism hills (Concepción and Alegre) and coastal zones with panoramic views, where nightly rates can exceed the citywide average threefold, while shared rooms are dispersed in lower-income hills. Likewise, the study identifies a heterogeneous host profile; half of the hosts are owners who have another residence to live in, while the other half offers rooms within their own homes, indicating that platform usage is a complementary income strategy. These dynamics reflect asset-based welfare logics, repositioning housing as a hybrid asset for income generation rather than solely a domestic space. Even in the absence of large-scale corporate landlords, this fragmented market contributes to housing commodification and intensifies spatial inequalities. The study highlights the need for regulatory frameworks tailored to the socio-territorial specificities of heritage Latin American cities, which face both housing deficits and tourism pressures.