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Airbnb has become a fixture in the development of global cities, especially influencing their residential characteristics. The company derives from the concept of the sharing economy, the essence of which is the exchange of services or goods between individuals that set the rules of operation without generating profits, but together generating more revenue. It insists that it does not represent direct competition to other urban accommodation services and that it merely seeks to expand the tourism market. Nonetheless, this article proceeds from the assumption that Airbnb is influencing and transforming the housing market of the cities it operates in. It focuses on Ljubljana, which until 2019 had a record number of international arrivals and overnight stays. The findings confirm that short-term Airbnb rentals affect the long-term rental market in Ljubljana. They also show that rentals through Airbnb involve an extremely high share of the grey economy.
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