This paper explores the effects of home-sharing platforms in general and Airbnb in particular on rental rates at a neighbourhood level. Using consumer-facing Airbnb data from ten neighbourhoods located within large metropolitan areas in the U.S. between 2013-2017, as well as rental data from the American online real estate database company, Zillow, this paper examines the relationship between Airbnb penetration and rental rates. The results indicate that the relationship is not as unanimous as once thought. Viewing the relationship at an aggregate level, an approach used by many researchers in the past, hides the complexities of the underlying effects. Instead, Airbnb’s impact on rental rates depends on a neighbourhood’s individual characteristics. This study also urges policy makers to create tailor-made solutions that help curb the negative impacts associated with the platform whilst still harnessing its economic benefits.