The effects of regulating the housing short-term rental market: Evidence from New Orleans

Maxence Valentin

ERES from European Real Estate Society (ERES)

Abstract: Municipalities across the world have regulated the short-term rental (STR) market in the recent years with however little comprehensive research on the effects of these regulations. This study exploits the enactment of regulations targeting Airbnb and other STR suppliers in New Orleans to identify its effects on market participants' behavior and housing value. I show that although new regulations reduced participation in the STR market as intended, STR usage increased in the neighborhoods adjacent to the properties the most affected by the amendments. I subsequently show that the new regulations depressed property values within the neighborhoods facing the tightest regulations implying that homeowners factor the option to participate in the STR market into their housing purchasing decision.

Keywords: policy analysis; Property right; Sharing Economy; Short-term rental market (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2019-01-01
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (2)

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