Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it

Gustavo Morales-Alonso and Yilsy M. Núñez

Technological Forecasting and Social Change, 2022, vol. 174, issue C

Abstract: Airbnb is the largest accommodation provider in the world. Its activity has lowered the cost of travelling, while providing owners of properties with a better way to monetize their idle assets. However, controversy has arisen due to the externalities created by home-sharing platforms, namely gentrification and touristification, that reduce livability of spaces affected by their activity. We look into the effect of Airbnb on long-term rental prices in the city of Madrid in 2019. We use Multilayer Perceptron (MLP) to analyze the data. Our findings indicate that, at the city level, long-term rental prices are mainly impacted by the distance of the district to the city center. This factor overrides the importance of the number of properties offered in home-sharing platforms. This speaks of long-term rental prices at the city level being governed by complex processes, in which the presence of home-sharing platforms is not the dominant one. However, if we look closely at touristic hotspots, we find that the concentration of properties offered in home-sharing platforms and specifically the presence of multilistings affect long-term rental prices importantly. Based on our findings, we propose a tax framework to deal with the externalities caused by the disruption of home-sharing platforms.

Keywords: Airbnb; Externalities; Gentrification; Touristification; Touristic hotspots; Regulation of the sharing economy (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521007319

DOI: 10.1016/j.techfore.2021.121297

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