The Effect of Tourism Activity on Housing Affordability

Josip Mikulic, Maruška Vizek, Nebojsa Stojcic, James Payne, Anita Čeh Časni and Tajana Barbic

MPRA Paper from University Library of Munich, Germany

Abstract: Although researchers have confirmed the impact of tourism on housing prices in many destinations affected with overtourism, they do not consider housing affordability in relation to the population’s income levels. This study explores the relationship between tourism activity and housing affordability, using a sample of Croatian municipalities. Specifically, the study investigates how tourist accommodation, concentration, seasonality and overall vulnerability to tourism influence housing affordability in this emerging tourism-driven European country. The results obtained reveal tourism intensification’s deteriorating effect on local residents’ abilities to afford housing. The findings indicate a particularly strong tourism seasonality impact, suggesting the presence of common negative externalities, such as employment fluctuations, difficulties in maintaining economic status, and revenue instabilities, in localities prone to seasonal tourism fluctuations.

Keywords: tourism intensity; housing affordability; dynamic panel model; Croatia (search for similar items in EconPapers)
JEL-codes: L83 R2 R31 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-eur, nep-tra, nep-tur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: The effect of tourism activity on housing affordability (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108688

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