Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles

Hans Koster, Jos van Ommeren () and Nicolas Volkhausen

Journal of Urban Economics, 2021, vol. 124, issue C

Abstract: Online short-term rental (STR) platforms such as Airbnb have grown spectacularly. We study the effects of regulation of these platforms on the housing market using a quasi-experimental research design. 18 out of 88 cities in Los Angeles County have severely restricted short-term rentals by adopting Home Sharing Ordinances. We apply a panel regression-discontinuity design around the cities’ borders. Ordinances reduced listings by 50% and housing prices by 2%. Additional difference-in-differences estimates show that ordinances reduced rents also by 2%. These estimates imply large effects of Airbnb on property values in areas attractive to tourists (e.g. an increase in house prices of 15% within 2.5km of Hollywood’s Walk of Fame).

Keywords: Short-term rentals; Souse prices; Regulation; Supply effects; Externalities (search for similar items in EconPapers)
JEL-codes: R21 R31 Z32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Working Paper: Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:124:y:2021:i:c:s0094119021000383

DOI: 10.1016/j.jue.2021.103356

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