Short-term rentals and residential rents: evidence from a regulation in Santa Monica

Cayrua Chaves-Fonseca

No 2ad7j_v1, SocArXiv from Center for Open Science

Abstract: In recent years, there has been a significant increase in short-term rentals (STRs) facilitated by digital platforms such as Airbnb. This study evaluates the impacts of regulations imposed on these platforms, focusing on the Home-Sharing Ordinance implemented in Santa Monica, California. Using a Synthetic Control Method, the analysis finds that, two years after its implementation, the ordinance caused the number of Airbnb entire home listings to decrease by 60%. However, the study found no evidence that this regulation influenced long-term rental prices. Finally, suggestive evidence indicates that the ordinance did not increase the supply of houses allocated for long-term renters, potentially explaining its lack of impact on rents.

Date: 2024-07-08
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:2ad7j_v1

DOI: 10.31235/osf.io/2ad7j_v1

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