Airbnb and Rental Markets: Evidence from Berlin

Tomaso Duso (), Claus Michelsen, Maximilian Schäfer and Kevin Tran
Authors registered in the RePEc Author Service: Maximilian Schaefer

No 9089, CESifo Working Paper Series from CESifo

Abstract: We exploit two policy interventions in Berlin, Germany, to causally identify the impact of Airbnb on rental markets. While the first intervention significantly reduced the number of high-availability Airbnb listings bookable for most of the year, the second intervention led to the exit of mostly occasional, low-availability listings. We find that the reduction in Airbnb supply has a much larger impact on rents and long-term rental supply for the first reform. This is consistent with more professional Airbnb hosts substituting back to the long-term rental market. Accordingly, we estimate that one additional nearby high-availability Airbnb listing crowds out 0.6 long-term rentals and, consequently, increases the asked square-meter rent by 1.8 percent on average. This marginal effect tends to be smaller in districts with a higher Airbnb density. However, these district experienced a larger slowdown in rent increases following the reform due to larger reductions in Airbnb supply.

Keywords: rents; housing market; short-term rental regulation; sharing economy; Airbnb (search for similar items in EconPapers)
JEL-codes: R21 R31 R52 Z30 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-eur, nep-law, nep-pay and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Airbnb and Rental Markets: Evidence from Berlin (2021)
Working Paper: Airbnb and Rental Markets: Evidence from Berlin (2021)
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