Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles
Hans R.A. Koster,
Jos van Ommeren () and
No 13094, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Online short-term housing rental platforms such as Airbnb have grown spectacularly in recent years. 18 out 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 residential property prices by 3%. Difference-in-difference estimates show that rents also decreased by 3%. These estimates imply large effects of Airbnb on property values in areas attractive to tourists (e.g. by 14% within 5km of Downtown LA).
Keywords: externalities; House Prices; regulation; short-term rentals; supply effects (search for similar items in EconPapers)
JEL-codes: R21 R31 (search for similar items in EconPapers)
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