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

Hans Koster, Jos van Ommeren () and Nicolas Volhausen

No 13094, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Online short-term rental (STR) platforms such as \textit{Airbnb} have grown spectacularly. We study the effects of STR-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 of 15% within 5km of Hollywood's Walk of Fame).

Keywords: Short-term rentals; House prices; Regulation; Supply effects; Externalities (search for similar items in EconPapers)
JEL-codes: R21 R31 (search for similar items in EconPapers)
Date: 2018-12
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (16)

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Journal Article: Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles (2021)
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