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

Hans R.A. Koster, Jos van Ommeren () and Nicolas Volkhausen

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

Abstract: 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)
New Economics Papers: this item is included in nep-ure
Date: 2018-07
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