From Sharing to Capitalizing: Evaluating the Rise of Airbnb in Housing Prices

Yacine Allam, Marie-Laure Breuillé () and Julie Le Gallo ()
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Yacine Allam: CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Marie-Laure Breuillé: CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Julie Le Gallo: CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: This paper investigates the causal impact of short‐term rentals (STRs) on housing prices across French municipalities in 2018−2019. Using Airbnb data and a novel demand‐shock instrument, we isolate exogenous variation in STR supply. A 1% increase in STR density raises local housing prices by an average of 11%, with stronger effects in densely populated, supply‐constrained cities and in non‐touristic rural areas. Results also show substantial heterogeneity between professional and non‐professional hosts, the latter driving most of the capitalization effect. By combining platform and administrative data, the paper provides new evidence on how tourism‐driven housing demand shapes real‐estate markets.

Keywords: Airbnb; Instrumental variables; Real estate market; Short-term rentals; Spatial heterogeneity (search for similar items in EconPapers)
Date: 2026-01-14
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Published in Journal of Regional Science, 2026, ⟨10.1111/jors.70051⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05490782

DOI: 10.1111/jors.70051

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