Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona
Jordi Jofre-Monseny (),
Rodrigo Martínez Mazza () and
Mariona Segú ()
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Jordi Jofre-Monseny: Universitat de Barcelona, Institut d’Economia de Barcelona (IEB)
Rodrigo Martínez Mazza: Universitat de Barcelona, Institut d’Economia de Barcelona (IEB)
Mariona Segú: RITM, Université Paris Sud, Paris Saclay
No 2019/05, Working Papers from Institut d'Economia de Barcelona (IEB)
In this paper, we assess the impact of the arrival and expansion of Airbnb on housing rents and prices in the city of Barcelona. Examining highly detailed data on rents and both transaction and posted prices, we use several econometric approaches that exploit the exact timing and geography of Airbnb activity in the city. These include i) panel fixed-effects models with neighborhood-specific time trends, ii) an instrumental variable shift-share approach in which tourist amenities predict where Airbnb listings will locate and Google searches predict when listings appear, and iii) event-study designs. For the average neighborhood in terms of Airbnb activity, our preferred results imply that rents have increased by 1.9%, while transaction (posted) prices have increased by 5.3% (3.7%). The estimated impact in neighborhoods with high Airbnb activity is substantial. For neighborhoods in the top decile of Airbnb activity distribution, rents are estimated to have increased by 7%, while increases in transaction (posted) prices are estimated at 19% (14%).
Keywords: Housing markets; short-term rentals; Airbnb (search for similar items in EconPapers)
JEL-codes: R10 R20 R31 Z30 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-big, nep-eur and nep-ure
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Journal Article: Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona (2020)
Working Paper: Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2019-05
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