To rent or not to rent: A household finance perspective on Berlin's short-term rental regulation
No 1/2021, IWH Discussion Papers from Halle Institute for Economic Research (IWH)
With the increasing concerns that accompany the rising trends of house sharing economies, regulators impose new laws to counteract housing supply scarcity. In this paper, I investigate whether the ban on short-term entire house listings activated in Berlin in May 2016 had any adverse effects from a household finance perspective. More specifically, I derive short-term rental income and counter-factually compare it with long-term rental income to find that the ban, by decreasing the supply of short-term housing, accelerated short-term rental income but did not have any direct effect on long-term rental income. Commercial home-owners therefore would find renting on the short-term market to be financially advantageous.
Keywords: Airbnb; housing markets; sharing economy regulation; short-term rental markets (search for similar items in EconPapers)
JEL-codes: D31 R30 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:12021
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