Do short-term rent platforms affect rents? Evidence from Airbnb in Barcelona

Segú, Mariona (2018): Do short-term rent platforms affect rents? Evidence from Airbnb in Barcelona.

Abstract

Peer-to-peer platforms such as airbnb have recently entered the market thanks to the development of new technologies and their influence on traditional markets remains still understudied. Similarly, the multiplicity of local regulations adopted by big touristic cities in developed countries shows a lack of consensus both on the consequences and on the role of regulation. However, the actual impact of airbnb’s market entry on rents remains still unknown. I assess the causal impact of the beginning of airbnb’s economic activity on housing rents for the city of Barcelona using a Bartiklike instrumental strategy. Results suggest that airbnb is responsible for a 4% increase in rents.

• Item Type: MPRA Paper
• Language: English
• Keywords: Housing rents, short term rentals, airbnb
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R20 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

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