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

By H. Koster, J. V. van Ommeren, Nicolas Volkhausen. Journal of Urban Economics, 2018

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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).

Subfields: Automotive Engineering, Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/1bd296bedf90b0d72a48d93bd1ee05d864382a5b