IDEAS home Printed from https://ideas.repec.org/p/sur/surrec/1023.html
   My bibliography  Save this paper

Short-term Rentals and Housing Market: Evidence from Portuguese Metropolitan Areas

Author

Listed:
  • Francisco Nobre

    (University of Surrey)

  • Diogo Jardim Goncalves

    (University of Bristol)

  • Ronize Cruz

    (University of Coimbra)

Abstract

In this paper, we make use of the rapid expansion of short-term rentals in Portugal, based on a policy change in 2014, to estimate the effects on house prices. Using a novel dataset consisting of property transaction data, from 2010 to 2017, for the metropolitan areas of Lisbon and Porto, we causally identify the impact of these reforms through a two-way fixed effects model, at the quarterly level, where we control for property specific characteristics and location and time fixed effects. The evidence suggests that a one-unit increment in the number of local lodging establishments results in a 0.17% increase in the value of transaction, which is ensured by a set of robustness exercises. Stronger effects are found for properties with four or more bedrooms, owned by citizens outside of the European Union, in the municipality of Porto and at the upper quantiles. We also document a decrease in the number of transactions of new buildings and a positive effect on the value of commercial properties.

Suggested Citation

  • Francisco Nobre & Diogo Jardim Goncalves & Ronize Cruz, 2023. "Short-term Rentals and Housing Market: Evidence from Portuguese Metropolitan Areas," School of Economics Discussion Papers 1023, School of Economics, University of Surrey.
    • Handle: RePEc:sur:surrec:1023
    as

    Download full text from publisher

    File URL: https://repec.som.surrey.ac.uk/2023/DP10-23.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    2. Cl'ement de Chaisemartin & Ziteng Lei, 2021. "More Robust Estimators for Instrumental-Variable Panel Designs, With An Application to the Effect of Imports from China on US Employment," Papers 2103.06437, arXiv.org, revised Sep 2023.
    3. Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2021. "Airbnb and Rental Markets: Evidence from Berlin," Bristol Economics Discussion Papers 21/746, School of Economics, University of Bristol, UK.
    4. Garcia-López, Miquel-Àngel & Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2020. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Journal of Urban Economics, Elsevier, vol. 119(C).
    5. Alberto Hidalgo & Massimo Riccaboni & Francisco J. Velázquez, 2022. "The Effect of Short-Term Rentals on Local Consumption Amenities: Evidence from Madrid," Working Papers 01/2022, IMT School for Advanced Studies Lucca, revised Jan 2022.
    6. Franco, Sofia F. & Santos, Carlos Daniel, 2021. "The impact of Airbnb on residential property values and rents: Evidence from Portugal," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    7. Evangelista, Rui & Ramalho, Esmeralda A. & Andrade e Silva, João, 2020. "On the use of hedonic regression models to measure the effect of energy efficiency on residential property transaction prices: Evidence for Portugal and selected data issues," Energy Economics, Elsevier, vol. 86(C).
    8. Luís Mendes, 2022. "The Dysfunctional Rental Market in Portugal: A Policy Review," Land, MDPI, vol. 11(4), pages 1-17, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pereira dos Santos, João & Strohmaier, Kristina, 2024. "All That Glitters? Golden Visas and Real Estate," IZA Discussion Papers 16857, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garz, Marcel & Schneider, Andrea, 2023. "Data sharing and tax enforcement: Evidence from short-term rentals in Denmark," Regional Science and Urban Economics, Elsevier, vol. 101(C).
    2. Batalha, Mafalda & Gonçalves, Duarte & Peralta, Susana & Pereira dos Santos, João, 2022. "The virus that devastated tourism: The impact of covid-19 on the housing market," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    3. Mavropoulos, Antonios, 2021. "To rent or not to rent: A household finance perspective on Berlin's short-term rental regulation," IWH Discussion Papers 1/2021, Halle Institute for Economic Research (IWH).
    4. Lauriane Belloy, 2022. "Short-term rental revenues after the lockdown : An advantage for natural areas but always in dense rental spaces," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03671537, HAL.
    5. David López-Rodríguez & María de los Llanos Matea, 2019. "Recent developments in the rental housing market in Spain," Economic Bulletin, Banco de España, issue SEP.
    6. Francisco Nobre & Diogo Gonçalves & Ronize Cruz, 2023. "Short-term rentals and housing market: Evidence from portuguese metropolitan areas," CeBER Working Papers 2023-04, Centre for Business and Economics Research (CeBER), University of Coimbra.
    7. Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2021. "Airbnb and Rental Markets: Evidence from Berlin," Bristol Economics Discussion Papers 21/746, School of Economics, University of Bristol, UK.
    8. Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb, Hotels, and Localized Competition," Discussion Papers of DIW Berlin 1889, DIW Berlin, German Institute for Economic Research.
    9. Ismael Gálvez-Iniesta & José L. Groizard & Ferran Portella-Carbó, 2023. "Sharing my place: the local labor market impact of the P2P technology shock," DEA Working Papers 97, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    10. Thackway, William & Ng, Matthew Kok Ming & Lee, Chyi Lin & Shi, Vivien & Pettit, Christopher, 2021. "Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb's impact on Housing Prices in Sydney," SocArXiv cw2a9, Center for Open Science.
    11. Dirección General de Economía y Estadística, 2020. "El mercado de la vivienda en España entre 2014 y 2019," Occasional Papers 2013, Banco de España.
    12. Chung-Yim Yiu & Ka-Shing Cheung, 2021. "Urban Zoning for Sustainable Tourism: A Continuum of Accommodation to Enhance City Resilience," Sustainability, MDPI, vol. 13(13), pages 1-15, June.
    13. Časni Anita Čeh & Filić Josipa, 2022. "Tourism housing price nexus," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 8(2), pages 53-65, December.
    14. Catalina Llaneza Hesse & Josep Maria Raya Vílchez, 2022. "The effect of COVID-19 on the peer-to-peer rental market," Tourism Economics, , vol. 28(1), pages 222-247, February.
    15. Lauriane BELLOY, 2023. "Do short-term rentals impact population movements? An analysis in six french urban areas," Working Papers hal-04135401, HAL.
    16. Boto-García, David & Balado-Naves, Roberto & Mayor, Matías & Baños-Pino, José Francisco, 2023. "Consumers' demand for operational licencing: evidence from Airbnb in Paris," Annals of Tourism Research, Elsevier, vol. 100(C).
    17. Maruška Vizek & Tajana Barbić & Anita Čeh Časni, 2024. "The impact of the tourism accommodation composition on housing prices: The case of Croatia," Tourism Economics, , vol. 30(1), pages 267-274, February.
    18. Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb and Rents: Evidence from Berlin," Discussion Papers of DIW Berlin 1890, DIW Berlin, German Institute for Economic Research.
    19. Morales-Alonso, Gustavo & Núñez, Yilsy M., 2022. "Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. Gonçalves, Duarte & Peralta, Susana & Pereira dos Santos, João, 2022. "Short-Term Rental Bans and Housing Prices: Quasi-Experimental Evidence from Lisbon," IZA Discussion Papers 15706, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sur:surrec:1023. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ioannis Lazopoulos (email available below). General contact details of provider: https://edirc.repec.org/data/desuruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.