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Regulating short‐term rental housing: Evidence from New Orleans

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  • Maxence Valentin

Abstract

This study examines the effects of regulations targeting Airbnb and other short‐term rental (STR) suppliers in the urban center of New Orleans. I show that although the new ordinances reduced participation in the STR market as intended, STR usage actually increased in the neighborhoods adjacent to areas the most affected by the regulations. I subsequently show that the new regulations depressed property values in the neighborhoods facing the tightest regulations by approximately 30%, implying that homeowners factor into their housing purchasing decisions the option to participate in the STR market.

Suggested Citation

  • Maxence Valentin, 2021. "Regulating short‐term rental housing: Evidence from New Orleans," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(1), pages 152-186, March.
    • Handle: RePEc:bla:reesec:v:49:y:2021:i:1:p:152-186
    DOI: 10.1111/1540-6229.12330
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    Cited by:

    1. Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb, Hotels, and Localized Competition," Discussion Papers of DIW Berlin 1889, DIW Berlin, German Institute for Economic Research.
    2. Cameron, Anna & Khanal, Mukesh & Tedds, Lindsay M., 2022. "Managing Airbnb: A Cross-Jurisdictional Review of Approaches for Regulating the Short-Term Rental Market," MPRA Paper 111535, University Library of Munich, Germany.
    3. David M. Harrison & Michael J. Seiler & Liuming Yang, 2024. "The Impact of iBuyers on Housing Market Dynamics," The Journal of Real Estate Finance and Economics, Springer, vol. 68(3), pages 425-461, April.
    4. Alberto Hidalgo & Francisco J. Velázquez, 2026. "The economic impacts of short-term rentals and regulations: A literature review," Working Papers 2026-02, FEDEA.
    5. 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.
    6. Navid Safari & Lei Zhang & Timothy M. Komarek, 2025. "The impact of short-term rental activity on house prices: evidence from coastal Virginia," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-33, March.
    7. 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).
    8. Lily Shen & Sean Wilkoff, 2022. "Cleanliness is next to income: The impact of COVID‐19 on short‐term rentals," Journal of Regional Science, Wiley Blackwell, vol. 62(3), pages 799-829, June.
    9. Matthias Wrede, 2022. "How Short-Term Rentals are Changing the Neighborhood," International Regional Science Review, , vol. 45(4), pages 417-443, July.
    10. Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2020. "Airbnb and rents: evidence from Berlin," Working Papers hal-04495637, HAL.

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