IDEAS home Printed from https://ideas.repec.org/a/eee/jhouse/v60y2023ics1051137723000013.html
   My bibliography  Save this article

The sharing economy and housing markets in selected European cities

Author

Listed:
  • Reichle, Philipp
  • Fidrmuc, Jarko
  • Reck, Fabian

Abstract

A heated debate has emerged drawing a connection between housing affordability and home-sharing platforms such as Airbnb. Despite first regulatory efforts by municipalities, the impact on rents and house prices has been examined insufficiently in scientific literature, especially with regards to Europe. Therefore, this paper addresses this gap by analyzing data on Airbnb listings for 25 European cities between 2010 and 2019. Using fixed effects and dynamic panel regressions, we show that home-sharing has significantly contributed to a rise in rents and house prices in European cities. While these effects are mainly concentrated in city centers, we also document effects in other urban districts. Finally, recent home-sharing regulations are not associated significantly with housing affordability.

Suggested Citation

  • Reichle, Philipp & Fidrmuc, Jarko & Reck, Fabian, 2023. "The sharing economy and housing markets in selected European cities," Journal of Housing Economics, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:jhouse:v:60:y:2023:i:c:s1051137723000013
    DOI: 10.1016/j.jhe.2023.101914
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1051137723000013
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhe.2023.101914?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:eme:ijhma0:ijhma-05-2015-0023 is not listed on IDEAS
    2. Katharina Knoll & Moritz Schularick & Thomas Steger, 2017. "No Price Like Home: Global House Prices, 1870-2012," American Economic Review, American Economic Association, vol. 107(2), pages 331-353, February.
    3. Kassoum Ayouba & Marie-Laure Breuillé & Camille Grivault & Julie Le Gallo, 2020. "Does Airbnb Disrupt the Private Rental Market? An Empirical Analysis for French Cities," International Regional Science Review, , vol. 43(1-2), pages 76-104, January.
    4. Edward Glaeser & Joseph Gyourko, 2018. "The Economic Implications of Housing Supply," Journal of Economic Perspectives, American Economic Association, vol. 32(1), pages 3-30, Winter.
    5. Ansgar Belke & Jonas Keil, 2018. "Fundamental Determinants of Real Estate Prices: A Panel Study of German Regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(1), pages 25-45, February.
    6. Dimitris Balampanidis & Thomas Maloutas & Evangelia Papatzani & Dimitris Pettas, 2021. "Informal urban regeneration as a way out of the crisis? Airbnb in Athens and its effects on space and society," Urban Research & Practice, Taylor & Francis Journals, vol. 14(3), pages 223-242, May.
    7. Horn, Keren & Merante, Mark, 2017. "Is home sharing driving up rents? Evidence from Airbnb in Boston," Journal of Housing Economics, Elsevier, vol. 38(C), pages 14-24.
    8. Philipp Schäfer & Nicole Braun, 2016. "Misuse through short-term rentals on the Berlin housing market," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 9(2), pages 287-311, June.
    9. Philipp Schäfer & Nicole Braun, 2016. "Misuse through short-term rentals on the Berlin housing market," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 9(2), pages 287-311, June.
    10. Sebastian Kripfganz, 2016. "Quasi–maximum likelihood estimation of linear dynamic short-T panel-data models," Stata Journal, StataCorp LP, vol. 16(4), pages 1013-1038, December.
    11. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    12. A Accetturo & A. R Lamorgese & S Mocetti & D Pellegrino, 2021. "Housing supply elasticity and growth: evidence from Italian cities," Journal of Economic Geography, Oxford University Press, vol. 21(3), pages 367-396.
    13. Edward L. Glaeser & Matt Resseger & Kristina Tobio, 2009. "Inequality In Cities," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 617-646, October.
    14. Nicole Gurran & Peter Phibbs, 2017. "When Tourists Move In: How Should Urban Planners Respond to Airbnb?," Journal of the American Planning Association, Taylor & Francis Journals, vol. 83(1), pages 80-92, January.
    15. Thomas Hyclak & Geraint Johnes, 1999. "original: House prices and regional labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(1), pages 33-49.
    16. Glaeser, Edward L & Gyourko, Joseph & Saks, Raven, 2005. "Why Is Manhattan So Expensive? Regulation and the Rise in Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 331-369, October.
    17. Patrick Bayer & Kyle Mangum & James W. Roberts, 2021. "Speculative Fever: Investor Contagion in the Housing Bubble," American Economic Review, American Economic Association, vol. 111(2), pages 609-651, February.
    18. Shirley Nieuwland & Rianne van Melik, 2020. "Regulating Airbnb: how cities deal with perceived negative externalities of short-term rentals," Current Issues in Tourism, Taylor & Francis Journals, vol. 23(7), pages 811-825, April.
    19. Valesca Lima, 2019. "Towards an understanding of the regional impact of Airbnb in Ireland," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 6(1), pages 78-91, January.
    20. Hsiao, Cheng & Hashem Pesaran, M. & Kamil Tahmiscioglu, A., 2002. "Maximum likelihood estimation of fixed effects dynamic panel data models covering short time periods," Journal of Econometrics, Elsevier, vol. 109(1), pages 107-150, July.
    21. Björn Egner & Katharina J Grabietz, 2018. "In search of determinants for quoted housing rents: Empirical evidence from major German cities," Urban Research & Practice, Taylor & Francis Journals, vol. 11(4), pages 460-477, October.
    22. 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).
    23. Chiara Farronato & Andrey Fradkin, 2018. "The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb," NBER Working Papers 24361, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    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. Tedds, Lindsay M. & Cameron, Anna & Khanal, Mukesh & Crisan, Daria, 2021. "Why Existing Regulatory Frameworks Fail in the Short-term Rental Market: Exploring the Role of Regulatory Fractures," MPRA Paper 106712, University Library of Munich, Germany.
    2. 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.
    3. 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).
    4. 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.
    5. Donghwan Ki & Sugie Lee, 2019. "Spatial Distribution and Location Characteristics of Airbnb in Seoul, Korea," Sustainability, MDPI, vol. 11(15), pages 1-16, July.
    6. Musson, Anne & Rousselière, Damien, 2020. "Identifying the impact of crisis on cooperative capital constraint. A short note on French craftsmen cooperatives," Finance Research Letters, Elsevier, vol. 35(C).
    7. 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.
    8. Michalô °€ Brzozowski, 2020. "Impact of Credit Market Development and Stability on Productivity: New Evidence from the Industry Level," Annals of Economics and Finance, Society for AEF, vol. 21(1), pages 111-129, May.
    9. Izabela Sobiech, 2015. "Remittances, finance and growth: does financial development foster remittances and their impact on economic growth," FIW Working Paper series 158, FIW.
    10. Wei Chen & Zaiyan Wei & Karen Xie, 2022. "The Battle for Homes: How Does Home Sharing Disrupt Local Residential Markets?," Management Science, INFORMS, vol. 68(12), pages 8589-8612, December.
    11. Helen X. H. Bao & Saul Shah, 2020. "The Impact of Home Sharing on Residential Real Estate Markets," JRFM, MDPI, vol. 13(8), pages 1-18, July.
    12. Dolnicar, Sara, 2019. "A review of research into paid online peer-to-peer accommodation," Annals of Tourism Research, Elsevier, vol. 75(C), pages 248-264.
    13. 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).
    14. Agustín Álvarez-Herranz & Edith Macedo-Ruíz, 2021. "An Evaluation of the Three Pillars of Sustainability in Cities with High Airbnb Presence: A Case Study of the City of Madrid," Sustainability, MDPI, vol. 13(6), pages 1-35, March.
    15. Cheikh Tidiane Ndiaye & Armand Akomavo Dagoudo & Babacar Mbengue, 2021. "Growth and Income Distribution Inequalities in Sub-Saharan Africa: A Dynamic Model Approach [Croissance et inégalités de distribution des revenus en Afrique subsaharienne : une approche par les mod," Working Papers hal-03202484, HAL.
    16. Irene Rubino & Cristina Coscia & Rocco Curto, 2020. "Identifying Spatial Relationships between Built Heritage Resources and Short-Term Rentals before the Covid-19 Pandemic: Exploratory Perspectives on Sustainability Issues," Sustainability, MDPI, vol. 12(11), pages 1-22, June.
    17. D. Dragone & D. Raggi, 2018. "Testing Rational Addiction: When Lifetime is Uncertain, One Lag is Enough," Working Papers wp1119, Dipartimento Scienze Economiche, Universita' di Bologna.
    18. Matthias Wrede, 2022. "How Short-Term Rentals are Changing the Neighborhood," International Regional Science Review, , vol. 45(4), pages 417-443, July.
    19. Zahratu Shabrina & Elsa Arcaute & Michael Batty, 2022. "Airbnb and its potential impact on the London housing market," Urban Studies, Urban Studies Journal Limited, vol. 59(1), pages 197-221, January.
    20. Brausewetter, Lars & Thomsen, Stephan L. & Trunzer, Johannes, 2022. "Explaining Regional Disparities in Housing Prices across German Districts," IZA Discussion Papers 15199, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Sharing economy; Housing costs; Regional economics; Cities;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    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:eee:jhouse:v:60:y:2023:i:c:s1051137723000013. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622881 .

    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.