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Short-term vs. medium-term rentals: Rents, market tightness, and foreclosure effects

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  • Ouasbaa, Ghizlen
  • Raya, Josep Maria

Abstract

This paper studies the causal effects of platform-based rentals on housing affordability, market tightness, and foreclosure risk in Barcelona, distinguishing between short-term rentals (STRs) and medium-term rentals (MTRs). Using granular data from Airbnb and HomeAway, matched with housing transactions and foreclosure records, we estimate an instrumental variable model to identify the impact of STR and MTR activity on local housing outcomes. We find that an increase in the number of STR listings raises rents and reduces discounts, exacerbating affordability concerns, while being associated with lower foreclosure rates. In contrast, a rise in MTR listings is associated with lower rents, suggesting a reallocation of housing demand toward the medium-term segment and a moderation of pressure on the long-term rental market.

Suggested Citation

  • Ouasbaa, Ghizlen & Raya, Josep Maria, 2026. "Short-term vs. medium-term rentals: Rents, market tightness, and foreclosure effects," Journal of Housing Economics, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:jhouse:v:71:y:2026:i:c:s1051137726000057
    DOI: 10.1016/j.jhe.2026.102124
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