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Econometric modeling of the demand for short-term rental housing: The case of Airbnb in Moscow

Author

Listed:
  • Bobrovskaya, EV.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia)

  • Polbin, A.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russia
    Ye. T. Gaidar Institute for Economic Policy, Moscow, Russia)

Abstract

The article analyzes demand determinants for short-term rental housing on the online platform Airbnb in Moscow. The study used a cross-sectional sample of listings that were active between March 2021 and February 2022. Spatial models were estimated to account for spatial autocorrelation. Spatial Durbin model was found to be the best for the available data. Direct, indirect and general effects were calculated for a correct interpretation of the results. Based on the results of the study, both the own price elasticity of demand (-0.68) and the cross-price elasticity (0.42) were determined. In addition, the article identified the main characteristics of apartments that affect demand. Characteristics related to the area of housing (maximum capacity and number of bathrooms), the availability of various amenities in the apartment and related indicators (paid parking, self-check-in, number of photos and instant booking, superhost status, response rate) have positive demand influence. The distance to the city center and the minimum rental period negatively affect demand. The results of the study were tested for robustness using various spatial weight matrices and alternative variables as rental price.

Suggested Citation

  • Bobrovskaya, EV. & Polbin, A., 2023. "Econometric modeling of the demand for short-term rental housing: The case of Airbnb in Moscow," Journal of the New Economic Association, New Economic Association, vol. 59(2), pages 64-84.
    • Handle: RePEc:nea:journl:y:2023:i:59:p:64-84
    DOI: 10.31737/22212264_2023_2_64-84
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    References listed on IDEAS

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    More about this item

    Keywords

    Airbnb; short-term rental housing; spatial econometrics; spatial Durbin model; demand determinants; demand elasticity;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • Z39 - Other Special Topics - - Tourism Economics - - - Other

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