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Airbnb and Rental Markets: Evidence from Berlin

Author

Listed:
  • Tomaso Duso
  • Claus Michelsen
  • Maximilian Schäfer
  • Kevin Ducbao Tran

Abstract

We exploit two policy interventions in Berlin, Germany, to causally identify the impact of Airbnb on rental markets. While the first intervention significantly reduced the number of high-availability Airbnb listings bookable for most of the year, the second intervention led to the exit of mostly occasional, low-availability listings. We find that the reduction in Airbnb supply has a much larger impact on rents and long-term rental supply for the first reform. This is consistent with more professional Airbnb hosts substituting back to the long-term rental market. Accordingly, we estimate that one additional nearby high-availability Airbnb listing crowds out 0.6 long-term rentals and, consequently, increases the asked square-meter rent by 1.8 percent on average. This marginal effect tends to be smaller in districts with a higher Airbnb density. However, these district experienced a larger slowdown in rent increases following the reform due to larger reductions in Airbnb supply.

Suggested Citation

  • Tomaso Duso & Claus Michelsen & Maximilian Schäfer & Kevin Ducbao Tran, 2021. "Airbnb and Rental Markets: Evidence from Berlin," CESifo Working Paper Series 9089, CESifo.
  • Handle: RePEc:ces:ceswps:_9089
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    1. 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.

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    More about this item

    Keywords

    rents; housing market; short-term rental regulation; sharing economy; Airbnb;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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