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Spatial Rent Indices for Cities Around the World: A Comparison of Airbnb and Long-Term Rentals

Author

Listed:
  • Robert J. Hill

    (University of Graz, Austria)

  • Norbert Pfeifer

    (University of Graz, Austria)

  • Miriam Steurer

    (University of Graz, Austria)

Abstract

Housing rents are one of the most important and difficult elements of spatial cost of living comparisons. Difficulties arise from the lack of sufficiently detailed and harmonized data, especially at the international level. The mergence of Airbnb has created a valuable new source of internationally harmonized, micro-level rental data that circumvent these difficulties. In this paper, we combine hedonic regression and multilateral price index methods to construct an Airbnb spatial rent index for 60 cities across Europe, the Americas, Asia, Africa, and Australia. We then use this index to investigate four main issues: (i) How Airbnb rents differ across cities; (ii) The relationship between Airbnb and long-term rents; (iii) The role that rents play in determining spatial price differences across cities; (iv) The dependence of housing affordability comparisons on the extent to which rents are quality adjusted.

Suggested Citation

  • Robert J. Hill & Norbert Pfeifer & Miriam Steurer, 2025. "Spatial Rent Indices for Cities Around the World: A Comparison of Airbnb and Long-Term Rentals," Graz Economics Papers 2025-01, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2025-01
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    More about this item

    Keywords

    Spatial hedonic rent index; City-level comparison; Airbnb rent premium; Housing affordability; Cost of living.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • 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
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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