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Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona

Author

Listed:
  • Miquel-Àngel Garcia-López

    (Universitat Autònoma de Barcelona, Institut d’Economia de Barcelona (IEB))

  • Jordi Jofre-Monseny

    (Universitat de Barcelona, Institut d’Economia de Barcelona (IEB))

  • Rodrigo Martínez Mazza

    (Universitat de Barcelona, Institut d’Economia de Barcelona (IEB))

  • Mariona Segú

    (RITM, Université Paris Sud, Paris Saclay)

Abstract

In this paper, we assess the impact of the arrival and expansion of Airbnb on housing rents and prices in the city of Barcelona. Examining highly detailed data on rents and both transaction and posted prices, we use several econometric approaches that exploit the exact timing and geography of Airbnb activity in the city. These include i) panel fixed-effects models with neighborhood-specific time trends, ii) an instrumental variable shift-share approach in which tourist amenities predict where Airbnb listings will locate and Google searches predict when listings appear, and iii) event-study designs. For the average neighborhood in terms of Airbnb activity, our preferred results imply that rents have increased by 1.9%, while transaction (posted) prices have increased by 5.3% (3.7%). The estimated impact in neighborhoods with high Airbnb activity is substantial. For neighborhoods in the top decile of Airbnb activity distribution, rents are estimated to have increased by 7%, while increases in transaction (posted) prices are estimated at 19% (14%).

Suggested Citation

  • Miquel-Àngel Garcia-López & Jordi Jofre-Monseny & Rodrigo Martínez Mazza & Mariona Segú, 2019. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Working Papers 2019/05, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2019-05
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    Keywords

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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