IDEAS home Printed from https://ideas.repec.org/p/ieb/wpaper/doc2019-05.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://ieb.ub.edu/wp-content/uploads/2019/07/2019-IEB-WorkingPaper-05-1.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Baum-Snow, Nathaniel & Hartley, Daniel, 2020. "Accounting for central neighborhood change, 1980–2010," Journal of Urban Economics, Elsevier, vol. 117(C).
    2. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    3. Henrik Jacobsen Kleven & Camille Landais & Esben Schultz, 2014. "Migration and Wage Effects of Taxing Top Earners: Evidence from the Foreigners' Tax Scheme in Denmark," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 333-378.
    4. Couture, Victor & Handbury, Jessie, 2020. "Urban revival in America," Journal of Urban Economics, Elsevier, vol. 119(C).
    5. Nicolás González-Pampillón & Jordi Jofre-Monseny & Elisabet Viladecans-Marsal, 2020. "Can urban renewal policies reverse neighborhood ethnic dynamics? [Urban renewal after the Berlin Wall: a place-based policy evaluation]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 419-457.
    6. Joan Monras, 2019. "Minimum Wages and Spatial Equilibrium: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 853-904.
    7. Paul Goldsmith-Pinkham & Isaac Sorkin & Henry Swift, 2020. "Bartik Instruments: What, When, Why, and How," American Economic Review, American Economic Association, vol. 110(8), pages 2586-2624, August.
    8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    9. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2021. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," Journal of Urban Economics, Elsevier, vol. 124(C).
    10. Kristian Behrens & Brahim Boualam & Julien Martin & Florian Mayneris, 2024. "Gentrification and Pioneer Businesses," The Review of Economics and Statistics, MIT Press, vol. 106(1), pages 119-132, January.
    11. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 791-821.
    12. Justin Wolfers, 2006. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," American Economic Review, American Economic Association, vol. 96(5), pages 1802-1820, December.
    13. Stephen Sheppard & Andrew Udell, 2016. "Do Airbnb Properties Affect House Prices?," Department of Economics Working Papers 2016-03, Department of Economics, Williams College.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sansone, Dario, 2019. "Pink work: Same-sex marriage, employment and discrimination," Journal of Public Economics, Elsevier, vol. 180(C).
    2. Wei Chen & Zaiyan Wei & Karen Xie, 2022. "The Battle for Homes: How Does Home Sharing Disrupt Local Residential Markets?," Management Science, INFORMS, vol. 68(12), pages 8589-8612, December.
    3. Katie R. Genadek & Wendy A. Stock & Christiana Stoddard, 2007. "No-Fault Divorce Laws and the Labor Supply of Women with and without Children," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    4. Gordon Dahl, 2010. "Early teen marriage and future poverty," Demography, Springer;Population Association of America (PAA), vol. 47(3), pages 689-718, August.
    5. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    6. Joan Monras, 2020. "Immigration and Wage Dynamics: Evidence from the Mexican Peso Crisis," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3017-3089.
    7. Stefano Cascino & Ane Tamayo & Felix Vetter, 2021. "Labor Market Effects of Spatial Licensing Requirements: Evidence from CPA Mobility," Journal of Accounting Research, Wiley Blackwell, vol. 59(1), pages 111-161, March.
    8. De Simone, Lisa & Klassen, Kenneth J. & Seidman, Jeri K., 2022. "The effect of income-shifting aggressiveness on corporate investment," Journal of Accounting and Economics, Elsevier, vol. 74(1).
    9. Vu, Trung V., 2020. "Economic complexity and health outcomes: A global perspective," Social Science & Medicine, Elsevier, vol. 265(C).
    10. Libertad González & Berkay Özcan, 2013. "The Risk of Divorce and Household Saving Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 404-434.
    11. González, Libertad & Viitanen, Tarja K., 2009. "The effect of divorce laws on divorce rates in Europe," European Economic Review, Elsevier, vol. 53(2), pages 127-138, February.
    12. Carpenter, Christopher S. & Churchill, Brandyn F. & Marcus, Michelle, 2023. "Bad lighting: Effects of youth indoor tanning prohibitions," Journal of Health Economics, Elsevier, vol. 88(C).
    13. Themann, Michael & Koch, Nicolas, 2021. "Catching up and falling behind: Cross-country evidence on the impact of the EU ETS on firm productivity," Ruhr Economic Papers 904, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Tang, Can & Zhao, Zhong, 2022. "Informal institution meets child development," MERIT Working Papers 2022-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Nilsson, Isabelle & Delmelle, Elizabeth C., 2023. "Smart growth as a luxury amenity? Exploring the relationship between the marketing of smart growth characteristics and neighborhood racial and income change," Journal of Transport Geography, Elsevier, vol. 106(C).
    16. Dave, Dhaval & Liang, Yang & Pesko, Michael F. & Phillips, Serena & Sabia, Joseph J., 2023. "Have recreational marijuana laws undermined public health progress on adult tobacco use?," Journal of Health Economics, Elsevier, vol. 90(C).
    17. Gambacorta, Leonardo & Claessens, Stijn & Cornelli, Giulio & Manaresi, Francesco & Shiina, Yasushi, 2021. "Do macroprudential policies affect non-bank financial intermediation?," CEPR Discussion Papers 15895, C.E.P.R. Discussion Papers.
    18. Jetter, Michael & Magnusson, Leandro M. & Roth, Sebastian, 2020. "Becoming sensitive: Males’ risk and time preferences after the 2008 financial crisis," European Economic Review, Elsevier, vol. 128(C).
    19. Mounu Prem & Juan F. Vargas & Daniel Mejía, 2023. "The Rise and Persistence of Illegal Crops: Evidence from a Naive Policy Announcement," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 344-358, March.
    20. Inyoung Chae & Jihyeon Ha & David A. Schweidel, 2023. "Paywall Suspensions and Digital News Subscriptions," Marketing Science, INFORMS, vol. 42(4), pages 729-745, July.

    More about this item

    Keywords

    Housing markets; short-term rentals; Airbnb;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:doc2019-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/iebubes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.