Exploring the nexus of housing, tourism, and local liveability: Insights from Paris, Milan, and Rome

This study examines the association between short-term tourist rentals and urban housing markets, local services, and liveability in three major European cities: Paris, Milan, and Rome. Using empirical, place-based longitudinal data, the research finds a statistically significant positive correlation between the shares of short-term rentals and the advertised selling prices in Milan and Rome, with areas having higher shares of Airbnb apartments experiencing higher property values. In Paris, there is a positive association with middle-sized houses, with higher transaction prices related to an increase in short-term rental shares. Additionally, the study reveals that short-term rentals are associated with declining residential services and increasing tourist-oriented services in Milan and Paris. However, survey data among residents suggests that the perceived liveability of neighbourhoods is not significantly affected by tourism and short-term rentals, despite some concerns about different forms of displacement. This study contributes to the debate about balanced development of the short-term rental sector and the need to exploit opportunities brought about by the tourism activity while also protecting liveability for the locals and the availability of affordable housing for all. Moreover, this analysis highlights the need to deepen the research about the socioeconomic impacts of tourism at high spatial resolution to draw evidence-based implications for urban planning and policymaking.