Short-term rentals

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Short-term Rentals






  • Barron, Kyle and Kung, Edward and Proserpio, Davide. “The Sharing Economy and Housing Affordability: Evidence from Airbnb.” (March 29, 2018).
    "We assess the impact of home-sharing on residential house prices and rents. Using a dataset of Airbnb listings from the entire United States and an instrumental variables estimation strategy, we find that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in house prices at the median owner-occupancy rate zip code. The effect is moderated by the share of owner-occupiers, a result consistent with absentee landlords reallocating their homes from the long-term rental market to the short-term rental market. A simple model rationalizes these findings."
  • Farronato, Chiara, and Andrey Fradkin. [2018]. “The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb.” NBER Working Paper No. 24361. Issued in February 2018, Revised in March 2018. 
    We study the effects of enabling peer supply through Airbnb in the accommodation industry. We present a model of competition between flexible and dedicated sellers - peer hosts and hotels - who provide differentiated products. We estimate this model using data from major US cities and quantify the welfare effects of Airbnb on travelers, hosts, and hotels. The welfare gains are concentrated in locations (New York) and times (New Years Eve) when hotels are capacity constrained. This occurs because peer hosts are responsive to market conditions, expand supply as hotels fill up, and keep hotel prices down as a result.
  • Schmid, Thacher, and Cornelius Swart. "Illegal Airbnbs Could Take 1,500 Rentals Off Market." Portland Mercury, October 11, 2018. 
      "In 2014, Portland also began requiring permits for Airbnb rentals—which the city called “accessory” short-term rentals—within residences containing up to five bedrooms. These permits require that hosts live in the unit they rent out via Airbnb (or any other short-term rental service) for at least 270 days of the year. That means hosts technically can’t rent out more than one residence at a time.
      "Currently, data from industry watchdogs indicate that as many as half of all Portland Airbnbs—conservatively, more than 1,500 units—still violate the city’s 270-day rule.

  • Stulberg, Ariel. "Airbnb Probably Isn’t Driving Rents Up Much, At Least Not Yet.” FiveThirtyEight, August 24, 2016.
    discusses a FiveThirtyEight analysis based on data from Airdna
  • Wachsmuch, David, et al. [2018]. “The High Cost of Short-Term Rentals in New York City.” Urban Politics and Governance research group (UPGO), School of Urban Planning, McGill University. January 30, 2018.
    "This report was commissioned by the Hotel Trades Council, AFL-CIO, and is cosponsored by a number of New York City community, housing and tenant advocacy organizations."
       from Executive Summary:
    "This report provides a comprehensive analysis of Airbnb activity in New York City and the surrounding region in the last three years (September 2014 - August 2017). Relying on new methodologies to analyze big data,
    we set out to answer four questions:
    1. Where is Airbnb activity located in New York, and how is it changing?
    2. Who makes money from Airbnb in New York?
    3. How much housing has Airbnb removed from the market in New York?
    4. Is Airbnb driving gentrification in New York?
        Key Findings (excerpts): 
    • 13,500 Units of Lost Housing: Airbnb has removed between 7,000 and 13,500 units of housing from New York City’s long-term rental market, including 12,200 frequently rented entire-home listings that were available for rent 120 days or more and 5,600 entire-home listings available for rent 240 days or more.
    • $380 More in Rent: By reducing housing supply, Airbnb has increased the median long-term rent in New York City by 1.4% over the last three years, resulting in a $380 rent increase for the median New York tenant looking for an apartment this year. 

  • Zervas, Georgias; Proserpio, Davide; Byers, John W. [2016]. “The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry.” Working paper. Last revised: November 18, 2016. First draft: December 14, 2013. 
    "Peer-to-peer markets, collectively known as the sharing economy, have emerged as alternative suppliers of goods and services traditionally provided by long-established industries. We explore the economic impact of the sharing economy on incumbent firms by studying the case of Airbnb, a prominent platform for short-term accommodations. We analyze Airbnb's entry into the state of Texas, and quantify its impact on the Texas hotel industry over the subsequent decade. We estimate that in Austin, where Airbnb supply is highest, the causal impact on hotel revenue is in the 8-10% range; moreover, the impact is non-uniform, with lower-priced hotels and those hotels not catering to business travelers being the most affected. The impact manifests itself primarily through less aggressive hotel room pricing, an impact that benefits all consumers, not just participants in the sharing economy. The price response is especially pronounced during periods of peak demand, such as SXSW, and is due to a differentiating feature of peer-to-peer platforms enabling instantaneous supply to scale to meet demand."