The Sharing Economy and Housing Affordability: Evidence from Airbnb

The Sharing Economy and Housing Affordability: Evidence from Airbnb

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.

Kyle Barron, Edward Kung, and Davide Proserpio

SSRN

April 10, 2018

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By |2018-09-20T11:07:24+00:00January 1st, 2018|Affordability, Efficiency/Growth, Land Use Regulation, Reference|