Panel Paper:
The Sharing Economy and Housing Affordability: Evidence from Airbnb
Friday, November 9, 2018
Tyler - Mezz Level (Marriott Wardman Park)
*Names in bold indicate Presenter
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
zipcode. 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.
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
zipcode. 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.
