SMU SOE Seminar (Apr 3, 2019): Short-term Rentals and the Housing Market: Quasi-experimental Evidence from Airbnb in Los Angeles

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ABSTRACT Online short-term rental (STR) platforms such as Airbnb have grown spectacularly. We study the effects of STR-platforms on the housing market using a quasi-experimental research design. 18 out of 88 cities in Los Angeles County have severely restricted short-term rentals by adopting Home Sharing Ordinances. We apply a panel regression-discontinuity design around the cities' borders. Ordinances reduced listings by 50% and housing prices by 3%. Additional difference-in-differences estimates show that ordinances reduced rents also by 3%. These estimates imply large effects of Airbnb on property values in areas attractive to tourists (e.g. an increase of 10% within 2.5km of Downtown LA). Keywords: Short-term rentals, House prices, Regulation, Supply effects, Externalities. JEL Codes: R21, R31, Z32. Click here to view the paper. Click here to view the CV.
		PRESENTER Jos Van Ommeren Vrije Universiteit Amsterdam
		RESEARCH FIELDS Urban Economics
		DATE: 3 April 2019 (Wednesday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903