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Airbnb and rental markets: Evidence from Berlin

Author

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  • Duso, Tomaso
  • Michelsen, Claus
  • Schaefer, Maximilian
  • Tran, Kevin Ducbao

Abstract

We exploit the differential responses of Airbnb hosts to two distinct policy interventions in Berlin to shed light on the optimal design of policies targeting short-term rental platforms to mitigate rental market inflation. The first intervention, which affected commercial listings, significantly impacted long-term rental markets, unlike the second intervention, which mainly affected non-commercial listings. Leveraging these policy variations, we estimate the marginal impact of Airbnb on rental supply and rents. Each additional commercial Airbnb listing displaces 0.23 to 0.37 rental units and increases rent per square meter by 1.3 to 2.4 percent. This underscores the importance of targeting commercial listings when regulating short-term rental markets.

Suggested Citation

  • Duso, Tomaso & Michelsen, Claus & Schaefer, Maximilian & Tran, Kevin Ducbao, 2024. "Airbnb and rental markets: Evidence from Berlin," Regional Science and Urban Economics, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:regeco:v:106:y:2024:i:c:s0166046224000310
    DOI: 10.1016/j.regsciurbeco.2024.104007
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    More about this item

    Keywords

    Short-term rental regulation; Sharing economy; Rents; Housing market; Airbnb;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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