IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v174y2022ics0040162521007319.html
   My bibliography  Save this article

Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it

Author

Listed:
  • Morales-Alonso, Gustavo
  • Núñez, Yilsy M.

Abstract

Airbnb is the largest accommodation provider in the world. Its activity has lowered the cost of travelling, while providing owners of properties with a better way to monetize their idle assets. However, controversy has arisen due to the externalities created by home-sharing platforms, namely gentrification and touristification, that reduce livability of spaces affected by their activity. We look into the effect of Airbnb on long-term rental prices in the city of Madrid in 2019. We use Multilayer Perceptron (MLP) to analyze the data. Our findings indicate that, at the city level, long-term rental prices are mainly impacted by the distance of the district to the city center. This factor overrides the importance of the number of properties offered in home-sharing platforms. This speaks of long-term rental prices at the city level being governed by complex processes, in which the presence of home-sharing platforms is not the dominant one. However, if we look closely at touristic hotspots, we find that the concentration of properties offered in home-sharing platforms and specifically the presence of multilistings affect long-term rental prices importantly. Based on our findings, we propose a tax framework to deal with the externalities caused by the disruption of home-sharing platforms.

Suggested Citation

  • Morales-Alonso, Gustavo & Núñez, Yilsy M., 2022. "Dragging on multilisting: The reason why home-sharing platforms make long-term rental prices increase and how to fix it," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521007319
    DOI: 10.1016/j.techfore.2021.121297
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162521007319
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2021.121297?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martin, Chris J., 2016. "The sharing economy: A pathway to sustainability or a nightmarish form of neoliberal capitalism?," Ecological Economics, Elsevier, vol. 121(C), pages 149-159.
    2. Kässi, Otto & Lehdonvirta, Vili, 2018. "Online labour index: Measuring the online gig economy for policy and research," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 241-248.
    3. Liran Einav & Chiara Farronato & Jonathan Levin, 2016. "Peer-to-Peer Markets," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 615-635, October.
    4. Kassoum Ayouba & Marie-Laure Breuillé & Camille Grivault & Julie Le Gallo, 2020. "Does Airbnb Disrupt the Private Rental Market? An Empirical Analysis for French Cities," International Regional Science Review, , vol. 43(1-2), pages 76-104, January.
    5. Salvador Garcia-Ayllon, 2018. "Urban Transformations as an Indicator of Unsustainability in the P2P Mass Tourism Phenomenon: The Airbnb Case in Spain through Three Case Studies," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    6. Zhenpeng Zou, 2020. "Examining the Impact of Short-Term Rentals on Housing Prices in Washington, DC: Implications for Housing Policy and Equity," Housing Policy Debate, Taylor & Francis Journals, vol. 30(2), pages 269-290, March.
    7. Murillo, David & Buckland, Heloise & Val, Esther, 2017. "When the sharing economy becomes neoliberalism on steroids: Unravelling the controversies," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 66-76.
    8. Meisam Ranjbari & Gustavo Morales-Alonso & Ruth Carrasco-Gallego, 2018. "Conceptualizing the Sharing Economy through Presenting a Comprehensive Framework," Sustainability, MDPI, vol. 10(7), pages 1-24, July.
    9. Valesca Lima, 2019. "Towards an understanding of the regional impact of Airbnb in Ireland," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 6(1), pages 78-91, January.
    10. Garcia-López, Miquel-Àngel & Jofre-Monseny, Jordi & Martínez-Mazza, Rodrigo & Segú, Mariona, 2020. "Do short-term rental platforms affect housing markets? Evidence from Airbnb in Barcelona," Journal of Urban Economics, Elsevier, vol. 119(C).
    11. Horn, Keren & Merante, Mark, 2017. "Is home sharing driving up rents? Evidence from Airbnb in Boston," Journal of Housing Economics, Elsevier, vol. 38(C), pages 14-24.
    12. Daria Elżbieta Jaremen & Elżbieta Nawrocka & Michał Żemła, 2019. "Sharing the Economy in Tourism and Sustainable City Development in the Light of Agenda 2030," Economies, MDPI, vol. 7(4), pages 1-15, November.
    13. Andrei Boar & Ramon Bastida & Frederic Marimon, 2020. "A Systematic Literature Review. Relationships between the Sharing Economy, Sustainability and Sustainable Development Goals," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    14. Franco, Sofia F. & Santos, Carlos Daniel, 2021. "The impact of Airbnb on residential property values and rents: Evidence from Portugal," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    15. Stephen Sheppard & Andrew Udell, 2016. "Do Airbnb Properties Affect House Prices?," Department of Economics Working Papers 2016-03, Department of Economics, Williams College.
    16. repec:elg:eechap:15612_26 is not listed on IDEAS
    17. Michael Etter & Christian Fieseler & Glen Whelan, 2019. "Sharing Economy, Sharing Responsibility? Corporate Social Responsibility in the Digital Age," Journal of Business Ethics, Springer, vol. 159(4), pages 935-942, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Núñez, Yilsy M. & Morales-Alonso, Gustavo, 2024. "Longitudinal study of necessity- and opportunity-based entrepreneurship upon COVID lockdowns - The importance of misery and economic freedom indexes," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    2. Xiang, Diandian & Li, Xia & Hampson, Daniel Peter, 2023. "Service exchange activities in the sharing economy: Professional versus amateur peer providers," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Maruška Vizek & Tajana Barbić & Anita Čeh Časni, 2024. "The impact of the tourism accommodation composition on housing prices: The case of Croatia," Tourism Economics, , vol. 30(1), pages 267-274, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tedds, Lindsay M. & Cameron, Anna & Khanal, Mukesh & Crisan, Daria, 2021. "Why Existing Regulatory Frameworks Fail in the Short-term Rental Market: Exploring the Role of Regulatory Fractures," MPRA Paper 106712, University Library of Munich, Germany.
    2. Reichle, Philipp & Fidrmuc, Jarko & Reck, Fabian, 2023. "The sharing economy and housing markets in selected European cities," Journal of Housing Economics, Elsevier, vol. 60(C).
    3. Cong Liang & Matthew Chi Hei Yeung & Alan Kai Ming Au, 2022. "The impact of Airbnb on housing affordability: Evidence from Hong Kong," Environment and Planning B, , vol. 49(3), pages 1048-1066, March.
    4. Patrick Gauß & Sonja Gensler & Michael Kortenhaus & Nadine Riedel & Andrea Schneider, 2024. "Regulating the sharing economy: The effects of day caps on short- and long-term rental markets and stakeholder outcomes," Journal of the Academy of Marketing Science, Springer, vol. 52(6), pages 1627-1650, November.
    5. Cristina Pérez-Pérez & Diana Benito-Osorio & Susana María García-Moreno & Andrés Martínez-Fernández, 2021. "Is Sharing a Better Alternative for the Planet? The Contribution of Sharing Economy to Sustainable Development Goals," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    6. Carrasco-Farré, Carlos & Snihur, Yuliya & Berrone, Pascual & Ricart, Joan Enric, 2022. "The stakeholder value proposition of digital platforms in an urban ecosystem," Research Policy, Elsevier, vol. 51(4).
    7. Karl Taeuscher, 2019. "Uncertainty kills the long tail: demand concentration in peer-to-peer marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 649-660, December.
    8. Dan Wang & Liang Yan & Fangli Ruan, 2022. "A Combined IO-DEMATEL Analysis for Evaluating Sustainable Effects of the Sharing Related Industries Development," Sustainability, MDPI, vol. 14(9), pages 1-23, May.
    9. Gyódi, Kristóf, 2021. "Airbnb and hotels during COVID-19: different strategies to survive," MPRA Paper 109333, University Library of Munich, Germany.
    10. Matthias Wrede, 2022. "How Short-Term Rentals are Changing the Neighborhood," International Regional Science Review, , vol. 45(4), pages 417-443, July.
    11. Donghwan Ki & Sugie Lee, 2019. "Spatial Distribution and Location Characteristics of Airbnb in Seoul, Korea," Sustainability, MDPI, vol. 11(15), pages 1-16, July.
    12. Xu, Minhong & Xu, Yilan, 2021. "What happens when Airbnb comes to the neighborhood: The impact of home-sharing on neighborhood investment," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    13. Thackway, William & Ng, Matthew Kok Ming & Lee, Chyi Lin & Shi, Vivien & Pettit, Christopher, 2021. "Spatial Variability of the ‘Airbnb Effect’: A Spatially Explicit Analysis of Airbnb's impact on Housing Prices in Sydney," SocArXiv cw2a9, Center for Open Science.
    14. Andrei Boar & Ramon Bastida & Frederic Marimon, 2020. "A Systematic Literature Review. Relationships between the Sharing Economy, Sustainability and Sustainable Development Goals," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    15. Francesco Pasimeni, 2020. "The Origin of the Sharing Economy Meets the Legacy of Fractional Ownership," SPRU Working Paper Series 2020-19, SPRU - Science Policy Research Unit, University of Sussex Business School.
    16. Mohammed Alyakoob & Mohammad S. Rahman, 2022. "Shared Prosperity (or Lack Thereof) in the Sharing Economy," Information Systems Research, INFORMS, vol. 33(2), pages 638-658, June.
    17. MaruÅ¡ka Vizek & NebojÅ¡a StojÄ ić & Josip Mikulić, 2023. "Spatial spillovers of tourism activity on housing prices: The case of Croatia," Tourism Economics, , vol. 29(5), pages 1376-1390, August.
    18. Xufeng Liu & Hongmin Chen, 2020. "Sharing Economy: Promote Its Potential to Sustainability by Regulation," Sustainability, MDPI, vol. 12(3), pages 1-13, January.
    19. Susana Peralta & João Pereira dos Santos & Duarte Gonçalves, 2020. "Do short-term rentals increase housing prices? Quasi-experimental evidence from Lisbon," GEE Papers 0155, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2020.
    20. Wei Chen & Zaiyan Wei & Karen Xie, 2022. "The Battle for Homes: How Does Home Sharing Disrupt Local Residential Markets?," Management Science, INFORMS, vol. 68(12), pages 8589-8612, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521007319. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.