Short-Term Residential Rentals

This article explores the impact of Airbnb on local housing prices and rent. The article finds that the total housing supply is not notably impacted by the presence of Airbnb. However, it notes that Airbnb increases both monthly rent and housing prices. It also finds that the reallocation of long-term rentals to short-term rentals is a key factor causing high rent prices for local residents. The authors suggest that municipalities should use regulation to discourage the reallocation of long-term rentals to short-term rentals, while not wholly discouraging home-sharing by owner-occupiers.