The Effects of Regulating the Housing Short-Term Rental Market: Evidence From New Orleans
38 Pages Posted: 17 Feb 2019 Last revised: 10 May 2019
Date Written: May 08, 2019
This study exploits the enactment of regulations targeting Airbnb and other short-term rental (STR) suppliers in New Orleans to identify its effects on market participants' behavior and housing values. I show that although new regulations reduced participation in the STR market as intended, STR usage increased in the neighborhoods adjacent to the properties the most affected by the amendments. I subsequently show that the new regulations depressed property values within the neighborhoods facing the tightest regulations implying that homeowners factor the option to participate in the STR market into their housing purchasing decision.
Keywords: Property Rights, Policy Analysis, Short-Term Rental Market, Housing Values
JEL Classification: K11, R31, R52, Z30
Suggested Citation: Suggested Citation