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

See all articles by Maxence Valentin

Maxence Valentin

Pennsylvania State University - Department of Insurance & Real Estate

Date Written: May 08, 2019

Abstract

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

Valentin, Maxence, The Effects of Regulating the Housing Short-Term Rental Market: Evidence From New Orleans (May 08, 2019). Available at SSRN: https://ssrn.com/abstract=3329964 or http://dx.doi.org/10.2139/ssrn.3329964

Maxence Valentin (Contact Author)

Pennsylvania State University - Department of Insurance & Real Estate ( email )

University Park, PA 16802-3306
United States

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