The Uneven Effect of Airbnb on the Housing Market. Evidence Across and within Italian Cities

59 Pages Posted: 24 Aug 2022

See all articles by Raffaele Congiu

Raffaele Congiu

Politecnico di Torino

Flavio Pino

Politecnico di Torino

Laura Rondi

Politecnico di Torino

Abstract

We investigate whether the diffusion of Airbnb reduces or exacerbates the differences between central and suburban areas by affecting residential property values. We leverage on the strong heterogeneity of five Italian cities in terms of tourist vocation, local housing markets and socio-economic conditions. We find that Airbnb growth leads to an increase in sale prices overall, but the impact differs both across and within cities. We also find evidence of spillover effects. In Milan and Rome, where the centre-periphery contrast is greater, Airbnb growth in the centre widens the existing gap between property values. In Florence, where initial disparities are smaller, house prices tend to converge over time. Our findings suggest that the growth of online rental platforms may contribute to a spatial dimension of inequality between the centre and the periphery, widening large gaps and reducing small ones, based on the initial conditions - income inequality, owner-occupancy, local housing markets - of the areas.

Keywords: Sharing economy, Airbnb, Housing market, Tourism, Core-periphery submarkets, Spatial inequality

Suggested Citation

Congiu, Raffaele and Pino, Flavio and Rondi, Laura, The Uneven Effect of Airbnb on the Housing Market. Evidence Across and within Italian Cities. Available at SSRN: https://ssrn.com/abstract=4199574

Raffaele Congiu

Politecnico di Torino ( email )

Corso Duca degli Abruzzi, 24
Torino, Torino 10129
Italy

Flavio Pino (Contact Author)

Politecnico di Torino ( email )

Torino
Italy

Laura Rondi

Politecnico di Torino ( email )

Department of Management
Corso Duca degli Abruzzi, 24
Torino, 10129
Italy
+39 011 0907232 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
159
Abstract Views
474
Rank
350,418
PlumX Metrics