Airbnb and Rental Markets: Evidence from Berlin

40 Pages Posted: 21 Sep 2022

See all articles by Tomaso Duso

Tomaso Duso

German Institute for Economic Research (DIW Berlin); TU Berlin- Faculty of Economics and Management - Empirical Industrial Organization; Centre for Economic Policy Research (CEPR)

Claus Michelsen

affiliation not provided to SSRN

Maximilian Schaefer

Yale University - Department of Economics; Alma Mater Studiorum University of Bologna

Kevin Ducbao Tran

University of Bristol, School of Economics

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Abstract

This article evaluates how two policy interventions in Berlin, Germany, have affected the supply of Airbnb listings in the city. We exploit this policy-induced variation to assess how Airbnb affects Berlin's rental market. Both interventions significantly reduced the overall number of Airbnb listings but affected professional hosts - defined either based on booking availability or on revenues - differentially. Using this quasi-exogenous variation in Airbnb supply, we show that the presence of Airbnb reduces the long-term rental supply. This effect is driven by professional hosts. We estimate that one additional nearby professional Airbnb listings crowds out 0.4 to 0.9 long-term rentals and increases the asked square-meter rent by 1.2 to 5.6 percent on average depending on the specification.

Keywords: short-term rental regulation, sharing economy, rents, housing market, Airbnb

Suggested Citation

Duso, Tomaso and Michelsen, Claus and Schaefer, Maximilian and Tran, Kevin Ducbao, Airbnb and Rental Markets: Evidence from Berlin. Available at SSRN: https://ssrn.com/abstract=4225800

Tomaso Duso

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

TU Berlin- Faculty of Economics and Management - Empirical Industrial Organization ( email )

Berlin, 10585
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Claus Michelsen

affiliation not provided to SSRN ( email )

No Address Available

Maximilian Schaefer

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

Alma Mater Studiorum University of Bologna ( email )

Bologna
Italy

Kevin Ducbao Tran (Contact Author)

University of Bristol, School of Economics ( email )

8 Woodland Road
Bristol BS8 ITN
United Kingdom

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