Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267443 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15706
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We estimate the causal impact of a 2018 zoning reform that banned new short-term rental registries in some parts of Lisbon. The short-term rental licence expires when the house is sold, hence the ban removes the option value of short-term renting a property. We rely on two administrative data sets on short-term rental registries and real estate transactions, complemented with Airbnb data on listings and prices. We employ a difference-in-differences estimation taking advantage of the spatial discontinuity in the ban. We document a spike in newly registered housing units, between the announcement and the implementation of the ban. The reform decreases real estate prices by 8%, mostly in two-bedroom dwellings, for which the price drops 20%. We conclude that heterogeneous effects are key to understanding the backlash against short-term rentals.
Subjects: 
Airbnb
policy analysis
housing market
short-term rental
Portugal
JEL: 
R12
R21
R30
Document Type: 
Working Paper

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