We kindly invite you to the BICEPS/SSE Riga research seminar! It will take place on Thursday, April 18 at 17.00 in room 611 with the presentation:
“Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles” by Johannes Van Ommeren (VU Amsterdam), co-authored with Hans R.A. Koster and Nicolas Volkhausen (VU Amsterdam).
Online short-term rental (STR) platforms such as Airbnb have grown spectacularly. We study the effects of STR-platforms on the housing market using a quasi-experimental research design. 18 out of 88 cities in Los Angeles County have severely restricted short-term rentals by adopting Home Sharing Ordinances. We apply a panel regression-discontinuity design around the cities’ borders. Ordinances reduced listings by 50 percent and housing prices by 3 percent. Additional difference-in-differences estimates show that ordinances reduced rents also by 3 percent. These estimates imply large effects of Airbnb on property values in areas attractive to tourists (e.g. an increase of 10 percent within 2.5km of Downtown LA).
No prior registration for the seminar is necessary. For any questions about the seminar, or if you have a colleague that would like to be added to the distribution list, please write to Nicolas Gavoille.