Economia e Commercio | Seminari Didattici | Seminari e Convegni
From Sharing to Capitalizing: Assessing the Rise of Airbnb in Housing Prices
Webinar | Julie Le Gallo
From Sharing to Capitalizing: Assessing the Rise of Airbnb in Housing Prices
Webinar
Webinar
ALLAM Yacine (CESAER, INRAE Dijon), Breuillé Marie (CESAER, INRAE Dijon), Julie LE GALLO (CESAER, Institut Agro Dijon),
From Sharing to Capitalizing: Assessing the Rise of Airbnb in Housing Prices
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Abstract
This paper examines the impact of short-term rental (STR) listing density on real estate transaction prices in Metropolitan France. Using data from Airbnb listings and real estate transaction prices over the period 2018-2020, we cover the entire country, providing robust external validity, and focus on the spatial variations within different zones, including central cities, secondary cities, suburbs, and countryside areas. Using an instrumental variable approach, we show that a 1\% increase in STR listing density leads to an 11\% increase in real estate transaction prices. We also find that the effects vary across different locations, with central municipalities experiencing higher price increases than other areas. Surprisingly, rural municipalities, particularly those without significant tourist infrastructure, exhibit substantial price increases, suggesting that Airbnb has made these previously less-visited areas more accessible to travelers.,This study contributes to the literature in three ways: (i) it provides a comprehensive analysis of the impact of STRs on the real estate market in the most touristic country in the world, enhancing external validity; (ii) it develops a novel instrument capturing the heterogeneity of territories, which is crucial in analyzing tourism dynamics; and (iii) it explores spatial heterogeneity at the national level, considering the unique characteristics of France's diverse municipalities.
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