Short-Term Rental Bans and Housing Prices: Quasi-Experimental Evidence from Lisbon

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15706

Classification and Topics

• Classification: Wirtschaft ; Size and Spatial Distributions of Regional Economic Activity ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General
• Subject: Airbnb ; policy analysis ; housing market ; short-term rental ; Portugal

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gonçalves, Duarte ; Peralta, Susana ; Pereira dos Santos, João
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/267443
• Last update: 10.03.2025, 11:42 AM CET