Seminar: Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles

Online short-term rental (STR) platforms such as Airbnb have grown spectacularly. We study the e ects 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% and housing prices by 3%. Difference-in-differences estimates show that ordinances reduced rents by 3%. These estimates imply large effects of Airbnb on property values in areas attractive to tourists (e.g. an increase of 14% within 5km of Downtown LA).