Wednesday, June 26, 2019
Maxence Valentin, Pennsylvania State University - Department of Insurance & Real Estate describes The Effects of Regulating the Housing Short-Term Rental Market: Evidence From New Orleans.
Abstract: This study exploits the enactment of regulations targeting Airbnb and other short-term rental (STR) suppliers in New Orleans to identify its effects on market participants' behavior and housing values. I show that although new regulations reduced participation in the STR market as intended, STR usage increased in the neighborhoods adjacent to the properties the most affected by the amendments. I subsequently show that the new regulations depressed property values within the neighborhoods facing the tightest regulations implying that homeowners factor the option to participate in the STR market into their housing purchasing decision.