Research: When Airbnb Listings in a City Increase, So Do Rent Prices
by Kyle Barron, Edward Kung and Davide Proserpio, Harvard Business Review
Policy makers around the world are struggling to find the best way to regulate home-sharing platforms like Airbnb. On the one hand, these platforms allow homeowners to make money when they have more room than they need. On the other hand, absentee landlords are reducing the housing supply, which, in turn, increases the cost of living for local renters. According to our results, one way to reduce the latter effect while retaining the benefits of home-sharing would be to limit how many homes can be added to the short-term rental market, while still allowing owner-occupiers to share their extra space.
..Research: When Airbnb Listings in a City Increase, So Do Rent Prices