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Home | Events Archive | Regulating the Sharing Economy: The Impact of Home-Sharing Ordinances on Commercial Airbnb Activity

Regulating the Sharing Economy: The Impact of Home-Sharing Ordinances on Commercial Airbnb Activity

  • Series
    Brown Bag Seminars General Economics
  • Speaker
    Andrea Schneider
  • Location
    Erasmus University Rotterdam, Lounge/kitchen E Building floor E1
  • Date and time

    June 09, 2022
    12:00 - 13:00

The paper can be found here.


Airbnb and other home sharing platforms experienced a meteoric rise over the past decade. In recent years, they ran into headwinds though: More and more cities enacted home sharing ordinances (HSOs) that regulate the short-term rental market. Most of the regulations aim to ban commercial short-term renting - that is, hosts who divert residential property to pure short-term rental use. We study the effect of HSOs in leading German cities on the size and the structure of the local short-term rental market. Our estimates suggest that HSOs decrease commercial short-term rental activity - but fail to abolish it: Listing days related to commercial Airbnb properties, on average, drop by 20-32%. We provide evidence that many commercial hosts remain in the market even if this violates current regulations. Moreover, HSOs (unintentionally) decrease the short-term rental activity of hosts who only occasionally rent out their residence on a short-term basis. Additional analyses show that HSOs have minor effects on long-term residential housing markets. Only relatively few properties are redirected from short-term rental use to the long-term residential market and we find no indication for a drop in long-term rental prices.

Joint work with Patrick Gauß, Sonja Gensler, Michael Kortenhaus and Nadine Riedel