How local governments have responded to the Explosion of Airbnb business Model
Hans Koster, Jos van Ommeren and Nicholas Volhaussen have authored a detailed report titled: Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles. The paper takes a look into how local governments around the globe have responded to the short-term rentals such as Airbnb business.
The authors have observed that Airbnb business model has led to rising house prices more especially in areas where tourism is common. On the other hand, renters have emerged as winners.
Below is an extract from the paper:
“Short-term rental platforms such as Airbnb have grown spectacularly in recent years. Since its launch in 2007, Airbnb has grown into a multibillion dollar business, now offering more than 4.5 million listings in over 190 countries worldwide. Airbnb allows individuals to list their spare room or entire apartment for a self-established price to potential guests from all over the world. Particularly in heated housing markets, the new business model developed into an attractive opportunity for generating alternative income streams…” Voxeu.org
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