Regulating Short-Term Rental Housing: Evidence From New Orleans
56 Pages Posted: 17 Feb 2019 Last revised: 28 May 2020
Date Written: May 27, 2020
This study examines the effects of regulations targeting Airbnb and other short-termrental (STR) suppliers in the urban center of New Orleans. I show that although the new ordinances reduced participation in the STR market as intended, STR usage actually increased in the neighborhoods adjacent to areas the most affected by the regulations.I subsequently show that the new regulations depressed property values in the neighborhoods facing the tightest regulations by approximately 30%, implying that homeowners factor into their housing purchasing decisions the option to participate in the STR market.
Keywords: Property Rights, Policy Analysis, Short-Term Rental Market, Housing Values
JEL Classification: K11, R31, R52, Z30
Suggested Citation: Suggested Citation