Could Helpful Short-Term Rental Platforms be Negatively Affecting the Housing Market?
Session Number
D02
Advisor(s)
Liad Wagman, Illinois Institute of Technology
Location
B-108
Start Date
28-4-2016 8:25 AM
End Date
28-4-2016 8:50 AM
Abstract
Short term rental platforms such as Airbnb provide cost efficient rooms for tourists. However, it also can cause housing prices to fluctuate, making it hard for some areas to retain local residents. In order to evaluate Airbnb's effect on the housing market, we collected data from different towns on Anna Maria Island, Florida. The three towns we evaluated were: Anna Maria, Holmes Beach and Bradenton Beach. Anna Maria and Bradenton Beach had zoning laws that allowed residents to use Airbnb, while Holmes Beach prohibited its use. We recorded the data we found on the average price of houses using the houses parcel ID in Excel and then evaluated in Stata. By comparing the most recent average price of houses and the second most recent average price of houses in the two areas, we could judge the net increase of prices in those areas. The city of Anna Maria, which allowed Airbnb, had nearly double the net increase in home prices than Holmes Beach, which did not allow Airbnb, supporting the hypothesis that Airbnb raises housing prices.
Could Helpful Short-Term Rental Platforms be Negatively Affecting the Housing Market?
B-108
Short term rental platforms such as Airbnb provide cost efficient rooms for tourists. However, it also can cause housing prices to fluctuate, making it hard for some areas to retain local residents. In order to evaluate Airbnb's effect on the housing market, we collected data from different towns on Anna Maria Island, Florida. The three towns we evaluated were: Anna Maria, Holmes Beach and Bradenton Beach. Anna Maria and Bradenton Beach had zoning laws that allowed residents to use Airbnb, while Holmes Beach prohibited its use. We recorded the data we found on the average price of houses using the houses parcel ID in Excel and then evaluated in Stata. By comparing the most recent average price of houses and the second most recent average price of houses in the two areas, we could judge the net increase of prices in those areas. The city of Anna Maria, which allowed Airbnb, had nearly double the net increase in home prices than Holmes Beach, which did not allow Airbnb, supporting the hypothesis that Airbnb raises housing prices.