On March 22nd, Bernardo Forbes da Costa from Nova SBE will present the study “The impact of short-term rentals on housing supply: Evidence from Lisbon”.
This article quantifies the impact of Airbnb’s short-term rentals (STR) on housing stock in the municipality of Lisbon, Portugal, using a policy change that eased the process of entering the STR market. We find evidence of an increase, as a result of the reform (post-2014Q2) of 38.6%, and 26.4% for additions, and alterations to the housing stock, respectively, for civil parishes with a high concentration of Airbnb. These civil parishes coincide with areas with physical or regulatory constraints which impede new construction. Accordingly, we find no evidence of policy effects in the number of new units of housing stock, when compared to parishes with lower Airbnb share. Finally, we find that information requests, a permit that precludes and facilitates the issuance of ‘final’ permits, also increase by 41.8%. Overall, our results suggest that STR creates incentives for the revitalization of the housing stock, which in turn may drive housing costs up through amenity effects and property value increases.