The impact of Airbnb on residential property values and rents: evidence from Portugal

This article quantifies the impact of Airbnb's short-term rentals on housing affordability in Portugal. We find that on average a 1pp increase in a municipality Airbnb share results in a 3.7% increase in house prices. When zooming our analysis to the main cities of Lisbon and Porto, we find that a 1pp increase in a civil parish Airbnb share leads to a 3.2% price increase. Finally, exploring the spatial heterogeneity of the impact of Airbnb within the two cities we find strong effects localized in the historical centers and areas attractive to tourists. Compared to a low touristy parish, house prices in a high touristy parish increased by 24.3% in 2015 and 32.3% in the 1st quarter of 2016, relatively to pre-Airbnb expansion period (pre-2014Q2).