The virus that devastated tourism: The impact of covid-19 on the housing market

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22 Citations (Scopus)

Abstract

We study the causal impact of the negative shock on short-term rentals caused by covid-19 in the tourist-intensive city centre of Lisbon. Our difference-in-differences strategy uses a parish-level treatment relying on the pre-pandemic intensity of short-term rentals, using data between Q3 2018 and Q3 2020. The results suggest that landlords relocated properties into the long-term rental market, in which prices de-crease 4.1%, while listed quantities increase 20% in the treated civil parishes vis-`a-vis comparison ones. We also find evidence of an incremental negative impact on sale prices of 4.8% in treated areas. Our results are robust to the inclusion of Porto.

Original languageEnglish
Article number103774
JournalRegional Science and Urban Economics
Volume95
DOIs
Publication statusPublished - Jul 2022

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