A Comparison of Short-Term and Long-Term Rental Market in an Italian City

Abstract

The increasing trend of the amount of properties entering in the short-term rental market has been involving most of global and European capitals. Latest innovative computer technologies, especially digital platforms, the availability of a housing stock until now underutilized or unused and changing styles of travel, concurrently, are the factors that have determined the success of Airbnb. The opportunity to obtain an extra income makes housing owners behaving as businesspeople, and therefore, entering their properties in the short-term rental market, when the latter is particularly profitable compared to the long-term rental market. However, the extent of this profit, and how it is distributed spatially between different hosts, requires some analysis considering specific conditions about the local real estate market. This research present compares the profitability of the two rental market segments in the city of Bologna. This study integrates in a research field, both at international and at national sphere, currently.