"Airbnb in the City": assessing short-term rental regulation in Bordeaux.

Abstract

Short-term rental platforms, led by Airbnb, have disrupted the tourism accommodation industry over the last decade. This disruption has encouraged policy-makers to intervene. However, little is known about how effective such interventions are. This paper empirically evaluates the impact Bordeaux's regulation has had on short-term rental (STR) activity through both a differences-in-differences and a triple-difference design. We find that regulation has had a reductive effect of over 322 rented days per month per district on average. This equates to 44% of mean reservation days and over 28 thousand less nights spent per month in STRs across the city. This effect is persistent in peripheral areas of the city, with an average effect of 35% of monthly reservation days. However, the city's attempts to limit activity stemming from targeted (commercial) listings yields mixed results as non-targeted (home-sharing) listings also seem to have modified their behavior. Additionally, analysis in the periphery paves the way for discussion about the effectiveness of one-size-fits-all STR policy design.