Abstract
In recent decades, the analysis of residential rental prices in Spain has gained increasing attention. From a socio-economic viewpoint, the increase in long-term rentals compared to new home purchases by the new generations has led researchers to examine phenomena such as the growth of the tourism sector or foreclosures. This paper uses a panel data model to analyze the influence of the rate of foreclosure evictions and number of tourist apartments on residential rental prices in 50 provinces of Spain for the period 2015–2018. The results show that an increase in the number of tourist apartment vacancies increases residential rental prices, while an increase in the rate of foreclosure evictions causes residential rental prices to fall.
Highlights
The real estate market is an important economic and social indicator that reflects the degree of development of a territory
The control variables specified in the model confirm the expected results, namely, the effect of DEN, GDP_PC, and OCP_DWL are positive with respect to residential rentals in the provinces
This article has attempted to explain the link between the residential rental market and two important social and economic phenomena in Spain: the strategic and economic role of the tourism sector and the problem of evictions
Summary
The real estate market is an important economic and social indicator that reflects the degree of development of a territory. It is well known that this problem came to a head following the financial, economic, and social crisis of 2008 due to the loss of confidence in subprime mortgages that triggered the global Great Recession; a problem that was further aggravated in Spain by the bursting of the speculative real estate bubble. The transformation of the tourism accommodation sector due to the rise in tourist apartments has led to a substantial change in tenants’ perceptions of the residential rental market [3,4]. Since the emergence of Airbnb in 2008, the number of tourist apartments has grown exponentially in direct competition with the traditional hotel sector [5,6] and the long-term rental market. The rapid expansion of these accommodations in what were formerly non-tourist areas can cause the displacement of the local population [7]
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