Plegt, Rick (2024) How local policy impacts the supply and price of short-term rentals. A case study on the municipality of Groningen. Master thesis.
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Abstract
The rapid growth of online short-term rental (STR) platforms, such as Airbnb, has substantially transformed urban housing markets, impacting housing affordability and availability. This thesis examines the impact of the 2023 municipal policy in Groningen, the Netherlands, which limits the tourist rental of private residences to 30 nights per year. Utilizing theories of housing market dynamics and urban economic impacts of short-term rentals, this study employs a Difference-in-Differences (DiD) methodology to analyze the effects on the supply and price dynamics of STRs, utilizing data from Airbnb across multiple municipalities for comparative analysis. The findings indicate that the policy led to a marginal but statistically significant increase in the average daily revenue (ADR) of STR properties in the municipality of Groningen. Additional research revealed that the anticipated decrease in the number of properties available for rental periods exceeding 30 nights was minimal, indicating substantial non-compliance among hosts. These results underscore the complexities of STR market regulation and highlight the necessity for robust enforcement mechanisms. The study contributes to Economic Geography, Urban Studies, and Housing Policy by providing insights into the interplay between local policy and STR markets, informing future policy development to prevent exacerbating housing affordability issues.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Economic Geography |
| Supervisor: | ODriscoll, C. |
| Date Deposited: | 23 Jul 2024 12:14 |
| Last Modified: | 23 Jul 2024 12:14 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4657 |
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