Events
Mon
11/04
Seminar @ Cornell Tech: Davide Proserpio
The Effect of Home-Sharing on House Prices and Rents: Evidence from Airbnb
We assess the impact of home-sharing on residential house prices and rents. Using a dataset of Airbnb listings from the entire United States and an instrumental variables estimation strategy, we show that Airbnb has a positive impact on house prices and rents. This effect is stronger in zipcodes with a lower share of owner-occupiers, consistent with non-owner-occupiers being more likely to reallocate their homes from the long- to the short-term rental market. At the median owner-occupancy rate zipcode, we find that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in house prices. Finally, we formally test whether the Airbnb effect is due to the reallocation of the housing supply. Consistent with this hypothesis, we find that, while the total supply of housing is not affected by the entry of Airbnb, Airbnb listings increase the supply of short-term rental units and decrease the supply of long-term rental units.
Speaker Bio
Davide Proserpio is an Assistant Professor of Marketing at University of Southern California Marshall School of Business. In his research, Professor Proserpio seeks to measure and quantify the impact of digital data and platforms on industries and markets, and most of his work focuses on the empirical analysis of a variety of companies including Airbnb,TripAdvisor, and Expedia. Professor Proserpio holds a B.S. from Politecnico di Milano (Milan, Italy), a M.S. from Carlos III University (Madrid, Spain), and a Ph.D. in Computer Science from Boston University.