Airbnb or not Airbnb? That is the question: How Airbnb bans disrupt rental markets

Abstract

This study focuses on legislative bans imposed on short‐term rentals (STRs) and evaluates their effects on long‐term rentals in Irvine, CA. We find that contract rental prices in the long‐term rental market decrease by 3.0% within approximately 2 years after the enforcement of STR ordinance. The results are primarily driven by the supply side for long‐term rentals. The decline in rents is more pronounced: (1) for long‐term rental units that have similar property characteristics as those listed through Airbnb and (2) for those located in geographic areas with greater Airbnb exposure before the ban was enforced.

Sharing Homes and Beds: Baptist-Bootlegger Coalitions and the Politics of Authenticity in the Regulation of Los Angeles's Short-Term Rental Markets

“…The less popular but more veteran HomeAway/VRBO consisted almost entirely of vacation rentals, and thus, were concerned about regulations that would prohibit rentals of entire units. Along with another platform that largely represented commercial hosts, AJJK Inc. (Wheatley 2018), they spent close to half a million dollars on lobbying. 17 Additionally, HomeAway/VRBO underwrote the efforts of the Los Angeles Short-Term Rental Alliance (LASTRA), 18 a group that eventually dissolved before the passage of the ordinance.…”