The effect of airbnb in the real estate market

Airbnb is a new phenomenon and many people claim to be triggering an unstoppable growth of real estate prices. This project analyzes which part of it is true and which is the effects on prices of the owner5occupied housing market in the city of Amsterdam due to the implementation of the platform Airbnb. The analysis has consisted in geo5localizing both the houses sold since 1986 until 2018 and the Airbnb units. Taking the number of Airbnb, in two different radius, hedonic price models have been used to find the impact of it, considering the location, physical, environment and time effects of each observation. Two techniques have been used, a cross5sectional for the whole dataset and a panel data for those houses repeatedly sold during the period. Both approaches give a positive and significant effect on the housing market, which amounts from 3% to 33%, on average, depending on the method and the case chosen.