The Impact of Short-Term Rentals on Long-Term Housing Markets: A Panel Data Analysis of Airbnb Listings and Rental Prices in European Cities (2024–2025)

This thesis investigates the impact of short-term rental platforms, in particular Airbnb, on long-term housing markets in major European cities. Using quarterly panel data from Q1 2024 to Q1 2025 at the neighborhood level, the study analyzes how the density of short-term rental listings influences long-term rental prices and housing availability. The research focuses on select cities with varying degrees of regulatory stringency, such as Florence, Venice and Vienna, where restrictions are tighter, and Milan, Rome and Athens, where regulations are more lenient. Data on Airbnb listings is sourced from publicly available platforms, while rental market information is compiled from housing aggregators (such as Idealista and Immobiliare) through report analysis and manual data extraction. This empirical strategy combines two complementary approaches. First, a staggered difference-in-differences (DiD) design, focusing on recent regulatory interventions, including rental caps, registration requirements and zoning bans. Second, an instrumental variables (IV) framework addresses potential endogeneity in Airbnb density by leveraging regulatory shocks as instruments.