ABSTRACT
The relatively recent worldwide expansion of the short-term rental platforms such as Airbnb has started a heated discussion on the effect of these platforms on housing prices and private and commercial rental markets. This study, using a quantitative research design, looks at the effect of Airbnb activities on house prices in 11 Norwegian cities and on rents in five major Norwegian cities. The findings show that except for the capital city of Oslo, there is little association between the number of Airbnb units in major cities and house prices and rents. However, since 2012, the growth of Airbnb in major cities, especially the capital, has been so strong that even if Airbnb’s growth halves every year until 2020, it will still capture a substantial part of the rental units in major cities, increasing the pressure on the locals seeking rental accommodations. The paper culminates with proposals for policymakers and suggestions for future research.
Subjects: Sharing Economy, Housing, Rental companies
