In view of the misappropriation of residential property by vacation rental platforms such as Airbnb and others, the German Institute for Economic Research (DIW) has published a study that examines how the renting out of private residential space as vacation accommodation affects rents in the neighborhood. The study, "Airbnb and Rents: Evidence from Berlin," takes an exemplary look at the Berlin housing market and the impact of Airbnb & Co. on rents. The study is also a contribution to the topic on the European market. Previously, other market reports from Europe illustrated that short-term rentals have an impact on rents in the neighborhood.
The results of the analyses show that the prices for monthly rent increase by at least seven percent per square meter if living space within a radius of 250 meters is offered or rented out as a vacation home by online providers. If this dwelling is rented out as a vacation home for six months or longer, rental prices even increase to thirteen percent per square meter. The study also shows which regulations exist in the different federal states and how these and the ban on misappropriation have affected the supply of rental platforms. The research in Berlin showed that the ban on the misappropriation of space, which has been in place since 2014, has already had an impact.
The ban states that private residential space may only be rented out to tourists as vacation homes with a permit. The transitional period for the ban ended in spring 2016; since then, the supply of vacation rentals in the relevant online databases has declined by eight to ten entries per square meter. In addition, the regulations were tightened in 2018. Owners and tenants who rent out their apartments as vacation homes are subject to mandatory registration. Since then, fines have been imposed for violations. Together with other European cities, the municipalities of Berlin, Munich and Frankfurt have drawn up a position paper calling for stricter regulations by European institutions.
Source: DIW
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