The Effect of Airbnb on Real Estate Prices. A Panel Data Regression Study on Variables Affecting Real Estate Prices

Abstract

The real estate prices in Norway have increased steadily over the last 15 years. With the Norwegian housing policy encouraging the populations to own instead of renting, it is a hot topic. With the rise of Airbnb and its simplicity for hosts and visitors, the purpose of this study is to measure the effect of Airbnb rentals on real estate prices in Norway. The study further explores the effect of Airbnb in specific regions and how district and city regions affect differently. Airbnb is used as an income variable to emphasize the added income short-term rental provides households. The thesis is a panel data regression study on variables affecting real estate prices. The thesis concludes there is statistical support for the idea of Airbnb increasing real estate prices.