Short-term rentals and housing financialisation. Evidence and policy innovation

Project Information

POLIS

Grant agreement ID: 891785

DOI

10.3030/891785

Project closed

EC signature date 4 May 2020

Start date 1 June 2021

End date 31 May 2023

Funded under

• EXCELLENT SCIENCE - Marie Skłodowska-Curie Actions

Total cost

€ 212 933,76

EU contribution

€ 212 933,76

Coordinated by

UNIVERSITY OF LEEDS
United Kingdom

Periodic Reporting for period 1 - POLIS (Short-term rentals and housing financialisation. Evidence and policy innovation)

Reporting period: 2021-06-01 to 2023-05-31

Summary of the context and overall objectives of the project

The economic, social and spatial impacts generated by digital platforms offering short-term rentals such as Airbnb have triggered increasingly polarised social and political debates across Europe. Existing research suggests evidence that short-term rentals advertised on Airbnb and other portals have become professionalised and that both individual and corporate investors have started to channel substantial surplus capital into this relatively novel market segment with high yields. However, there is a lack of empirical and conceptual studies examining the Airbnb-led restructuring of residential real estate investment. Based on two in-depth studies exploring the links between short-term rentals and housing financialisation in the cities of Lisbon and Barcelona, the POLIS project fills this gap and provides comparative insights about the Airbnb-led restructuring of local housing markets. Drawing on the principles of evidence-based policy making, the research also advance policy innovation for regulating this emerging sector.

To achieve these aims, POLIS was organised around three research objectives (ROs). It explored the links between the professionalisation of short-term rentals (RO1) and housing financialisation (RO2) and, in doing so, provided innovative understandings of the Airbnb-led restructuring of local housing markets. The project used empirical data gathered as the foundation for policy recommendations (RO3). The project's improved understanding of how the professionalization in the provision of short-term rentals channels investment into the housing market formed the basis for providing socially just recommendations for inclusive policy approaches towards short-term rentals.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

I conducted fieldwork in Lisbon (July 2021 - December 2021) and in Barcelona (January 2022 - April 2022). The main research method was in-depth interviews with stakeholders in the short-term rental industry in both cities. Specifically, I interviewed Airbnb property managers, Airbnb professional hosts, real estate consultants, landlords, service providers in the short-term rental sector such as tech companies that offer management systems, and officials from the city council of both cities. In total, I conducted 42 interviews. Additionally, I undertook participant observation and conducted informal interviews at three international short-term rental events organized by industry players. These events provided opportunities to collect data from public presentations and discussions. Furthermore, conducting informal interviews at these industry events allowed me to recruit participants for the in-depth interviews. In addition, I gathered and analyzed several industry reports, podcasts, and video interviews produced by short-term rentals consultancy companies. Analyzing these materials helped me gain a better understanding of investment strategies in the short-term rental sector and identify the most influential actors in this specific real estate market. Finally, I complemented the qualitative material with the spatial analysis of Airbnb listings in both cities. The database that I use was Inside Airbnb, which is open access.

The project has had impacts at academic, policy, and societal levels. I published 3 papers in top journals, and I am currently preparing 2 additional papers. I presented my research at 5 international conferences, and I was invited as keynote speakers in several meetings. In terms of policymaking, I provided advice to the Short-Term Rental Initiative of the DG Grow Unit of the European Commission. Furthermore, I received an invitation from the City Council of Lisbon to join the permanent commission that evaluates the local legislation of short-term rentals. In Barcelona, I had expert meetings with officials from the City Council, two of whom attended the final symposium of the project on the 2nd of June 2023. I also participated in outreach activities, including being interviewed in two documentaries, a radio program, and several newspaper reports. Additionally, the University of Leeds (beneficiary) invited me to present my experience as a successful Marie Skłodowska-Curie Individual Fellowship applicant. As a result, it was created an open access video on YouTube where I provide advice to future applicants on how to prepare their application.

The milestones achieved include the submission and approval of Ethics and Data Management deliverables, the development of a career plan for the researcher, the implementation of a social media strategy, the completion of field research in the two cities, the analysis of data and comparison between the two cities, the publication of 3 papers, the preparation of 2 draft journal publications, and the successful completion of a closing event on the 2nd of June 2023.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

POLIS put the analysis of short-term rentals and the professionalisation of Airbnb into conversation with literature addressing the financialisation of housing. It is the first project in doing so, and it resulted in 3 publications in top ranked journals. In addition, together with my supervisors we are preparing a conceptual paper to disclose the various ways in which short-term rentals have become a consolidated asset class for different profile of investors. We explore the investment strategies of these various actors, including institutional investors such as REITs owning portfolios of STRs to individual investors and property managers. The aim is to construct a framework that will disclose the multiple ways in which STRs advances new avenues of housing financialisation.

Additionally, as the project was exploratory, I discovered unexpected processes that are also demonstrated in the publication record. I refer to how the state at different scales has been interested in facilitating rather than controlling the expansion of short-term rentals. I further refer to the phenomenon of mid-term rentals, which is a restructuring of the short-term rental sector also mediated by digital platforms.

In terms of impact on policymaking, I was invited to provide advice to the Short-Term Rental Initiative of the DG Grow Unit of the European Commission in two occasions. Furthermore, I received an invitation from the City Council of Lisbon to evaluate the local legislation of short-term rentals. Two reports were produced after this experience. In Barcelona, I had expert meetings with officials from the City Council.

Regarding societal impacts, my active engagement with journalists and the media resulted in the participation in two documentaries, a radio programme, and several interviews for newspaper reports. The first documentary was produced by RTVE, the Spanish Public Broadcasting Company. This documentary is about Airbnb in Barcelona, and it will be broadcasted in October 2023. The second documentary was produced by the Greek Company Muzungu Productions. The documentary compares the development of Airbnb in four Southern European Cities. The film is under production.

Please note that the project's website was hold by the service of the beneficiary (University of Leeds). However, as my contract ended, the website is not active anymore.

Flyer of the final symposium