The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw Cover Image

The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw
The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw

Author(s): Radosław Trojanek, Michał Głuszak, Michal Hebdzynski, Justyna Tanas
Subject(s): Rural and urban sociology, Socio-Economic Research
Published by: AV ČR - Akademie věd České republiky - Sociologický ústav
Keywords: housing market; Airbnb; COVID-19

Summary/Abstract: In this study, we analyse the impact of COVID-19 on house rents and prices in Warsaw, the capital of Poland. Hedonic indexes indicate a slight increase in prices (ca. 1.2%) and a substantial drop in long-term rents (ca. -7.7%) between March 2020 and December 2020. The largest decline in rents occurred in centrally located neighbourhoods, which was largely due to the inflow of new housing supply from the short-term rental market (the Airbnb Warsaw market shrank by almost 30% in December 2020 y/y). Using hedonic methods, we show the effect of the shrinking Airbnb market on the drop in long-term rents. The study indicates the elasticity of rents with respect to Airbnb supply, with a 1% change in Airbnb listings leading to a 0.031% change in rents.

  • Issue Year: 8/2021
  • Issue No: 1
  • Page Range: 72-84
  • Page Count: 13
  • Language: English