Beschreibung:
We estimate the causal impact of a 2018 zoning reform that banned new short-term rental registries in some parts of Lisbon. The short-term rental licence expires when the house is sold, hence the ban removes the option value of short-term renting a property. We rely on two administrative data sets on short-term rental registries and real estate transactions, complemented with Airbnb data on listings and prices. We employ a difference-in-differences estimation taking advantage of the spatial discontinuity in the ban. The reform decreases real estate prices by 9% in the treated areas, vis-`a-vis control ones, with no effect on Airbnb listings or prices. We document a spike in shortterm rental registries, between the announcement and the implementation of the ban, suggesting that the value of the option to short-term rent a property is an important determinant of real estate prices