Challenges and effects of short-term rentals regulation. A counterfactual assessment of European cities

Many overtouristified cities introduced limitations to the diffusion of short-term rentals, and are struggling to guarantee their enforcement, while evidence about their impact is limited. The article provides an overview of the instruments adopted by 16 European cities, and an assessment of their effectiveness. By comparing regulated and unregulated cities, we show that the former obtained a persistent reduction in the number of listings of entire apartments, in the ratio between entire apartments and shared rooms, and in the number of professional hosts, but no significant impact on the spatial concentration of short-term rentals in the city. We also provide evidence of the effects of the diverse regulatory strategies, and of the importance of obtaining the cooperation of booking platforms.