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

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.

80 views

Please, login first to add a comment.
Document Type
article
ISSN
2336-2839
Volume / Issue
8 / 1
Pages
72-84
Date of publication
15.6.2021

Cite this article

copy
Trojanek, R. , M. Gluszak, M. Hebdzynski, J. Tanas 2021. ‘The COVID-19 Pandemic, Airbnb and Housing Market Dynamics in Warsaw.’ Critical Housing Analysis 8 (1): 72-84. https://doi.org/10.13060/23362839.2021.8.1.524