Work

Better Tax Enforcement Moderates Airbnb’s Pressure on Housing Costs

Year: 2025

Type: article

Abstract: The growing popularity of home-sharing platforms such as Airbnb, partly fueled by hosts’ ability to evade local taxes and regulations, has been shown to elevate housing costs by reallocating long-term housing units to the short-term rental market. This study assesses whether enhanced tax enforcement can mitigate this trend. We analyze staggered tax collection agreements between Airbnb and Florida counties, wherein Airbnb collects taxes from the hosts directly. Using a difference-in-differences methodology, we find these agreements significantly slow the growth of housing costs, highlighting the importance of tax policy in addressing the sharing economy’s influence on housing affordability.

Source: Journal of Financial and Quantitative Analysis

DOI: 10.1017/s0022109024000723

Authors: Jesse A. Ellis, David G. Kenchington, Jared D. Smith, Roger M. White

Institutions: North Carolina State University, Arizona State University

Language: English

Topic: Sharing Economy and Platforms

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Sustainable cities and communities, Peace, justice, and strong institutions, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,550