Barcelona as a case study for the effectiveness of short-term rental market regulations

Abstract

The objective of this paper is to analyze the effectiveness of regulatory developments in the short-term rental (STR) market, using Barcelona as a case study. We examine the evolution of regulation in Barcelona and assess the impact of major policy changes on STR supply metrics. We follow an interdisciplinary research plan to answer the research questions. First, an overview of the main policy changes and enforcement activities is presented. Second, changes in the main characteristics of the Airbnb supply are examined over the period 2015–2023. A counterfactual analysis is used to assess the overall impact of regulation. Finally, the conclusions are verified through fieldwork with stakeholders in the city of Barcelona. The results suggest that enforcement and permanent control are key to reducing the expansion of the market, as the legal instruments introduced to regulate STRs, particularly licensing, are not sufficient on their own. Additionally, a significant change in STR supply occurred following a data sharing agreement between the municipality and Airbnb. Furthermore, the counterfactual analysis suggests that in a laissez-faire scenario, the total number of STR listings on Airbnb would be almost double: 20,000 instead of the measured 10,700. We conclude by suggesting policy recommendations for other cities.