The Impact of Airbnb on Long-Term Rental Housing: The Case of Ljubljana

Abstract

Airbnb has become a fixture in the development of global cities. It especially impacts cities’ residential characteristics. The company works with the concept of the sharing economy, the essence of which is the exchange of services or goods between individuals who set the rules of operation without generating profits, but together generate more revenue. It insists that it does not represent a form of direct competition with other urban accommodation services and that it merely seeks to expand the tourism market. Nonetheless, this article proceeds from the assumption that Airbnb is influencing and transforming the housing market of the cities it operates in. It focuses on Ljubljana, which until 2019 had a record number of international arrivals and overnight stays. The findings confirm that short-term Airbnb rentals have affected the long-term rental market in Ljubljana. They also show that a very large share of rentals through Airbnb take place in the grey economy. However, the analysis of cases from selected European cities showed that, in addition to the drawbacks described, Airbnb also has positive effects on the development of cities. It is therefore necessary to accept and adapt appropriately to this global phenomenon through specific measures, such as those proposed in the conclusion for Ljubljana.