Comment Letâ(TM)s do some real math (Score 3, Interesting) 64
Rather than assumingâ¦
1,200,000 hotel rooms in Spain
26,000,000 houses in Spain
Do you honestly think 65,000 houses, of which ONLY 5,800 are going to be banned will make any difference. Itâ(TM)s absolutely absurd to think Airbnb drives any market changes. It represents 5% of the hotel market, 0.25% of the housing market.
The average price of a house in Spain is $3000. If 0.25% of the houses are taken off the market, and assuming demand stays constant with a price elasticity of demand of -0.5, the average price of the remaining houses would increase by 0.5%, or $15, to $3,015.
I seriously doubt Airbnb is your problem, I have done similar analysis in other markets and itâ(TM)s the same story, Nee York for example.
References:
https://www.spanishpropertyins....
https://www.cbre.co.uk/insight...).