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.

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Author: Radoslaw Trojanek, Michal Gluszak, Michal Hebdzynski, Justyna Tanas
Document Type: article
ISSN: 2336-2839
Volume: 8
Issue: 1
Pages: 72-84
DOI code: 10.13060/23362839.2021.8.1.524
Date of publication: 15.6.2021

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