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| With the increasing concerns that accompany the rising trends of house sharing economies regulators impose new laws to counteract housing supply scarcity. In this paper I investigate whether the ban on short-term entire house listings activated in Berlin in May 2016 had any adverse effects from a household finance perspective. More specifically I derive short-term rental income and counter-factually compare it with long-term rental income to find that the ban by decreasing the supply of short-term housing accelerated short-term rental income but did not have any direct effect on long-term rental income. Commercial home-owners therefore would find renting on the short-term market to be financially advantageous. |
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