Airbnb or not Airbnb? That is the question: How Airbnb bans disrupt rental markets

This study focuses on legislative bans imposed on short-term rentals (STRs) and evaluates their effects on long-term rentals in Irvine, CA. We find that contract rental prices in the long-term rental market decrease by 3.0% within approximately 2 years after the enforcement of STR ordinance. The results are primarily driven by the supply side for long-term rentals. The decline in rents is more pronounced: (1) for long-term rental units that have similar property characteristics as those listed through Airbnb and (2) for those located in geographic areas with greater Airbnb exposure before the ban was enforced.