The Impact of Vacation Rentals on Housing: State of the Art and Proposals

The Impact of Vacation Rentals on Housing: State of the Art and Proposals

Ricardo Urrestarazu (University of Málaga, Spain), Alejandro Garcia Pozo (University of Málaga, Spain) and Jose Luis Sanchez-Ollero (University of Málaga, Spain)
DOI: 10.4018/978-1-7998-2224-0.ch010

Abstract

The increase in the price of housing for rent and ownership in the city of Malaga is causing a problem of accessibility to it for the most disadvantaged sectors of the municipality, coinciding at the same time with the expansion of the vacation rentals on housing. This phenomenon is characteristic of the Spanish tourist cities, with growths of this variable greater than the national average; and not only is it depressing family income already reduced in recent years, but they are influencing essential aspects of the urban morphology of the city such as its historical heritage and its commercial fabric. All this is producing a social and academic debate on what public policy proposals might be that could be made to limit the growth of the phenomenon.
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Background

In order to have a sufficiently broad perspective of the topic under study, a methodological approach to literature review was used. To do this, it has been included contributions from social scientists at national and international levels in specialized journal articles, books, and reports, in addition to data available from public bodies and national companies related to the tourism and real estate sector. Being a phenomenon of global significance and precedents in other historical moments, there are multiple studies that have been done in cities around the world where the influence of the tourism sector on access to housing was raised as a factor having influence on rising real estate prices.

Key Terms in this Chapter

Real Estate Investment Trust: Capital investment companies, which allocate these to the acquisition of all types of real estate with the intention of exploiting them on a rental basis, and which have state tax benefits.

Vacation Rentals on Housing: Type of tourist accommodations characterized by being offered in houses that share their activity with other properties dedicated to habitual and secondary residence.

Urban Housing Rental Law: National legislation that includes the main issues related to the rental of real estate.

Gentrification: Process by which the resident population of a city with fewer resources is forced to leave their places of residence by being displaced by other residents of greater purchasing power or by the action of a certain economic activity.

Housing Reservation Platform: Companies, mainly multinational, whose activity is carried out on the Internet, and which are responsible for reservation tourist housing worldwide, creating a global market, easy and accessible for owners of tourist housing and a form of cheaper accommodation with a different service to the traditional one for its customers.

Management of Tourist Accommodation Company: Companies that are dedicated to managing the operation of homes as tourist accommodations, developing management, reception, maintenance, and cleaning.

Accessibility to Housing: The degree to which citizens of a given place can exercise their right to enjoy decent and adequate housing.

Inelastic Housing Supply: A feature of the housing market whereby supply and demand do not adjust to price changes according to the logic of economic theory, so that when supply increases, prices also do.

Public Protection Housing: Housing built by the public sector of a state with the intention of providing affordable housing to the most disadvantaged sectors of the citizenry and, at the same time, energizing the economy with the activity that is generated around it.

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