In the past decade, platforms like Airbnb and VRBO have popularized Short-Term Rentals (STRs), and many cities have taken action to regulate this emerging market. But how do these restrictions regarding STRs affect housing prices in these cities? I answer this question using Housing Price Index (HPI) data from the Federal Housing Finance Agency as well as STR restriction data on 200 large cities in the United States. Using this data, I estimate the effect of STR regulations on housing prices by employing a differences-in-differences model with variable treatment timing and find that STR restrictions lead to a 6.136 percentage point increase in HPI. Additionally, I find that harsher STR restrictions lead to a 14.84 percentage point increase in HPI, while registration-only requirements do not have a statistically significant effect on HPI. However, I do have concerns with these results in regard to omitted variable bias.</p
