Short-term rental platforms’ contrasting effects on neighborhoods: the case of urban destinations on the French Riviera

This paper aims to analyze the conditions under which the growth of short-term rental platforms affects standard rents, focusing on key destinations on the French Riviera. Following a literature review, we develop a simplified model capturing the characteristics of French Riviera destinations and predict a positive effect on rents in the short run when there is a high pressure from short-term rentals. We validate these predictions using data from AirDNA pertaining to short-term rentals offered on the Airbnb platform, combined with data on long-term rentals in the cities of Nice and Cannes.JEL classification: L83, R31, Z31, L85, L86.