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Rent gap reloaded:: Airbnb and the shift from residential to touristic rental housing in the Palma Old Quarter in Mallorca, Spain
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Social and Economic Geography.ORCID iD: 0000-0002-3953-4152
2019 (English)In: Urban Studies, ISSN 0042-0980, Vol. 56, no 13, p. 2709-2726Article in journal (Refereed) Published
Abstract [en]

In light of the advent of Airbnb, rent gap theory can be helpful for understanding how tourist rentals affect residential rental housing. It is argued that on those properties currently rented to residents, rental payments are not only ‘actual ground rent’, but also ‘potential ground rent’. The shift from a residential to a touristic use of rental housing thereby creates a potential ground rent. Taking as a case study the Palma Old Quarter in Mallorca, Spain, this paper analyses the evolution of the stock, prices, and revenues of residential rentals vis-à-vis tourist rentals and finds that, because it is more profitable to rent to tourists than to residents, the number of houses listed on Airbnb has increased, housing affordability for residents has shrunk, and the threat of displacement has increased.

Place, publisher, year, edition, pages
Uppsala, 2019. Vol. 56, no 13, p. 2709-2726
National Category
Economic Geography
Research subject
Social and Economic Geography; Geography
Identifiers
URN: urn:nbn:se:uu:diva-392566DOI: 10.1177/0042098018803261OAI: oai:DiVA.org:uu-392566DiVA, id: diva2:1348972
Available from: 2019-09-06 Created: 2019-09-06 Last updated: 2019-10-09Bibliographically approved

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Yrigoy, Ismael
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CiteExportLink to record
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  • apa
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