> how come municipalities that ban airbnb do not see rental prices drop materially? When someone is looking to move to an area, they're looking to move to the

> how come municipalities that ban airbnb do not see rental prices drop materially? When someone is looking to move to an area, they're looking to move to the area, not a specific municipality. If the municipality that banned AirBnB were isolated enough from other communities that did allow AirBnB you would likely see rents decrease as supply would meaningfully increase when the AirBnBs are banned. But in practice, the number of AirBnBs in the municipality that bans them relative to the number of houses in the same rental market area is small.