Crime and Perceived Insecurity as Determinants of Housing and Tourist Accommodation Prices: A Case Study of Barcelona

Abstract

This study examines how crime rates and perceived insecurity influence the prices of Airbnb accommodations and the price per square meter of traditional housing in the city of Barcelona (Spain). We estimate two ordinary least squares (OLS) regression models and two geographically weighted regression models. All regression models include additional control variables grouped into three categories: insecurity, household or population structure, and the socio-spatial transformation of the neighborhood.

The results indicate that crime is not associated with housing prices, whereas perceived insecurity, national heterogeneity, and the arrival of residents from high-income countries play a key role in both tourist accommodation prices and price per square meter. The influence of these factors on housing prices varies substantially across neighborhoods. These findings suggest that the effect of crime on housing prices may be mediated by other structural neighborhood factors. This underscores the need for a neighborhood-centered approach, rather than analyzing the effect of each individual variable in isolation.