The Changing Valuation of Short-Term Rental Amenities in Mexico During and After the COVID-19 Pandemic

With Regina López-Ley, Diego Mayorga and Stefano Molina

We study how the COVID-19 pandemic changed the valuation of amenities in the prices of short-term rental listings in Mexico, a country that had few tourism and mobility restrictions during the pandemic. Using data on the universe of short-term rental listings in Mexico from 2018 to 2023, we estimate hedonic price models and analyze how their coefficients changed for amenities associated with a lower risk of COVID-19 infection and reduced face-to-face contact. Our results show that the valuation of remote work amenities, such as workspaces, open-space amenities like beachfronts, and reduced-contact amenities, such as private spaces, increased significantly during the pandemic. Some of these valuation changes, such as those for workspaces and elevators, persist in the post-pandemic restrictions period. The results are consistent with both a changing taste for certain amenities and a change in the demographic composition of short-term rental consumers in Mexico.