The Impact of Short-Term Rentals on Long-Term Rental Rates in Bulgaria
Authors- Nikolay Stoenchev
University of Forestry, Sofia, Bulgaria - Yana Hrischeva
University of National and World Economy – Sofia
Keywords
short-term rentals, long-term rentals, correlation, rental regulations
Summary
The shortage of housing for the local population, the lack of financial resources for the construction of municipal housing, and the overtourism experienced by some of Western Europe’s leading tourist destinations due to the enormous number of visitors have brought to the forefront the debate on the benefits and negative effects of short-term rentals, as well as the need to examine and substantiate the potential introduction of restrictions.
In Bulgaria, an increase in tourist numbers is still generally regarded as a positive development. However, the time may not be far off when a significant share of society begins to perceive tourism growth as adversely affecting its quality of life and residential comfort. This may necessitate not only the introduction of clear regulations but also legislative amendments establishing certain restrictions.
The study provides compelling evidence supporting the introduction of restrictive measures in some European cities, such as Vienna, Milan, and Amsterdam. For Bulgaria, however, the results of the empirical analysis are less conclusive. A very strong positive correlation was identified between the number of short-term rental listings and median long-term rental prices in the six most developed real estate markets in Bulgaria: Burgas, Varna, Plovdiv, Ruse, Sofia, and Stara Zagora. However, no inverse relationship was identified between the number of short-term and long-term rental listings. Therefore, it cannot be concluded that a higher number of short-term rental listings leads to a reduction in the supply of long-term rental properties that could, in turn, be considered a factor contributing to higher rental prices. Seasonality was observed in the number of rental listings; however, this pattern, as well as the differences in median asking rents across cities, can reasonably be attributed to the specific characteristics of the respective destinations. At present, an appropriate approach would be to combine an effective registration regime with enhanced monitoring and enforcement of income tax compliance in relation to rental income.
Pages: 20
DOI: https://doi.org/10.58861/tae.di.2026.3.02
