How does tourism activity impact housing prices in large urban areas?

An increasing level of tourism activity and its effect on the prices of local goods and services has been well documented by existing literature. However, its impact on local housing prices is less obvious – because tourists are generally not buying the long-term residences that local aspiring homeowners and renters are buying, this connection is less direct and thus serves as an interesting area of study. In the research that is documented in this paper, we use statistics on tourism and housing prices in different large cities from across the world to create a multiple linear regression model that allows us to investigate the strength of this relationship. We come to the preliminary conclusion that significant increases in tourism are associated with significant changes in housing prices, but areas with only marginal increases in tourism do not have significant relationships between tourism and housing prices. In our discussion section, we suggest ways that this result could be studied further.