Housing Affordability Risk and Tourism Gentrification in Kyoto City

Abstract

Before the Coronavirus Disease pandemic of 2019, many tourist cities suffered from over-tourism, and tourism gentrification seriously impacted the living environment for residents. This study aimed to clarify the statistical relationship between the increase in the number of accommodations―hotels and simple accommodations―and housing prices in Kyoto City, one of the world’s most famous tourist cities. As a key result, this study clarified that the price change in houses for sale was significantly related to the number of hotels in the historical center of Kyoto City. Specifically, it was found that the average price of houses for sale increased by JPY 2,013,957/USD 18,382 per hotel in a neighborhood district. In addition, the average price of houses for sale increased by JPY 6,412,102/USD 58,526 from 2015 to 2019. Compared to previous studies, in the historical center of Kyoto City, the novelty of our finding is that the cause for increasing housing prices was not simple accommodations but hotels, and the effect of housing prices was not on houses for rent but those for sale. These results are significant because they indicate that tourism gentrification causes housing affordability risk for the local communities, including young households.