Agent-Based Simulation on Social Factors in the Amsterdam Housing Market

Master thesis (2019)

Authors

A.W.F. Overwater Electrical Engineering, Mathematics and Computer Science

Contributors

N. Yorke-Smith Algorithmics - EEMCS (mentor)
Faculty
Electrical Engineering, Mathematics and Computer Science, Electrical Engineering, Mathematics and Computer Science
Copyright: © 2019 Arnold Overwater
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Published Date

04-04-2019

Language

English

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Faculty

Electrical Engineering, Mathematics and Computer Science

Abstract

Gentrification, displacement and social exclusion has been a topic of debate in the city of Amsterdam, the Netherlands. We use an agent-based model (ABM) to research these problems and policies to alleviate them. We focus on two phenomena, being short-term holiday rentals of homes and a universal basic income. Short-term holiday rentals is a new peer-to-peer concept mostly involving web services such as AirBnb. Lately this has caused controversies among communities in touristic areas, since it contribute to increased housing prices and overall gentrification. We build on an existing ABM towards the city of Amsterdam and call it 'Gentaxelling Amsterdam'. Our model simulates residential migration based on income and house pricing. A municipal basic income experiment, which is sustained by the population, has been added. At the same time we research the effect of short-term holiday rentals by letting tourist agents visit the homes. Although this extra income may temporarily prevent displacement, it has an effect on the housing price. This is one of the first ABMs that has investigated this type of tourism. Empirical analysis has shown tourism has caused considerable changes in housing prices and population development. Basic income did not show any empirical results and asks for further study.