NYC cracks down on short-term rentals, threatening platforms like Airbnb
Checkin’ my Marriott points… Short-term rentals in the Big Apple could become as rare as a one-bedroom for less than $3K. Starting this week, hosts must register to rent their places for stays under 30 days. To qualify, they have to live at the rental property during stays and are limited to two guests. Up till now, lots of short-term rentals (STRs) operated under the radar because the city wasn't monitoring listings. Now that registration is necessary, platforms like Airbnb and Vrbo could see more slammed doors.
Locked out: Last month a New York judge dismissed an Airbnb lawsuit that argued the new legislation is a "de facto ban" against its biz.
Open house: Airbnb made $85M from short-term rentals in NYC last year, a city official said, though Airbnb disputed that figure. More than half of that revenue reportedly came from illegal listings (think: owner not present). Over half of hosts have multiple listings.
When all your neighbors host on Airbnb… NYC officials are trying to curb a housing shortage that’s driven rent prices to record levels (short-term rentals are exacerbating the housing affordability problem). While STRs give travelers more options, they can disturb neighbors (picture: college parties). Meanwhile, some property owners depend on income from spare bedrooms or empty apartments to make ends meet, and STR restrictions may prevent them from cashing in on their extra space.
Short-term backlash is a long-term trend… Gotham is just one of many cities trying to curb STRs. A few examples: Dallas began limiting STRs to specific neighborhoods in June, eliminating nearly half of its listings. Memphis requires STR licenses as of this year. LA’s short-term-rental listings have plunged 70%+ since the city cracked down on its rental laws in 2020.