New York City’s new law banning most short-term Airbnb rentals, which came into effect in early September, has had a significant impact on the market. As few as 2 percent of the city’s previous 22,000 short-term rentals have been registered with the city. Many illegal listings have moved to social media and lesser-known platforms, with some still appearing on Airbnb itself. The number of short-term Airbnb listings in the city has dropped by more than 80 percent, going from 22,434 in August to just 3,227 by October 1, as reported by Inside Airbnb, a watchdog group monitoring the platform. However, only 417 properties have been officially registered with the city, indicating that very few short-term rentals have received permission to continue operating. This crackdown has given rise to a “black market” for short-term rentals in the city, according to Lisa Grossman, a spokesperson for Restore Homeowner Autonomy and Rights (RHOAR), a local group that opposed the law. Grossman notes that since the ban, the short-term rental market has gained traction on platforms like Facebook. She says, “People are going underground.”
The short-term rental landscape in New York has dramatically shifted due to this law. Individuals are turning to platforms like Craigslist, Facebook, Houfy, and others, where they can search for guests or properties without the oversight of Airbnb-like booking platforms. The increase in demand for such rentals is expected to drive hotel prices higher. A search for short-term stays on Airbnb reveals a limited number of listings across the city. Many previous listings have transitioned into stays of 30 days or longer, thus avoiding the need for city registration. AirDNA, a short-term rental intelligence firm, found just 2,300 short-term Airbnb rentals in New York City by late September. AirDNA’s data shows that long-term rentals now make up 94 percent of Airbnb’s listings in the city, reflecting the stricter requirements for short-term rentals. Hosts must meet stringent criteria to be approved for short-term rentals, such as allowing only two guests and the host being present during the stay. However, some hosts are attempting to work around these rules. Many Airbnb listings include an option for hosts to enter a registration number or claim an exemption. Despite these efforts, some entire units still appear to be available for short stays and do not seem to qualify as hotels or exempt units.
Inside Airbnb’s data shows that approximately 2,300 short-term properties have labeled themselves as exempt from registration on Airbnb, with several more not specifying their status. Another 35,000 are designated as long-term rentals. These numbers were not confirmed by Airbnb. The Mayor’s Office of Special Enforcement in New York, responsible for the registration program, has not provided an update on the total number of registered short-term rentals or whether violations have been issued for illegal listings. The law in New York City is just one example of how cities are responding to the growth of short-term rentals. Supporters of the rule argue that it will free up apartments for local residents facing high rents and housing shortages. However, some, including small landlords, believe it will eliminate a flexible source of income without significantly addressing the housing crisis. Smaller landlords are lobbying New York City councilors to revise the rules to allow them to continue renting out their units. RHOAR represents hosts who own and occupy single-family homes or homes with two dwelling units. They argue that they have been unfairly grouped with larger landlords.
Grossman states that RHOAR has met with city councilors in an attempt to change the law to permit smaller hosts to legally offer short-term rentals. Beyond Airbnb, people are posting listings and seeking short-term rentals on Facebook groups. Craigslist advertisements for rentals include weekly or nightly prices. These off-platform rentals pose risks to both guests and hosts who may not have the protection of larger companies like Airbnb. As for Airbnb, it is turning its focus away from New York City, which was once its largest market. Airbnb CEO Brian Chesky has mentioned that the company is exploring longer rentals, as well as car rentals and dining pop-ups. The company is also looking to expand its presence in Paris, its largest market and the host of the 2024 Summer Olympics. “I was always hopeful that New York City would lead the way—that we would find a solution in New York, and people would say, ‘If they can make it in New York, they can make it anywhere,'” Chesky said in September. “I think, unfortunately, New York is no longer leading the way—it’s probably a cautionary tale.”
Source: WIRED