It’s been a year since New York City passed broad regulations on short-term rentals. Airbnb, the biggest name in the short-term rental industry, said it didn’t have the intended impact and it’s time to reevaluate the rules.
A New York law went into effect in September 2023 that banned property owners from renting out homes for fewer than 30 days unless the host stayed there with the guests and registered with the city. At the time, the city claimed apps like Airbnb and VRBO exacerbated the city’s rising rents and contributed to a housing shortage.
But Airbnb cited data Tuesday, Sept. 3, that it says casts doubt on those claims one year from the law’s inception. Stays of less than 30 days fell in the city by 83% since September 2023, according to a report from Airdna.
Rent growth in New York still rose 2.4% compared to last year, while nationally it fell by 0.8%, according to data from Apartment List. Meanwhile, median rent in Manhattan crossed $5,000 for the first time ever. Apartment vacancies were also nearly unchanged at 3.4%, according to Apartment List.
Point phone camera here
Airbnb said hotel operators are the true beneficiaries of the law, with the cost of a single night in the city surging 7.4% over the last 12 months, while nationally, it rose just 2.1%. The average night in New York runs $307.75, nearly double the national average of $157.39, according to data cited by Airbnb from CoStar.
“It’s time for New York City to reevaluate LL18 and consider amendments that would at a minimum, allow homeowners to once again host guests,” Airbnb’s Vice President for Public Policy Theo Yedinsky said in a statement Tuesday. “By rolling back parts of the law, the city can increase the supply of accommodations for consumers, support resident hosts, and revitalize local businesses that depend on tourism dollars. A more sustainable, sensible and equitable model benefits residents, visitors, and the broader community – ensuring that regulations support, rather than stifle, community and economic growth.”
Short-term rental apps have been blamed for rising rents and housing shortages throughout major U.S. cities.
“People own more than one home and rent them out for profit, while others struggle to afford their first home at all,” Tatum Joerndt explained in an analysis for the Lincoln Memorial University Law Review. “Being a renter through Airbnb allows the owner to make more money off these short-term stays than they would renting the property out as a home.”
New York isn’t the only city to pass short-term rental restrictions. In San Francisco, hosts can’t rent their homes for more than 90 days unless they are staying there at the same time. They also have to pay a hotel tax and follow insurance and safety requirements.
Meanwhile in Atlanta, one must be a city resident to own a short-term rental and they can only own two. Atlanta also charges a fee for an annual rental license and an 8% tax on rental fees for each property.
The restrictions in cities like New York and San Francisco have helped push some smaller, charming destinations to the most-searched list on Airbnb.
Quincy, a rural town in central Washington, is the most-searched summer travel destination on Airbnb. Quincy is seen as a perfect escape from the city, known for beautiful hiking trails, camping spots and the river. Quincy is also home to one of the most stunning music venues in the world, the Gorge Amphitheatre. Quincy is followed by Columbia, S.C. and Las Vegas as the most-searched summer destinations.
Tags: Affordable housing, Airbnb, Atlanta, Economy, Housing Market, New York, New York City, San Francisco, vacation, Washington
They gave it a year, and they still aren’t buying it.
Airbnb is asking New York City to rethink rules on short-term rentals.
Last September a law went into effect that banned property owners from renting out their homes for fewer than 30 days unless the host lives there with the guests. At the time, they claimed apps like Airbnb and VRBO were causing rising rents and contributing to the city’s housing shortage.
But Airbnb points to data they say debunks those claims under the first year of this law.
Stays of less than 30 days in the city have fallen more than 80 percent (83%) since September, according to a report from Airdna.
But still, rent in New York was up slightly (2.4%) compared to last year while nationally rent was down slightly. (-0.8%), according to data from Apartment List. And, for the first time ever, median rent in Manhattan surpassed $5000.
Airbnb points out apartment vacancies are pretty much unchanged at 3.4%.
They say the only people benefiting are hotel operators who saw rates in the city jump 7.4% over the last 12 months compared to the national average of 2.1%. The average nightly stay in NYC is now over $300 per night according to data cited by Airbnb from CoStar.
Short-term rental apps have been blamed for rising rents and housing shortages in major cities.
The theory is explained in this analysis from the Lincoln Memorial University Law Review.
“People own more than one home and rent them out for profit, while others struggle to afford their first home at all. Being a renter through Airbnb allows the owner to make more money off these short-term stays than they would renting the property out as a home.”
New York isn’t alone in restricting short-term rentals in their city. In San Francisco, hosts can’t rent their homes for more than 90 days unless they are staying there at the same time. They also have to pay a hotel tax and follow insurance and safety requirements.
Meanwhile in Atlanta, you must be a city resident to own a short-term rental and you can only own two. Atlanta also charges a fee for an annual rental license and an 8% tax on rental fees for each property.
These restrictions in major cities may have helped push some smaller, charming destinations to the most-searched list on Airbnb.
Quincy, a rural town in central Washington was the most searched travel destination this summer on Airbnb. They came out ahead of Columbia, South Carolina and Las Vegas.
The list has merit. I’ve been to Quincy myself and it was a perfect escape from city life. It’s known for beautiful hiking trails, camping spots and the river.
What draws those summer crowds the most is that it is home to one of the most stunning music venues in the world, the Gorge Amphitheatre. Just take that in for a sec. I mean, you don’t even need the music to enjoy these views.
For Straight Arrow News, I’m Simone Del Rosario
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