Airbnb Urges NYC to Reconsider Short-Term Rental Regulations

On Tuesday, Airbnb called on New York City to reconsider regulations on short-term rentals implemented in September 2023, arguing that the new rules have led to higher prices for travelers without addressing the housing market issues they intended to combat.

Local Law LL18 and Its Impact:

The regulations, known as Local Law LL18, require that hosts be permanent occupants of the units they rent out and register with the city before listing their properties on platforms like Airbnb. According to Airbnb, this law has “failed to combat the housing crisis” it aimed to address.

Since the law took effect, the number of Airbnb listings in New York City allowing stays of under 30 nights has plummeted by 83%, as data analytics firm Airdna reported in August.

Airbnb’s Arguments Against the Law:

Airbnb points to data from Apartment List showing that vacancy rates for apartments in New York City have remained steady at 3.4% since the law’s implementation, suggesting that the regulations have not significantly impacted the housing market.

Furthermore, Airbnb claims that the city’s travel cost has risen. Hotel rates in New York City increased by 7.4% year-over-year in July, compared to a 2.1% increase nationwide, according to data from Co-Star, which Airbnb cited.

Call for Regulatory Changes:

In its blog post, Airbnb argued that rolling back parts of Local Law LL18 would increase the availability of accommodations for travelers, support local hosts, and boost businesses that rely on tourism.

“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,” the company stated.

Legal and Government Response:

The New York City mayor’s office and the Office of Special Enforcement have not yet responded to Airbnb’s calls for reconsideration.

Last year, a New York judge dismissed Airbnb’s lawsuit challenging the local law, signaling the city’s firm stance on regulating short-term rentals.