Airbnb Urges New York City to Reconsider Short-Term Rental Rules

The American home rental company Airbnb released yesterday a public request to officials of the city of New York in the United States asking to reconsider the regulations for short-term rentals under Local Law 18 (LL18), imposed in September last year.

“One year after passage, New York City’s unprecedented short-term rental regulations have failed to deliver on their promise to combat the housing crisis,” wrote the company’s team and added graphics, data, and quotes from experts to prove that the results with the strict regulations on short term rentals have not achieved the expected improvements.

According to Bloomberg, short-term listings on Airbnb have decreased by 83% in the past year, considerably affecting the company as in 2022 its net revenues from New York City rentals reached $85 million.

As reported by Airbnb, housing prices—one of the main reasons why the LL18 was imposed, to protect affordable housing—have kept rising and hotel prices keep soaring. “Regulators promised that banning Airbnb in New York City would unlock housing. Instead, rent climbed 3.4 percent during the first 11 months of the law,” wrote Airbnb’s team.

In order to rent an apartment, under the LL18, homeowners must get a license and comply with the basic requirements like registration with the Mayor’s Office of Special Enforcement (OSE), rent the property for more than 30 days in buildings and neighborhoods where it is allowed, and provide certificates and valid documents. OSE got over 6,500 applications from homeowners in New York, and around 38% got the license.

“New York City’s short-term rental regulations have backfired—disproportionately impacting outer borough communities, driving up travel costs, and doing nothing to solve the housing crisis,” said Theo Yedinsky, VP of Public Policy at Airbnb, “Instead of improving affordability, these regulations have priced out everyday consumers and left former hosts struggling to make ends meet.”

New York City officers have not yet responded to the short-term rental company’s demand. Airbnb also recently announced new services and luxury experiences for later this year.