In This Story
Airbnb ABNB+0.55% wants to re-enter the New York City market — claiming the Big Apple’s laws restricting its use haven’t had their intended impact.
Local Law 18 went into effect last September in New York City, banning entire-unit short-term rentals and regulating room rentals in New Yorkers’ primary residences. City politicians said banning Airbnb would help the housing crisis, as more than 10,000 apartments were being used as short-term rentals instead of permanent housing for residents
But Airbnb says vacancy rates in New York City have remained at around 3.4% since the law took effect. “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,” the company said in a blog post Tuesday.
Those rent raises, of course, can be attributed to a variety of factors and likely would have happened regardless of the short-term rental policy.
Airbnb also cited increasing hotel rates in New York City, up more than 5% of the national average last year, as a negative consequence of the law. That rise, however, is in part attributed to the fact that one in five NYC hotels is currently being used as a shelter for migrants.
“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,” Theo Yedinsky, vice president of public policy at Airbnb, said in the blog post. “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.”
Former City Council member Ben Kallos, who authored the law, recently told travel news site Skift that the policy was intended to target hosts with hundreds of units, not locals with one or two. “This morning 33,255 children woke up in a homeless shelter and it makes me angry to learn that bad actors would rather leave their homes vacant in hopes of commanding hotel prices for 30-day stays than just renting their homes at market rates to families and children in desperate need of housing,” he said.
Christian Klossner, the executive director of The Office of Special Enforcement, told Skift that Local Law 18 has “has been pivotal in protecting the city’s housing stock from illicit activity and keeping New Yorkers safe.”
“The implementation of the registration law led to a massive reduction in illegal short-term rental listings. It has also supported local short-term rental operators in understanding legal hosting practices. Lastly, LL18 has effectively prevented the misuse of thousands of permanent housing units for illegal short-term rentals.”