New NYC building rules trigger thousands of Airbnb rentals ban
Photo by Clay LeConey on Unsplash
In the city that never sleeps, tourists and locals might soon have fewer options for short-term stays as The Big Apple’s building rules are about to change, affecting the NYC Airbnb scene.
Beginning Sept. 5, New York City is rolling out new rules that could threaten short-term rentals. These include a ban on renting out an entire unit, a requirement for hosts to stay in the unit with their guests, and a strict cap of just two people per reservation. These rules especially lock in on Airbnb, Vrbo, and other short-rental places.
Failure to follow the rules would result in the owner paying a $5,000 fine per stay. Once implemented, hosts on the aforementioned platforms will need to process the necessary paperwork, such as registering in the Mayor’s Office of Special Enforcement. Registered transient homes are exempted though.
These new regulations aren’t just shaking up the NYC Airbnb scene, but they are completely transforming it. Thousands of short-term stays are left hanging in the air as they can be completely withdrawn.
And as expected, there has been an ongoing battle regarding these rules, particularly with home rental giant Airbnb.
$ABNB joins the S&P 500 today.
However, NYC's strict new regulations might cast a shadow, removing thousands of listings from the platform and potentially impacting ~1% of Airbnb's revenue.
A glance at their latest quarter. pic.twitter.com/ePmWLbfmJA
— App Economy Insights (@EconomyApp) September 5, 2023
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The number of NYC’s short-term rentals
Data site Inside Airbnb shows that there are around 40,000 Airbnb listings alone but Boston University professor Michael Salinger suggests it’s close to 36,000.
New York will begin enforcing a new law regulating @Airbnb rentals in NYC that some say could amount to an effective ban on short-term rentals. @robtfrank has the details: pic.twitter.com/WOpNZ1AiHY
— Squawk Box (@SquawkCNBC) September 5, 2023
According to the Wall Street Journal, NYC believes there could be 10,800 illegal listings on all platforms. Registering a place seems to be a daunting task since the city only approved 257 licenses as of Aug. 28, as per travel site Skift.
If you’re curious what’s at stake, analytics site AirDNA is looking at 4,000 listings that might be included on the chopping block. Though it might not sound much, it’s 40 percent of the overall revenue in the five districts.
Airbnb hasn’t commented on the issue yet.
But the bottom line is, the Big Apple is about to get a tad more regulated. Will this be the end of an era for NYC Airbnb and the short-term rental scene? Only time will tell.
