Airbnb rental listings in the five boroughs dropped 80% following a crackdown by New York City, but the effort has only driven hotel prices up while having little impact on improving housing affordability, according to a new report.
In September, the city began enforcing strict rules on short-term rentals like Airbnb, Vrbo and Bookings.com, with the goal of prioritizing long-term housing and helping the hospitality industry.
As of June 24, there were just 2,276 legal short-term rentals, Business Insider reported this week, down from 22,246 before the enforcement began. And hotel prices and rents in the city have only increased.
“The rules haven’t improved housing affordability in the city — rents continue to rise and housing stock has reached historic lows,” Nathan Rotman, Airbnb’s Northeast policy lead, told Business Insider.
Average daily hotel rates are over $300 in the Big Apple, according to a report from state Comptroller Thomas DiNapoli.
Since the city began requiring short-term rentals be registered, it received 6,395 total host registration applications, approved only 2,276, denied 1,746 and asked 2,269 applicants to submit additional information, according to the Office of Special Enforcement.
There are likely many more listings, because registered hosts can have multiple listings, the travel site Skift noted.
“New York City has only approved a couple of thousand host registrations, and all for reservations where the host is present during the stay,” the outlet reported. “That’s great news for neighborhoods sick of house parties and illegal hotels, and dour news for tourists and short-term rental platforms.”
In addition to the new registration requirement, hosts must be present during the stay, and a maximum of two guests are allowed.
The rules also ban separate apartments or living quarters for short-term stays in both apartment buildings and private homes, and threaten stiff penalties of up to $5,000 per violation.
Critics also say the near-ban hurts homeowners who relied on the extra income and visitors who can’t afford sky-high hotel rates.
Hotel costs skyrocketed 20% during the last holiday season, The Post reported, and are up 10% overall, according to experts. The increased room rates were also attributed to asylum seekers, experts noted in December, as they were occupying more than 10,000 low-cost rooms.
An Airbnb survey from late last year found that the law was driving tourists away from the Big Apple, with 65% of respondents saying they are less likely to visit due to pricier hotel stays and 30% saying they would stay with friends and family if they do come.
Fifty-four percent said they are more likely to book short-term stayed on regulated platforms now.
Pro-housing supporters of the city’s regulations argue officials should prioritize homes over hotels.
They say short-term rentals can take homes that would otherwise be lived in full time off the market, potentially exacerbating the housing shortage, according to BI.
“Illegal short-term rental operators hurt our hospitality industry and make it harder for New Yorkers to find affordable housing, and we must ensure we are holding them accountable,” Mayor Adams said in March.
