New York City has dropped off the top 10 list of home sharing destinations for the Fourth of July following a clampdown that has meanwhile sent hotel rates soaring citywide, according to a report.
The report by AirDNA, which tracks bookings on Airbnb and VRBO, showed the Big Apple plunged to No. 54 — down precipitously from its two-year perch at No. 10 in 2023 and 2022.
New York City lost the most bookings compared with any other market, according to the report. It was replaced in the top 10 by oceanside property in Delaware and Maryland, which is now ranks at No. 7.
The city’s dizzying drop in the rankings comes as local officials crack down on home sharing sites including AirBnb.
Under new, restrictive rules that went into effect last September hosts must register with the city and can’t rent out their apartments for less than 30 days unless they are at home while their guests are visiting.
“New York City’s strict regulations on short-term rentals have significantly reduced the number of legal listings,” AirDNA’s chief economist Jamie Lane told The Post in a statement.
At the same time, hotel rates in NYC have shot up. The average daily rate for a hotel stay in New York City increased to $301.61 in 2023, up 8.5% from $277.92 in 2022, according to CoStar data.
Hotel rates have continued to rise in 2024, and were up by 6.7% to $231 during the first several months of the year when most rates dip because of slower demand compared to the same period in 2023.
In New York, just 2,242 hosts are registered with the city agency enforcing the new regulations – known as Local Law 18 – which among other things limits reservations to two guests.
The law also imposes hefty fines for violations, including longstanding rules that hosts be home for the duration of the stay.
Short-term rental listings dropped by 82% from 22,246 last August to 4,000 in May, “potentially making the city less attractive to tourists,” Lane added.
The city has argued that Local Law 18 was necessary, because too many hosts didn’t follow existing rules and were a menace to their neighbors and contribute to the affordable housing crisis in the Big Apple.
“The short term rental registration program has been pivotal in protecting the city’s housing stock from illicit activity and keeping New Yorkers safe,” Christian Kossner, executive director of the Office of Special Enforcement told travel trade publication Skift.
“It has effectively prevented the misuse of thousands of permanent housing units for illegal short-term rentals,” Klossner added.
Other big cities that passed laws to regulate short term rentals are also losing out to coastal and rural regions for the Fourth of July, AirDNA reports.
Coastal locations are the most popular, with 1.63 million nights already booked, or a 7.7% increase over the same period last year while rural locations are seeing demand rise by 10.6% compared to a year ago, AirDNA reports.
