Photo Credit: Photo Credit: Luca Bravo
Airbnb Vs. New York City's Short-Term Rental Regulations
Airbnb filed a lawsuit against the city of New York earlier this month, on June 1. In the lawsuit, the company alleges that the city had effectively banned short-term rentals, limiting the number of individuals who can provide lodging through the platform, Reuters reported. The company asserts in its filing to the Supreme Court of New York that the city council implemented its most stringent and burdensome set of regulations in 2022. The latest regulations essentially act as a ‘de facto’ ban on short-term rentals in New York.
The lawsuit comes amid a recent increase in the introduction of short-term rental ordinances throughout the United States. Airbnb aims to challenge the stringent regulations and advocate for hosts who depend on short-term rentals for income. City ordinances vary in their requirements. Some require hosts to obtain licenses and pay registration fees while others outright prohibit short-term rentals in certain business districts.
City Ordinances Impact Short-Term Rental Supply
According to Airbnb’s filing, a 2021 law caused 29,000 hosts to exit the New York short-term rental market.
AirDNA, a data analytics firm, indicates that the number of short-term rental listings in New York City saw a 27% year-over-year increase in April 2023 but remains 32% lower than in April 2019. AirDNA’s chief economist states that the majority of listings in New York City are either private or shared rooms, commercial properties, or listings designed for long-term stays.
Airbnb’s filing claims the company’s annual net revenue in New York City is projected to reach $85 million in 2022. The Mayor’s office has acknowledged the lawsuit and has also pledged to investigate the matter.