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fter the implementation and enforcement of Local Law 18, Airbnb is seeking a second chance from New York City. The short-term rental company has called on the city to scale back its controversial short-term rental law, as reported by Bloomberg. In a blog post, Brian Chesky's company stated that the law failed to address the city's housing crisis.
Airbnb's frustration with the city intensified after Labor Day last year when Local Law 18 came into effect, requiring short-term rental hosts to register with the city. This policy was on top of a ban on rentals of fewer than 30 days unless the host was present.
The impact was immediate. Legal short-term rentals disappeared from the city overnight, benefiting the hotel sector that could reclaim tourism dollars that had drifted elsewhere in recent years.
Supporters of Local Law 18 hailed it as a measure to alleviate the city's housing crisis, but this hasn't been realized. A study conducted by Airbnb months after the enforcement of illegal short-term rentals found that rents still rose, and vacant units didn't open up as a result of the policy, though the sample size was limited.
As of last month, short-term Airbnb listings in New York City have decreased by 83 percent year-over-year to 3,700 listings, according to AirDNA. With the company making $85 million in revenue in New York City alone in 2022, Airbnb is likely losing millions.
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The company still has a muted presence in the market as prospective hosts can apply with the city. There was a backlog of applications at the start of the enforcement period, but this has been mostly cleared at this point. Out of nearly 6,700 applications made to the Mayor’s Office of Special Enforcement in the past year, about 38 percent were approved, 38 percent were denied, and the rest were sent back to applicants for revision.
