More than 75% of short-term rentals listed on Airbnb have disappeared from the Big Apple following a tough municipal crackdown on home-sharing sites.
The disappearance of accommodations has left thousands of visitors planning to spend their holidays in Manhattan, particularly at the end of this year, in limbo; but on the other hand, it is providing a benefit to the city’s hotel industry.
The controversial short-term rental regulation – which took effect on September 5 – requires hosts to be present for stays of less than 30 days, with a maximum of two people staying in a dwelling at a time. Hosts must also register their properties and obtain city approval before listing their homes on home-sharing sites or apps. Otherwise, both hosts and booking sites could face fines of up to $5,000.
The travel site Skift estimates that short-term Airbnb listings in New York City fell by 77% between June 4 and September 10.
Existing short-term rental bookings made before September 5 will be honored until December 1.
Hotel Industry Benefits
The powerful hotel industry in the city, which has long struggled against the rise of Airbnb and competitors, is benefiting from the new rule.
Hotels were expecting a 10% increase in revenue per available room in New York City next year, but with the new regulation, this increase could be as much as 16%, according to Skift.
Google searches for urban hotels increased by 24% last week, according to JLL Hotels & Hospitality’s Americas.
The city justified the new regulation by stating that many hosts were not following the law. The new rules are also expected to help alleviate the housing crisis caused by a lack of long-term rental stock, which has driven rental prices to record levels.
Model for Other Cities
From London to Paris and Dubai, cities around the world have regulated short-term rental markets.
But New York’s regulations go further than most, raising concerns that other cities may adopt similar measures.
Tighter short-term housing rules are being discussed in various parts of the United States and the world, for example, in cities like Atlanta, Dallas, and New Orleans, as well as in Florence, Italy, and Melbourne, Australia.
Source: The New York Post and CNBC