Airbnb Claims NYC Crackdown Hasn't Delivered
18.01.2024 - 20:20
/ skift.com
/ Dennis Schaal
/ Jay Carney
More than four months since New York City cracked down and limited short-term rentals, Airbnb claims the city hasn’t delivered on the benefits it promised to Big Apple residents.
“Many have argued that removing the ability to host short-term renters will open up tens of thousands of available rental units in the city, yet, more than four months after New York City’s short-term rental rules went into effect, there has been no detectable increase in available rental inventory and rents have only risen further,” said Taylor Marr, senior housing economist at Airbnb, in a statement. “Policymakers should continue to focus on reforms that encourage new housing construction throughout the region to address the root cause of the affordability challenges.”
The Local Law 18 host registration law, implemented September 5, required hosts to be present during a guest stay of less than 30 days, effectively banning a big chunk of the city’s short-term rental market. Goals of the law included improving the quality of life in neighborhoods around the city, as well as increasing the housing supply and lowering rents.
Jay Carney, Airbnb’s global head of Policy and communications, said yesterday at a mayoral conference in Washington, D.C. that Local Law 18 “is “probably the most onerous regulation in the country if not the world.”
Airbnb provided Skift with several data points to back its arguments:
Average daily rates for hotels in New York City jumped 10.85% to $393 in December, according to Costar, but not all of that can be directly tied to the NYC crackdown on short-term rentals.
One major NYC hotel operator, who declined to be identified, said its revenue per available room in December jumped 12%, and that was driven by an 8% increase in average daily rates.
“It’s a murky narrative, one can’t say it’s all because of Airbnb,” the hotelier said, adding that stable interest rates in December, the recovery of international tourism, and restricted hotel supply because of of the influx of migrants have all contributed to the jump in daily rates.
Many major cities, with the exception of San Francisco, have produced significant revenue per available room gains since 2019, lending credence to the argument that NYC’s hammer on Airbnb rentals is not the sole factor behind hotel rate increases, the hotelier said.
Margenett Moore, a member of the RHOAR (Restore Homeowner Autonomy & Rights) leadership team, said the NYC host registration law has created a new housing crisis for owners of one- and two-family homes in the city.
The law states that they can only host short-term rentals for stays of 30 days or longer, a stipulation that cuts many homeowners off from income that they needed to pay their mortgages.
In many cases,