Home Swapping Is Thriving in New York City While Short-Term Rentals Fade

05.09.2024 - 22:37 / skift.com / Dennis Schaal

Home-swapping has thrived in New York City since Local Law 18 went into effect one year ago and placed tight restrictions on short-term rentals.

HomeExchange, a leader in this space, has seen a 53.6% jump in the amount of exchanges finalized in New York City since the registration law went into effect, CEO Emmanuel Arnaud told Skift.

“HomeExchange members are not required to register under Local Law 18,” Arnaud said. “Since home exchanging does not displace local residents and is not about profiteering, we have so far been successful in differentiating ourselves from this type of regulation in New York City and beyond.”

Arnaud said 92% of its properties are primary residences “so HomeExchange is limiting the number of apartments sitting empty.” Many of the properties put up for short-term rental are not owner-occupied.

New York City cracked down on short-term rentals and started a host registration requirement on September 5, 2023. Since that time, HomeExchange has seen its membership in the city jump 32% versus just 6% in the U.S. overall.

“Although we can’t say for certain the total number of new members in New York City that turned to HomeExchange as a solution to Local Law 18, the significant growth in New York City compared to the U.S. in general does suggest that a growth driving factor (such as Local Law 18) may have been at play,” Arnaud said.

The classic way people swap homes on HomeExchange is a reciprocal exchange, with families agreeing to stay in each others’ home on the same or different dates. No money changes hands when guests are swapping similarly valued properties, but sometimes they pay guest points if there is a difference. The HomeExchange membership fee is $220 per year.

Susan, who lives in Laguna Beach, California and works in the financial services industry, used HomeExchange to stay in an Upper West Side apartment in New York City in June for six nights with three other people. (She didn’t want to use her last name.)

The woman who offered Susan her NYC apartment is a doctor, and they used FaceTime and checked each other out before agreeing to the swap. It was not a reciprocal exchange: Susan and her group stayed in the doctor’s apartment, and Susan gave the doctor HomeExchange guest points for the stay, which she can use to stay elsewhere. Another person used guest points to stay in Susan’s home.

Susan has done more than 70 home exchanges, including several in the Big Apple because she loves going to Broadway shows. Before using HomeExchange, Susan would typically pay $100 per night for someone to house sit, and then she’d rent an Airbnb.

As with short-term rentals, neighbors can sometimes get upset when they see strangers entering or leaving an area property.

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