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New Law Kills NYC AirBNB Market
The Number of Short Term Rentals Has Plummeted More than 80%
Michael Campbell
22 Oct
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The Number of Short Term Rentals Has Plummeted More than 80%
In August there were about 22,400 short-term rentals available for rent throughout New York City; today, there are less than 3,300.
The precipitous decline is a direct result of NYC’s newest anti-AirBNB mandate. It bans homeowners and landlords from leasing out their residential property for a period of less than 30 days. The only way around the rule, is for the owner of the property to be present for the entire duration of the guests’ stay. In other words, all Air BNB hosts must now be ‘owner-occupants’; no more absentee hostings.
The new short-term rental guidelines have caused quite the stir; much of the feedback being negative.
Mayor Adams’ administration claims that the mandate was implemented in good-faith; aiming to increase apartment inventory throughout the city and improve guest experiences. However, the strict set of rules have contrarily presented a laundry list of problems. Atop that list are:
The fact that many travelers have no desire to live side-by-side with their Air BNB host. This would be like renting a hotel in which the lobby staff sleeps directly across the hall.
Closing the door on countless Air BNB hosts has inadvertently shined a bright light on the black market. Property owners are now taking their homes to unregulated platforms such as Facebook and Craigslist, and this presents an entirely new separate set of issues.
Lastly, tens of thousands of homeowners have been stripped of an additional source of supplemental income. Many of these homeowners depend on the rental income to help cover the exorbitantly high housing costs in the city.
As the dust settles, both NYC locals and concerned non-New Yorkers alike, anxiously await the possibility of a reversal to the new Air BNB rules. In the interim, Air BNB founder Brian Chesky has announced that he will be shifting the platform’s focus away from the once thriving new York City market, and instead setting its sights on the host of the 2024 Summer Olympic Games - Paris.
Quick Takeaways
NYC Implements A New Ban On Short Term Rentals
The Mandate Eliminated Over 80% of All Air BNB Listings in Less Than A Month
Anger Is Mounting Amongst Homeowners and Hosts Who Have Lost A Much Needed Additional Source of Supplemental Income
On Another Note
✺ The White House Opens the Door to ADU’s Nationwide: HUD announces that they will be expanding access to funding via a newly proposed policy which will provide a mortgage credit to those who are “seeking to purchase properties with ADUs, add ADUs to existing structures, or construct new homes with ADUs.” — Housing Wire
✺ Our North American Neighbors Are Looking Further Into UBI: Canada’s Senate aims to lay the foundation for a viable UBI (Universal Basic Income) initiative for all Canadians 17 years of age and older. — VICE
✺ Mortgage Demand Sinks to the Depths of New Record Lows: As mortgage rates continue to increase, demand moves farther and farther in the opposite direction. Mortgage applications have now slipped to their lowest level since 1995. — Housing Wire
✺ Rent Growth Has Been Slow & Steady: In September, the average U.S. rent climbed to $2,047; which is 3.2% higher than the year previous. — Zillow
✺ Parking Lots Turned House Plots: Parking lots across the West Coast have become a permanent stop for the homeless and those that are living in their vehicle. — NY Times
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