Huge Changes To Airbnb Rules In New York, Should State Follow

New York City made some major changes to how Airbnbs can operate. These new rules will greatly change the short-term rental landscape in New York State's biggest city. Should the rest of the state follow?

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Why Is NYC Focused On Limiting Airbnbs?

As New York City tries to ease its affordable housing crisis, Airbnb is in its crosshairs. According to Pew,

Housing construction in New York City and its suburbs has lagged far behind that of other major cities and their suburbs, resulting in low housing availability and a vacancy rate of just 3%. New York City’s housing stock has only increased 4% since 2010, not nearly enough to keep up with its 22% increase in jobs.

As people buy up available housing to use for short-term rental income options, like Airbnb, it decreases available long-term housing. It's basic supply and demand. With less housing available, the prices of what is available go up. For the working and middle class, this creates a housing crisis in New York State's most populous city.

A person runs through Manhattan’s SoHo neighborhood, which is home to numerous upscale stores, boutiques, art galleries, and multimillion dollar lofts on October 08, 2020 in New York City. In an effort to create more affordable housing, New York City Mayor Bill de Blasio has announced a rezoning proposal that would bring 3,200 apartments to the area, 800 of which would be below-market rate. (Photo by Spencer Platt/Getty Images)

Airbnb Hosts In New York City Affected By Massive Changes

Many Airbnb hosts in NYC are not happy with the new rules, which completely change how they can operate their short-term rentals. The new rules took effect this week on September 5, 2023. While Airbnb had filed a lawsuit to stop the changes, it was not successful. The technology company released a statement,

In June, Airbnb and local Hosts filed separate lawsuits against the City of New York to help protect hosting for New Yorkers. After working hard to find a better path forward for home sharing, we’re disappointed to inform you that both lawsuits were dismissed and New York City is moving forward with a de facto ban on short-term rentals.

Photo by Filios Sazeides on Unsplash

What Changes Did New York City Make To Airbnbs?

A short-term rental is for fewer than 30 consecutive days.

You cannot rent out an entire apartment or home to visitors for less than 30 days, even if you own or live in the building. This applies to all permanent residential buildings.

- All Airbnb hosts must register with NYC
- Hosts must provide proof that they live in the unit
- Host must also stay in apartment/home with guests
- A whole house cannot be rented for short-term use
- No family rentals are permitted (only two guests may stay)
- No attics, garages, or cellars may be converted to sleeping areas

You can find more FAQs and rules for New York City Airbnb hosts here.