New York City Airbnb Crackdown Creates Black Market for Short-Term Rentals
Since the implementation of a new law banning most short-term rentals in New York City, only 2% of the previous 22,000 listings on Airbnb have been registered with the city. Although the number of short-term listings on Airbnb has dropped by 80%, many illegal rentals are now being advertised on social media platforms and lesser-known websites. This crackdown has led to a rise in a ‘black market’ for short-term rentals in the city as people are going underground.
With the decline in Airbnb listings, people are turning to alternative platforms like Craigslist, Facebook, and Houfy, which offer less regulation and fewer restrictions. As a result, hotel prices are expected to increase due to the surge in demand.
AirDNA, a short-term rental intelligence firm, has found that only 2,300 short-term rentals are now available on Airbnb in New York City, with 94% of listings advertised as long-term rentals. This shift is due to the strict requirements for short-term rentals, such as host presence and a limit of two guests. However, many hosts are finding ways to bypass these rules, either by claiming exemption or not providing registration information.
Furthermore, smaller landlords are advocating for changes to the rules to allow them to legally rent out their units. Restore Homeowner Autonomy and Rights (RHOAR), a local group opposing the law, has been meeting with city councilors to push for these changes. Meanwhile, off-platform rentals on websites like Craigslist and Facebook pose risks to both guests and hosts.
Airbnb, in response to the crackdown in New York City, is exploring other markets such as longer rentals, car rentals, and dining pop-ups. The company sees potential in Paris, its largest market and the host city of the 2024 Summer Olympics.
