Airbnb Inc (NASDAQ:ABNB, ETR:6Z1) has urged New York City lawmakers to reconsider regulations on short-term rentals introduced in September 2023 which it says have increased costs for travellers without improving housing supply.
In a blog post, the alternative accommodation provider said Local Law 18 (LL18), which requires short-term rental hosts to register with the Mayor’s Office of Special Enforcement, has failed to deliver on its promise to protect affordable housing.
It pointed to a range of data points, including that rent climbed 3.4% during the first 11 months of the law and vacancy levels are virtually unchanged, also at 3.4%, since the law took effect.
Travellers also face increased hotel costs, with the average price of hotels in New York rising 7.4% in 12 months, compared to a 2.1% increase nationally, according to data from CoStar.
Further, Airbnb highlighted that due to New York’s hotels being largely located in midtown Manhattan, it has limited accommodation options in the outer boroughs.
Theo Yedinsky, Airbnb’s VP of Public Policy, said New York City’s short-term rental regulations have backfired, disproportionately impacting outer borough communities.
“It’s time for New York City to re-evaluate LL18 and consider amendments that would at a minimum, allow homeowners to once again host guests,” Yedinsky said in the blog post.
“By rolling back parts of the law, the city can increase the supply of accommodations for consumers, support resident hosts, and revitalize local businesses that depend on tourism dollars. A more sustainable, sensible and equitable model benefits residents, visitors, and the broader community – ensuring that regulations support, rather than stifle, community and economic growth.”