Photos Courtesy Airbnb
By MOHAMED FARGHALY
mfarghaly@queensledger.com
As New York City grapples with one of the strictest short-term rental laws in the United
States, a coalition of advocacy groups, including Tenants Not Tourists, is pushing back
against proposed amendments to the regulations. The coalition, which includes local
tenant groups and housing advocates, argues that Intro 1107 would undermine the city’s
efforts to combat the housing crisis by enabling homeowners to rent out their residences
while away. On the other side of the debate, Airbnb is advocating for the bill, arguing that
the current law unfairly restricts homeowners and does not effectively address the city’s
ongoing affordability issues.
In September 2023, New York City passed a law that requires hosts to remain in their
homes while renting them out, effectively prohibiting people from renting their properties
while away for extended periods. Airbnb contends that the law unfairly targets ordinary
New Yorkers who rely on short-term rentals to help cover the high costs of
homeownership.
Airbnb’s stance on the issue is based on its belief that homeowners should have the
right to occasionally rent out their properties when they are not in use. Many residents,
such as seniors heading to Florida for the winter or professionals traveling for work,
traditionally use Airbnb as a way to earn extra income while they are away. However,
under the new law, these homeowners have been prohibited from listing their homes
unless they are present.
Airbnb argues that its hosts are not large-scale investors looking to dominate the market,
but everyday people trying to make ends meet. The platform believes homeowners
should have the ability to rent out their primary residence when they are away, but only
on an occasional basis. This, they argue, is not about promoting full-time short-term
rentals in the city, but about giving people a way to earn income while they’re not living in
their homes.
One of the main justifications for the city’s crackdown on short-term rentals was the
belief that such rentals contribute to the housing crisis by removing units from the long-
term rental market. Critics argue that Airbnb exacerbates New York City’s already tight
housing market, pushing up rents and limiting availability for long-term renters. However,
Airbnb counters that these claims do not hold up to scrutiny.
According to the company, New York City’s rental market has continued to experience
rising rents and stable vacancy rates, despite the drastic reduction in short-term rentals.
In fact, Airbnb points to a 92% drop in the number of available short-term rentals since
the law’s passage, yet housing affordability has not improved.
On February 12, over 100 New York City homeowners, civil rights and housing
advocates, and small business leaders gathered at City Hall to call for changes to the
city’s restrictive short-term rental regulations. The rally, supported by various chambers
of commerce and community organizations, emphasized the financial hardship these
rules have caused, especially in outer boroughs. Speakers advocated for reforms to
benefit families and small businesses, including allowing hosts to welcome up to four
people, enabling homeowners to rent their properties when away, and improving safety
measures. They highlighted the economic damage caused by the regulations, which
have led to significant losses in visitor spending and jobs. Participants urged lawmakers
to adopt a balanced approach, promoting economic opportunity while safeguarding
housing for New Yorkers.
Airbnb also argues that much of the opposition to short-term rentals comes from the
hotel industry, which stands to benefit from reduced competition. Allegedly, hotel lobby
groups have spent significant resources promoting the idea that short-term rentals
worsen the housing crisis. Airbnb maintains that these campaigns are driven by the profit
motives of large hotel chains, not a genuine concern for affordable housing.
The company contends that the hotel industry’s influence has clouded the debate,
pushing for stricter regulations that ultimately hurt regular New Yorkers rather than
solving the underlying housing problems. Allegedly, the real beneficiaries of the law are
hotel owners, whose prices have risen significantly since the new law was implemented.
In 2024, hotel prices in New York City rose by 8%, a rate far above the national average.
Airbnb’s stance on the law also emphasizes the robust enforcement system that already
exists to prevent abuse of the platform. In New York, hosts are required to apply for a
special license through the Office of Special Enforcement to rent their homes short-term.
The city has a 66-person enforcement team that ensures compliance with the law, and
Airbnb says that anyone who is not in compliance is swiftly removed from the platform.
Airbnb also highlights the financial relief it provides to homeowners, particularly those
struggling with rising living costs. Many hosts use the income from short-term rentals to
help pay their mortgages, cover bills, or make home repairs. For these homeowners, the
ability to rent out their space on Airbnb is an important source of financial stability.
Miguel B, a homeowner in Richmond Hill, Queens, believes that short-term rentals
provide an important financial safety net for everyday New Yorkers. Having lived in his
home for over a decade, Miguel used Airbnb to help cover costs such as his mortgage
and travel expenses, particularly when he and his family would travel.
“Originally, this concept of Airbnb or sharing, you know, short term rental, was my wife’s
idea. It wasn’t something I was in favor of. But we leveraged our space, and we went to
visit her brother in California and so when we traveled, it literally it had us break even in
terms of our trip, like, it didn’t even have to come out of pocket,” he said.
Miguel argues that he, like many homeowners, is not contributing to the city’s housing
crisis. Instead, he sees short-term rentals as a means of financial stability that benefits
both homeowners and local businesses.
However, Miguel is critical of the city’s current short-term rental regulations, which he
feels disproportionately impact homeowners like him. Under the new laws, the
restrictions on guest numbers and the requirement that hosts remain in their homes
have made it difficult for homeowners to use their properties as they see fit. He believes
that the law, while well-intentioned, has gone too far and hurt his ability to generate
income.
Ultimately, Airbnb believes that New York’s housing issues cannot be solved by further
restricting short-term rentals. Instead, the company calls for more focus on building new
homes to address the city’s chronic housing shortage. Airbnb’s proposed solution is a
balanced approach that allows occasional short-term rentals while cracking down on
abusive practices, such as full-time investor-led rentals.
“Home sharing drives prosperity in our communities and powers the economic engine of
our small businesses by drawing visitors outside of traditional tourism districts and
allowing us to showcase the best of our boroughs to new faces. These proposed
common-sense changes will maintain necessary safeguards for the long-term housing
market, while providing the flexibility New Yorkers need in order to host families in their
primary home. As living in New York becomes harder for working-class families, home
sharing provides an opportunity for extra income that will ultimately allow us to preserve
the character of our neighborhoods by keeping long-time residents in their homes and
keeping local businesses running,” Joint statement from the Presidents of the Chambers
of Commerce representing each of the city’s five boroughs.
