Airbnb, the company that offers online rentals of homes and apartments, might soon return to New York City, offering travelers and short-term renters one and two-family options.
The Proposed Legislation
The proposed legislation on the New York City Council’s table would permit landlords to list their properties on Airbnb and similar marketplaces geared toward attracting tourists and renters. This initiative comes on the heels of the city eliminating thousands of illegal rental units.
Council member Farah Louis introduced the bill that specifically enables 30-day rentals at numerous small properties.
Those favoring the legislation believe the act will allow property owners to earn extra income for short spurts without taking on full-time tenants. That said, opponents of the proposal argue that said action weakens an already severe housing shortage. Moreover, the bill has fueled debate between the city’s hotel industry, short-term property listing services, and Airbnb.
If adopted, Louis suggests that the statute will help home and property owners defray rising costs.
Bucking Already Existing City Regulations
City mandates have prohibited short-term rentals for some time. However, the practice still occurred until September of 2023 following the adoption of Local Law 18, which blocked Airbnb and other short-term rental entities from accepting payment unless the owner was given documented permission by the city to list said property. The local law deep-sixed more than 10,000 Airbnb listings city-wide.
A Major Campaign
Airbnb’s dedication to achieving this goal is unquestioned. The company invested north of $1 million just this year on advertising campaigns and made appeals to every city council member.
The short-term rental platform is allied with an advocacy group known as RHOAR, which is short for Restore Homeowner Autonomy and Rights, a cadre of small homeowners who have expressed frustration over the existing law, which they believe hampers their capacity to earn money from their properties. Many RHOAR members live on fixed incomes.
“Short-term rentals provided a way for us to make ends meet and maintain using our homes in a flexible way,” said RHOAR member Margenett Moore-Roberts. “It’s been a vital source of supplemental income for people who have owned their homes for a long time.”
The Counter Argument
Tenant action groups shout, “Not so fast.” These individuals suggest that the measure will only cause a further reduction of available rentals to those desperately needing them, ultimately resulting in sky-high rent figures because landlords can lease to the highest bidders.
“It’s a disaster,” said Mike McKee, treasurer of the Tenants PAC Group. “There’s a ton of rental units that can be taken off the housing market and used for tourism at a time when New York City has had the tightest housing market in its history.”
Other Important Considerations
Of the more than 900,000 one and two-family homes across the city’s five boroughs, 319,00 contain renters.
Whitney Hu, director of civic engagement and research for the nonprofit agency Churches United for Fair Housing, said the proposal encourages inventors to purchase small properties and turn them into hotels.
“This bill particularly puts black and brown communities in New York City at greater risk of exploitation by the speculative market,” Hu said.
If enacted, the law would still require property owners to register their holdings with the city.
New York City’s Office of Special Enforcement, which governs short-term rental registration, said that the agency does not track the impact of Local Law 18 on the housing market. However, the office has levied fines against companies that have turned larger apartment buildings into de facto hotels by listing units on Airbnb and similar platforms.
“We are reviewing the proposal with an eye toward protecting units of housing, our communities, and travelers to the city,” said Camille Adolphe, spokesperson for the Office of Special Enforcement.
