Are New Yorkers Saying Goodbye to Airbnb?

Are New Yorkers Saying Goodbye to Airbnb?

News by Roberto OrosaRoberto Orosa
Published: September 07, 2023

Fans of Airbnb, get ready to say goodbye to the ease and comfort of low-cost rentals in New York City.

Local Law 18 passed last year began limiting the amount of Airbnb operations in the bustling metropolis, forcing them to register with the city and allowing only those who live in their units to rent out their place.

While online marketplaces for short-term rentals, such as Airbnb, can continue to operate within New York, the new limitations implemented on Tuesday are an undeniable hindrance to their operations, so much so that Airbnb has declared the recently passed law a "de facto ban."

With over 40,000 Airbnb's in New York and roughly $85 million made from short-term rental listings, Airbnb's business seemed promising. However, the recently passed law is sure to affect these numbers. 

Commenting on the policy, Airbnb Global Policy Director Theo Yedinsku referred to the new regulations as a "blow to its tourism economy and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home sharing and tourism dollars to help make ends meet."

"The city is sending a clear message to millions of potential visitors who will now have fewer accommodation options when they visit New York City: You are not welcome," he argued.

Airbnb Takes a Hit from City Regulations

Apart from New York, Airbnb has also taken a massive blow from city regulations and laws in other parts of the world. 

In Dallas, short-term rentals have been limited to a smaller amount of neighborhoods as a way of controlling disruptive parties. 

Other cities have also limited the number of days hosts can list their property for rent on Airbnb. In San Francisco, hosts may only rent out their residence up to 90 days a year, while Paris allows only up to 120 days. 

However, despite all efforts to curb low-cost, short-term rentals, Airbnb's business continues to thrive. 

According to Airbnb's Q2 earnings report, the company's net income surged 72% year-over-year to $650 million, surpassing analysts' expectations and setting the highest net income margin to date (26%).

Edited by Nikola Djuric

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