New York City has enacted Local Law 18, which imposes strict regulations on short-term rentals, particularly affecting platforms like Airbnb and Vrbo. Under the new law, all short-term rental hosts must register with the city, and only those who live in the property being rented can qualify, with a limit of two guests. The law effectively bans many short-term rentals in the city, impacting hosts and guests alike.
While the regulations aim to address concerns related to noise, trash, and housing shortages caused by short-term rentals, critics argue that the law unfairly lumps small-time hosts with professional landlords. Some host advocates are calling for amendments to allow owner-occupied one- and two-family homes to register their units without capacity limits.
Airbnb and other platforms are adapting to the new law, canceling and refunding reservations in unregistered accommodations from December 2 onwards, with bookings up to December 1 remaining unaffected. The city is also working with booking platforms to ensure compliance with the registration system.
This move by New York City reflects a trend in various cities worldwide to regulate and restrict short-term rentals to address concerns related to housing availability and neighborhood disruptions. Airbnb continues to grow despite these regulatory challenges, reporting substantial revenue in the second quarter of 2023.