Staying in New York has long been affordable for travelers, and that reality persists. Yet the search for lodging or non-hotel options has grown more intricate. New rules have shifted how short-term stays are organized on platforms like Airbnb, Vrbo, and Booking.com. With millions of visitors anticipated this year and one of the world’s tightest real estate markets, the city faces a unique balancing act between tourism and housing demand.
In September, Local Law 18 took effect. This regulation, approved in 2022, broadens existing city and state rules that had not yet been fully put into practice. The law bans renting a house or apartment for fewer than 30 days unless strict conditions are met: guests must be present throughout the stay, no more than two guests, and the renter must retain access to the entire property. Older rental stock may not comply with these requirements, creating additional shifts in the market.
The core aim of the law is to establish and enforce new registration obligations. Fines apply to both property owners who rent under the new rules and platforms that accept listings from unregistered hosts. The process for obtaining an official registration number from the mayor’s Special Compliance Office is detailed and often slow. By October 9, nearly 4,800 registration applications had been filed, about 1,700 reviewed, around 60% returned for data checks or corrections, and only 481 approved.
Although a transition period was set to end December 1, the impact was felt immediately. Data from Inside Airbnb show that roughly 85% of listings vanished from Airbnb between August and October. The city went from 22,437 available options in the summer to about 3,227 listings in the current month.
Let’s go back underground
Officials projected that as many as 11,000 Airbnb listings could be illegal under the new framework. But disappearing listings do not mean the housing supply evaporates. Instead, listings of questionable legality are moving to other venues, relaxing the connection between supply and demand.
Advertisers who push legality limits have migrated to spaces like Facebook Marketplace and Houfy, a site akin to Airbnb. The broader aim remains to scrutinize how supply and demand meet and to reduce the market’s informal segments.
Existing and new WhatsApp groups are filled with requests to rent through personal networks, a long-standing option when seeking a place to stay in New York.
Craigslist has seen a resurgence as a simple, low-friction listing space where properties in sought-after areas can appear. This week one example shows a Midtown apartment advertised at $150 per night, plus $75 for cleaning. The posting offers a 15% discount for stays longer than 30 days but notes a preference for short-term stays rather than long-term commitments.
Supporters and opponents
Proponents of Local Law 18 argue that it helps curb a market that has driven up rents and contributed to gentrification and deteriorating living conditions. Critics describe the measure as a housing crisis tool that reduces available, affordable housing.
Advocates contend that the law counters Airbnb’s image as a friendly option and counters the growth of professional hosts who own multiple properties and operate as mini-hotels. They point to studies showing a growing concentration of platform offerings among a small number of large hosts.
Airbnb itself opposes the law, arguing that it reduces options for visitors. The company noted in 2022 that it earned a significant portion of its revenue in the city and framed the rules as a barrier to visitors. The platform has suggested that the city’s approach could signal a tighter policy stance globally and a shift in where guests search for accommodations.
Landlords and daily renters have raised objections, arguing that the city is bending to hotel lobbying pressure. The current average room price in New York stands around $502 for this month, roughly 8% higher than last year.
A coalition of homeowners and renters has formed, with some asking for exemptions. A spokesman for the mayor indicated that a potential exception might be considered, while the broader political process moves forward. The coalition notes that a portion of its members earns less than $75,000 annually and many belong to racial minority groups, though some own high-value properties and have faced fines in the past. The situation underscores the tension between housing affordability and the economic interests connected to short-term rental platforms.