New York City is cutting back on Airbnb offerings. Will other cities follow?

Hannah Murdock
·2 min read
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Supporters of Airbnb hold a rally outside City Hall in New York, Jan. 20, 2015. A New York judge on Tuesday, Aug. 8, 2023 dismissed lawsuits filed by Airbnb and three hosts over New York City’s rules for short-term rentals, saying the restrictions are “entirely rational.”
Supporters of Airbnb hold a rally outside City Hall in New York, Jan. 20, 2015. A New York judge on Tuesday, Aug. 8, 2023 dismissed lawsuits filed by Airbnb and three hosts over New York City’s rules for short-term rentals, saying the restrictions are “entirely rational.” | Bebeto Matthews, Associated Press

New York City is cracking down on illegal short-term rentals in a move that will limit the amount of Airbnb-style offerings in the city.

The Short-Term Rental Registration Law, which passed in 2022 and established a litany of rules required to register as a short-term rental, will start being enforced on Sept. 5, The Associated Press reported.

Here’s a look at what Airbnb has called a “de facto ban against short-term rentals” and how other cities are following in New York City’s footsteps:

What are the new rules for Airbnb in New York City?

The local ordinance requires short-term rental hosts — anybody who rents out a room or home to guests for less than 30 days — to register with the Mayor’s Office of Special Enforcement.

Under the new regulations, “short-term rentals are only permitted if you are staying in the same unit or apartment as your guests, and you have no more than two paying guests at a time,” according to the office’s website.

The short-term rentals are also required to comply with all other city codes, per CNN Business.

Short-term rental hosts and booking services could be penalized up to $5,000 for each violation of the new rule, Forbes reported.

Why Airbnb sued New York City

The new regulations for short-term rentals were originally set to be enforced in July of this year, but a lawsuit brought against New York City by Airbnb on June 1 pushed the date back.

In the lawsuit, Airbnb called the new regulations “extreme and oppressive.”

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According to Airbnb, “It is a near impossibility for lay New Yorkers to certify compliance with and understanding of the maze of complex regulations in different legal codes governing short-term rentals.”

On Aug. 8, the lawsuit was dismissed by a New York judge, who called the regulations “entirely rational,” per AP.

What other cities are banning short-term rentals?

Many cities across the world are also looking to regulate short-term rentals, which locals argue favor tourists and exacerbate the housing crisis.

Barcelona, London, Paris, San Francisco, Seattle, Singapore, Tokyo and Vancouver are among the major cities that have passed laws regulating short-term rentals.

Most recently, Dallas, Texas, in June of this year voted to ban short-term rentals in single-family residential neighborhoods.