NYC cracked down on Airbnbs 2 years ago - why experts say the ban hasn't had the impact lawmakers intended

"Yet, two years into strict enforcement and the crackdown on thousands of illegal listings, rents remain near record levels. What's more, the vacancy rate in Manhattan recently hit a record low of 1.4% [1]. For many residents the lesson is simple: A crackdown on Airbnbs may have shut down unlicensed hotels in trendy neighborhoods, but it's not a substitute for building more homes."

"The rationale behind the crackdown was twofold: First, it was meant to tame the influx of tourists who were impacting the quality of life of local residents who were left feeling crowded out of their own neighborhoods. The second objective was to boost housing inventory for locals, with the belief that the ban on short-term rentals would increase the housing stock as units that had been repurposed for tourism would revert back to long-term housing."

"Local Law 18, which went into effect in September 2023, requires hosts to register with the Office of Special Enforcement and bars platforms from processing bookings without a valid registration. Before the passage and enforcement of the law, officials estimated there were 60,000 illegal listings in 2018. Of these, more than 38,000 listings were "on one site" (i.e. Airbnb) at the start of 2023. According to New York City Mayor Eric Adams's office [2], illegal short-term activity has been "eradicated" to a large degree due to the law. Today, roughly 3,000 active short-term rental registrations remain."

Rents in New York City remain near record highs and Manhattan's vacancy rate recently hit a record low of 1.4% despite strict enforcement of short-term rental rules. Local Law 18, effective September 2023, requires hosts to register and blocks platforms from processing bookings without registration. Officials estimated about 60,000 illegal listings in 2018, with over 38,000 on one site at the start of 2023; roughly 3,000 active short-term rental registrations remain today. The crackdown reduced visible illegal short-term activity but failed to return substantial housing stock to the long-term rental market. Building more homes remains the primary solution to ease rents.

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