NYC cracked down on Airbnbs 2 years ago - yet rent remains sky high for locals. Why experts say the ban hasn't had the impact lawmakers intended

"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."

"The Wall Street Journal found that not only were the number of short-term rentals a tiny fraction of the total number of housing units in the city, many of the units prohibited from being rented short term did not reappear as standard yearlong rentals [3]. Instead, some owners pivoted to stays of 30 days or more or kept units for personal use. Years of underbuilding and strong demand fueled asking rents reaching a record $3,800 in August 2025 [4], with Manhattan's median hitting $4,571 in May [5]."

Local Law 18, effective September 2023, requires hosts to register with the Office of Special Enforcement and bars platforms from processing bookings without valid registration. Officials estimated roughly 60,000 illegal listings in 2018, with over 38,000 on Airbnb at the start of 2023; enforcement reduced active short-term registrations to about 3,000. Many units removed from short-term markets did not reenter yearlong housing; owners shifted to 30-day-plus stays or kept units for personal use. Years of underbuilding and strong demand drove asking rents to record highs, with citywide and Manhattan medians reaching record levels. Renters received little relief and tourists faced higher costs.

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