New report finds NYC’s short-term rental law takes toll on outer boroughs
Billions Lost in Visitor Spending
Since New York City’s stringent short-term rental law, LL18, took effect, Airbnb listings have plummeted by 92% in the outer boroughs, resulting in an estimated $1.6 billion less in visitor spending. This decline will impact small businesses and local economies, with the majority of the effect felt outside Manhattan. With short-term rentals sharply limited, the city could potentially see $2.5 billion less in spending from Airbnb guests, affecting more than 21,000 jobs and $902 million in worker wages.
LL18 Fails to Boost Housing Availability or Affordability
The report reveals that LL18 has not increased housing availability or affordability as promised, with vacancy rates unchanged and rents continuing to rise. In fact, rents rose faster in areas that previously had a higher concentration of Airbnbs. This lack of impact on housing affordability is a stark contrast to the law’s initial promises.
A Win for Manhattan Hotels, a Loss for Consumers
The hotel industry, which lobbied for LL18, has seen a significant financial benefit in the law’s wake. Since LL18 took effect, hotel prices have surged, making it increasingly expensive to stay in New York City. Hotel Average Daily Rate has risen by 6% from May 2023 to May 2024, and occupancy rates are expected to continue growing.
About Airbnb
Airbnb was born in 2007 and has since grown to over 5 million hosts who have welcomed over 1.5 billion guest arrivals in almost every country across the globe. Airbnb.org is a nonprofit organization dedicated to facilitating temporary stays for people in times of crisis around the world.