New York Metropolis council members have launched a brand new invoice (No. 1107) that may permit short-term leases for homeowners of single-family and two-family houses.
This proposal poses a major problem to New York Metropolis’s Native Legislation 18, which has prohibited short-term leases of total houses since September 2023. At the moment, solely personal room leases and long-term leases (30 days or extra) are permitted. Consequently, the variety of Airbnb listings out there for stays of lower than 30 days within the metropolis has plummeted from 22,246 in August 2023 to only 4,000 in Might 2024—a staggering 82% lower.
Lodge Lobbying to Come
Invoice No. 1107 goals to permit homeowners of single-family and two-family houses to transform their properties into furnished vacationer lodging. The invoice additionally eliminates the requirement for homeowners to be current throughout their visitors’ keep. Moreover, it might allow the lodging of as much as 4 adults (as an alternative of the present restrict of two) together with their youngsters.
Airbnb spokesperson commented, “The proposed adjustments to New York’s short-term rental regulation are a constructive step to assist householders earn further revenue whereas they’re out of city and to make the town extra accessible to vacationers.”
Nonetheless, the discussions relating to Invoice 1107 are anticipated to be in depth, with potential amendments on the horizon. The resort business is prone to oppose these adjustments, whereas Airbnb might intensify its lobbying efforts, particularly as different cities take into account tightening their laws on short-term leases. The stakes are excessive, notably as a number of cities, together with Barcelona, are contemplating bans on short-term leases, and others, like Athens, Good, and Val d’Europe close to Paris, wish to impose restrictions.
The Common Worth in New York Inns is $417
New York hoped Native Legislation 18 would assist alleviate the housing disaster. Nonetheless, in response to Airbnb, it hasn’t had the specified impact. “A yr in the past, the town tightened laws,” mentioned Emmanuel Marill, Airbnb’s director for Europe, the Center East, and Africa. “But a yr later, there was no enchancment in the actual property market. Now we have seen a 3.4% hire enhance over the primary 11 months because the regulation was carried out. On the similar time, resort room costs have surged by round 7.4% in only one yr. New York is turning into an advanced vacation spot that these with much less buying energy can now not afford. Is that this what clients need?”
The New York Instances studies that resort charges in New York Metropolis are skyrocketing as the vacation season approaches. In September, the typical value for a resort room in New York reached $417, in response to CoStar. This represents the town’s highest month-to-month fee ever recorded since CoStar started monitoring this knowledge in 1987.
