By Jaclyn Jeffrey-Wilensky and Christopher Werth, published June 12, 2023
This summer was supposed to mark a major turning point for New York City’s market for Airbnb and other short-term rental sites. But now, hosts and lodgers can expect little change until the end of the peak tourist season.
A new law that requires hosts to register with the city will effectively eliminate thousands of vacation rentals for entire apartments on Airbnb, one of the largest rental platforms, but also on sites such as VRBO and Booking.com. Rentals for entire homes and apartments for less than 30 days are already illegal under New York state’s multiple dwelling law.
Proponents of the change argue that short-term rentals are worsening the city’s lack of affordable housing by reducing the number of apartments on the full-time rental market. But the agency charged with enforcing the new rule has twice-delayed its full implementation in recent months, and lawmakers are concerned that the agency’s current staff vacancy rate of over 50% is hindering its ability to enforce the law.
“They’re missing half the team, and they really need full capacity to get this done,” said Councilmember Carlina Rivera, who co-sponsored the law that passed last year. “There are over 10,000 illegal short-term rentals in operation in NYC in the midst of a perpetual housing crisis, which is unacceptable.”
Enforcement of the new rules, originally scheduled to begin on May 9, will now start on Sept. 5, after initially being postponed to July 1.
Entire homes and apartments available to rent for less than 30 days make up more than a quarter of the roughly 43,000 Airbnb listings in New York City, according to data provided by Inside Airbnb, which is not affiliated with the company. It advocates for tougher rules on short-term rentals and extracts data from Airbnb’s website on a quarterly basis. But only 7,000 of those properties are booked regularly.
Under the new law, New Yorkers who want to rent their homes on Airbnb and other platforms must apply for a registration with the city, provide detailed information about their property and clear any outstanding building violations, among other requirements. Hosts are only allowed to rent rooms in their own living space for rentals under 30 days, and they have to be home while their guests are visiting.
As of June 5, only 36 applications had been accepted out of a total of 781 received since registration opened in March, according to Christian Klossner, director of the Mayor’s Office of Special Enforcement, or OSE, the agency responsible for implementing the law. Only 13% of applications had been fully reviewed. Seven had been denied because they were for rent-regulated apartments, which are also barred from registering under the new rule
Klossner said he was unable to answer questions from Gothamist on the record about how understaffing might affect the city’s ability to implement the new law, which officially went into effect on May 9, despite the delays in enforcement.
Airbnb and three hosts filed lawsuits against the city earlier this month, arguing the new rules are overly burdensome and a violation of hosts’ privacy. They’ve asked a judge to invalidate the new requirements. OSE informed the court on Friday that it had delayed enforcement.