New York Metropolis council members have launched a brand new invoice (No. 1107) that will enable short-term leases for house owners 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 whole houses since September 2023. Presently, solely non-public room leases and long-term leases (30 days or extra) are permitted. Because of this, 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 Could 2024—a staggering 82% lower.
Lodge Lobbying to Come
Invoice No. 1107 goals to permit house owners of single-family and two-family houses to transform their properties into furnished vacationer lodging. The invoice additionally eliminates the requirement for house owners to be current throughout their company’ keep. Moreover, it will allow the lodging of as much as 4 adults (as an alternative of the present restrict of two) together with their kids.
Airbnb spokesperson commented, “The proposed adjustments to New York’s short-term rental regulation are a optimistic step to assist householders earn further earnings 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 lodge business is prone to oppose these adjustments, whereas Airbnb might intensify its lobbying efforts, particularly as different cities contemplate tightening their rules 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, want to impose restrictions.
The Common Worth in New York Resorts is $417
New York hoped Native Legislation 18 would assist alleviate the housing disaster. Nonetheless, in line with Airbnb, it hasn’t had the specified impact. “A yr in the past, the town tightened rules,” 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. We now have seen a 3.4% hire enhance over the primary 11 months for the reason that regulation was carried out. On the similar time, lodge room costs have surged by round 7.4% in only one yr. New York is changing into an advanced vacation spot that these with much less buying energy can now not afford. Is that this what prospects need?”
The New York Instances stories that lodge charges in New York Metropolis are skyrocketing as the vacation season approaches. In September, the common worth for a lodge room in New York reached $417, in line with CoStar. This represents the town’s highest month-to-month fee ever recorded since CoStar started monitoring this knowledge in 1987.
