Airbnb Inc. (ABNB.O) sued New York City on Thursday over a “de facto ban” on short-term rentals that will take effect in July, limiting the number of hosts in the city.
US cities are passing short-term rental ordinances. Some ban short-term rentals in business districts or require hosts to get licenses and pay fees.
In 2022, the city council established “its most extreme and oppressive regulatory scheme yet, which operates as a de facto ban against short-term rentals in New York,” according to the company’s New York State Supreme Court statement.
Airbnb wrote to hosts, “Today’s filing comes only after exhausting all available paths for a sensible solution with the City.”
According to the filing, the law will make it harder for hosts to do business by requiring them to register with the New York City Mayor’s Office of Special Enforcement (OSE) and certify that they will comply with “the maze of complex regulations” for zoning, multiple dwelling law, housing maintenance code, and construction code.
The short-term rental corporation wants “Local Law 18” blocked by the court. “Only a miniscule number of hosts will ever be granted a registration,” Airbnb argued in the filing.
A New York City official stated Mayor Eric Adams’ administration “is committed to protecting safety and community livability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive.” The Mayor’s office will consider the lawsuit.
Airbnb reported that over 5,500 short-term rentals in New York City hosted over 10,000 guests in the first week of July. The complaint stated that a 2021 law caused 29,000 New York hosts to exit the short-term rental market.
According to AirDNA, New York City’s April 2023 short-term rental listings grew 27% year-over-year but were 32% below 2019 levels.
“The vast majority of New York listings are either private or shared rooms, commercial properties, or listings that only support long-term stays,” stated AirDNA Chief Economist Jamie Lane.
According to the filing, Airbnb earned $85 million in New York City in 2022.
