Airbnb’s NYC comeback proposal
Airbnb aims to spend $5MM backing city and state candidates to help them reverse NYC’s strict, short-term rental rules. The new rules, which took effect in September 2023, required hosts to stay onsite during rental periods and capped the number of guests at two. Over 18,000 (80%) of Airbnb's city listings went offline within one year.
It’s a smart strategy because corporate lobbying works. Consider the results the crypto industry saw last cycle.
Regardless, Airbnb has a strong case for reversing the short-term rental rules. LL18 has not accomplished its intended purpose: to combat the housing crisis. Neighborhood rents within high and low Airbnb concentrations are up 5.8% and 6.3%, respectively, post-LL18.
At the same time, NYC hotels have made a killing; the average hotel room rate hit a record high of $417/night in September 2024. Airbnb also argues that if short-term rentals are sharply limited, resulting in 80,000 fewer monthly guests, the city could see ~$2.5Bn less in spending from Airbnb guests, impacting small businesses and local economies.
A compelling data-backed case drives Airbnb’s increased lobbying efforts.
