New York City implemented an Airbnb ban in 2023, strictly prohibiting short-term rentals of housing, with the original intention of freeing up more long-term rental supply and curbing continuously rising rents. However, two years have passed, and the latest data shows that this policy not only failed to improve the housing market but instead exacerbated skyrocketing rents and housing shortages.
According to the latest report, the median monthly rent for Manhattan apartments has exceeded $4,700, reaching a historic high; while the citywide rental vacancy rate has dropped to just 2.45%. This goes against the original intent of the policy, indicating that the impact of the Airbnb ban on the housing market has been limited.
After the ban was implemented, approximately 38,500 Airbnb short-term rental listings were forced offline, but the majority of them did not transition to the long-term rental market. Experts analyze that many property owners have chosen to keep their homes vacant, convert them for personal use, or sell them, thereby not increasing the supply of long-term rentals.
With a significant reduction in Airbnb listings, only the hotel industry has benefitted, and property prices continue to rise. Analysts point out that the ban deprived small landlords of a significant source of income, leading many middle-class individuals who rely on short-term rentals to supplement their mortgage payments into financial difficulty.
New York is not alone in facing these challenges. After Amsterdam, the capital of the Netherlands, implemented restrictions on short-term rentals in 2019, although short-term rentals significantly decreased, long-term rents soared by 34% over five years, far exceeding the national average. Similar situations have been observed in Barcelona, Spain, where short-term rental listings decreased by 24%, leading to a 37% surge in long-term rents. In Byron Bay, Australia, the government set a short-term rental cap at 60 days, resulting in the local long-term rental vacancy rate plummeting from 3% to below 1%, making finding rental accommodations even more challenging.
A recent study from the University of South Australia indicates that a blanket ban on short-term rentals is not the solution to the housing crisis. The real issue lies in inadequate urban development and excessive housing demand, which can only be mitigated through increasing the construction of affordable housing, and reforming land and tax policies. This is essential for truly alleviating the crisis.