6 Months After New York Banned Airbnb, New Jersey Is Doing Great | EUROtoday

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More than 95 p.c of the group’s members say they don’t have any intention of turning into long-term landlords, says Lindsay. Instead, he argues, they’re now confronted with rising housing prices and no instant option to offset them. The legislation “has yielded some unintentional effects that are harming smaller homeowners,” Lindsay says.

Amid the uncertainties, there could also be some winners from the legislation: resorts within the metropolis and the state of New Jersey. Hotel occupancy charges in New York have been barely up year-over 12 months, by 4 p.c in January and three.4 p.c by way of February 24, in keeping with CoStar, which tracks industrial actual property. The common every day room price in January was up from $198 an evening to $209, and from $200 to about $207 by way of February 24.

Across the Hudson River, demand for short-term leases has risen sharply in Jersey City, Hoboken, and Weehawken because the legislation handed, all cities that supply fast entry into downtown Manhattan. Jersey City has seen demand rise 77 p.c year-over-year as of mid-February, in keeping with AirDNA, whereas in Weehawken and Hoboken demand has elevated 45 and 32 p.c, respectively.

The excessive rents in New York up to now appear unaffected. Despite hopes from lawmakers that the ban may deliver them down, short-term leases are only one piece of a fancy unaffordable housing downside. More than half of New York households are rent-burdened, which means they spend greater than 30 p.c of their earnings on housing, a 2023 report from nonprofit Community Service Society discovered.

The median hire of properties within the metropolis on Zillow was up $165 in March from the identical month final 12 months, coming to $3,465. But a January 2024 report from actual property firm Douglass Elliman discovered that hire costs fell in Manhattan and Brooklyn, areas fashionable with vacationers, after rents stabilized and the variety of vacant flats elevated in December. If limiting short-term leases helps residents, it might take longer than six months to manifest. A current research checked out Irvine, California, which bans short-term leases in all residential zones, and located that after two years of the ban, rents dropped by about 3 p.c.

Enforcement of the legislation has been patchy. With Airbnb off limits, individuals turned to Craigslist, Facebook Marketplace, or different home-sharing websites like Houfy to record their flats after they had been booted from websites like Airbnb or Vrbo. The metropolis has not but issued any fines to individuals for renting out their flats illegally, as it’s nonetheless engaged on compliance, in keeping with Christian Klossner, government director of the Mayor’s Office of Special Enforcement, which oversees the licensing course of. But he says town is responding to complaints associated to unlawful renting. As of February 26, town had obtained 5,783 purposes to run short-term leases. It has authorised 1,594, denied 990, and despatched again greater than 3,000 for extra data or corrections.

Airbnb opposed the legislation, and sued town earlier than it took impact, however the case was dismissed final August. Now that the legislation is in impact, the corporate is sustaining its opposition. “In the six months since New York City’s short-term rental rules went into effect, we’ve seen travelers facing record hotel prices and former hosts struggling with loss of income—but we have seen no improvement in housing costs,” Nathan Rotman, Airbnb’s Northeast policy lead, tells WIRED. “We hope city leaders listen to hosts who are advocating for changes to the existing rules.”

Lindsay, of the householders affiliation, says individuals like him are hurting whereas their counterparts in New Jersey profit. Renting out an condominium on Airbnb “was a lifeline for me, especially during the pandemic,” he says. The affiliation is engaged on methods the New York City Council may amend the legislation to permit these smaller hosts to function short-term leases. Right now, he says, it fails by grouping small householders in with big-time traders. “It treats all property owners as if they’re these evil, maniacal villains.”