New York City was reportedly dropped off the top 10 list of home-sharing destinations this Independence Day after a crackdown caused hotel prices across the city to skyrocket.
of AirDNA reportNew York plummeted to 54th place, down from 10th place for the two-year period 2023 and 2022, according to the research firm, which tracks Airbnb and VRBO bookings.
New York City saw the biggest decline in bookings of any market, according to the report, and has now fallen to No. 7 in the top 10, displacing waterfront properties in Delaware and Maryland.
The city’s sudden drop in the rankings comes as local authorities crack down on vacation rental sites, including AirBnb.
Under restrictive new rules that took effect last September, hosts must register with the city and cannot rent out apartments for less than 30 days unless guests are present at the home during their stay.
“New York City’s strict regulations on short-term rentals have led to a significant decline in the number of legitimate listings,” Jamie Lane, chief economist at AirDNA, told The Post in a statement.
At the same time, hotel rates in New York City are soaring: The average daily rate for a New York City hotel room will rise from $277.92 in 2022 to $301.61 in 2023, an increase of 8.5%, according to data from CoStar.
Hotel rates have continued to rise in 2024, rising 6.7% to $231 in the first few months of the year, when most rates fell due to weak demand compared to the same period in 2023.
In New York, just 2,242 hosts are registered with the city agency that will enforce new restrictions (Local Law 18), such as limiting reservations to two people.
The law also imposes steep fines for violations, including a long-standing rule that hosts must be at home for the duration of a stay.
Short-term rental listings have fallen 82 percent, from 22,246 in August last year to just 4,000 in May, “which could make the city less attractive to tourists,” Lane added.
The city argues that Local Law 18 was necessary because too many hosts were not following existing rules, causing trouble for neighbors and contributing to New York’s affordable housing crisis.
“The Short-Term Rental Registration Program has played a vital role in protecting our City’s housing from illegal activity and keeping New Yorkers safe,” said Special Enforcement Director Christian Costner. Travel trade magazine Skift.
“This legislation effectively prevented thousands of permanent housing units from being misused for illegal short-term rentals,” Klossner added.
Other large cities that have passed laws regulating short-term rentals are losing out to coastal and rural areas during the Fourth of July holiday season, according to AirDNA.
AirDNA reports that coastal locations are the most popular, with 1.63 million nights already booked, up 7.7% from the same period last year, while regional locations are seeing a 10.6% increase in demand compared to last year.
