In a lawsuit filed on Thursday, Airbnb accused New York City of enacting a “de facto ban” on short-term rentals. The business claims that this regulation would restrict the number of persons who may provide rentals in the city and will limit the number of hosts who can offer them.
In a complaint with the New York State Supreme Court, the firm claims that through legislation approved in 2022, New York’s city council essentially established “its most extreme and oppressive regulatory scheme yet, which operates as a de facto ban against short-term rentals in New York”.
Airbnb, in a letter to hosts, said the “filing comes only after exhausting all available paths for a sensible solution with the City”, asking the court to stop “Local Law 18” from going into effect.
The norm will reportedly make it harder for hosts to conduct business because it calls for them to register with the Mayor of New York City’s Office of Special Enforcement (OSE) and attest that they will adhere to “the maze of complex regulations” for zoning, multiple dwelling law, housing maintenance code, and construction code.
A New York City spokesperson said in a statement that Mayor Eric Adams “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.”
According to the short-term rental analytics business AirDNA, the number of short-term rental listings in New York City climbed 27% year over year in April 2023, however listing counts are 32% lower than in 2019. Airbnb’s yearly net income in New York City was $85 million in 2022.