The ban on Airbnb in New York City has had a significant impact on owners of single- and two-family houses, who now say they are struggling to prevent foreclosure as short-term rental revenue is drying up.
A study conducted by a grassroots organization that represents single- and two-family homeowners was given to certain members of the City Council this week. It claims that since the new regulation, also known as Local Law 18, went into effect in September, housing costs for property owners have increased to more than 50% of their income.
According to a report by Restore Home Ownership Authority and Rights, or RHOAR, which the New York Post first reported, the financial blow may put its members at risk of losing their houses at a time when citywide home foreclosures are up 44% from the previous year.
As to the RHOAR study, over thirty percent of the 500 members of the group, who are mostly retired, jobless, or independent contractors spread throughout all five boroughs., claim they are unable to meet their expenditures in the absence of rental revenue.
Local Law 18 prohibits the use of separate apartments or living quarters for brief visits in both private residences and apartment complexes, with severe fines of up to $5,000 for each infraction. Rentals are restricted to two people. and bookings must be registered with the city in order to be made for stays shorter than 30 days.
Additionally, it mandates that visitors have unlimited access to the dwelling’s common areas and that owners be present for the duration of the stay. The law was pushed through by legislators in an attempt to solve the city’s affordable housing scarcity as well as abusive tactics by rogue landlords who converted flats into hotel rooms. The measure aimed to reduce the thousands of short-term apartment rentals, mostly in Manhattan.
Since the regulation went into force, Airbnb has experienced a more than 75% decline in listings. Thus, the RHOAR study recommended that lawmakers change the legislation.
