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Amanda Hoover

Business
Oct 9, 2023 7:00 AM


NEW YORK’S AIRBNB BAN IS DESCENDING INTO PURE CHAOS

People are listing short-term rentals on social media and lesser-known
platforms, bolstering a rental black market in New York City.
Photograph: ED JONES/Getty Images

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Save this storySave

As few as 2 percent of New York City’s previous 22,000 short-term rentals on
Airbnb have been registered with the city since a new law banning most listings
came into effect in early September. But many illegal short-term rental listings
are now being advertised on social media and lesser known platforms, with some
still seemingly being listed on Airbnb itself.



The number of short-term listings on Airbnb has fallen by more than 80 percent,
from 22,434 in August to just 3,227 by October 1, according to Inside Airbnb, a
watchdog group that tracks the booking platform. But just 417 properties have
been registered with the city, suggesting that very few of the city’s short-term
rentals have been able to get permission to continue operating.

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The crackdown in New York has created a “black market” for short-term rentals in
the city, claims Lisa Grossman, a spokesperson for Restore Homeowner Autonomy
and Rights (RHOAR), a local group that opposed the law. Grossman says she’s seen
the short-term rental market pick up steam on places like Facebook since the
ban. “People are going underground,” she says.



New York’s crackdown on short-term rentals has dramatically reshaped the
vacation rental market in the city. People are using sites like Craigslist,
Facebook, Houfy, and others, where they can search for guests or places to book
without the checks and balances of booking platforms like Airbnb. Hotel prices
are expected to rise with more demand.

Search for a short stay on Airbnb, and there are few places scattered across the
map. Many of those old listings have turned into stays of 30 days or
longer—meaning they do not need to be registered.



AirDNA, a short-term rental intelligence firm, found just 2,300 short-term
rentals on Airbnb in New York City by late September. The number of stays
advertised as long-term rentals now makes up 94 percent of Airbnb’s listings in
the city, AirDNA’s data shows. Hosts must meet strict requirements to be
approved as a short-term rental—they can have only two guests, and the host must
be present in the home during the stay. This change banned many whole apartment
listings, except for those that fell under a Class B dwelling category, like
hotels, boarding houses, and clubs.

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But people are finding ways around the rules. Many listings on Airbnb now
include a space in the property’s description for hosts to enter a registration
number or state that they are exempt. WIRED searched Airbnb for stays in New
York and found many short-term rentals that list themselves as exempt from the
city’s registration rules, but there are still several entire units available
for short stays that do not appear to be hotels or exempt units.



In one listing marked as exempt, the host asks for guests to avoid interacting
with the building’s concierge. On another listing, a host claims they used to
live in the unit but have moved to New Jersey and now rent it out. One appears
to be a rowhome in a mostly residential neighborhood in Brooklyn. Airbnb uses
the city’s verification system to flag unregistered units. The company did not
provide comment for this story addressing these specific listings flagged by
WIRED. Nathan Rotman, the public policy regional lead for Airbnb, says the
company is “working closely” with the city as it implements the new registration
law.



Inside Airbnb’s data shows some 2,300 short-term properties have listed
themselves as exempt from registration on Airbnb. There are a few hundred more
that do not say whether they are exempt or registered, according to the data.
Another 35,000 are long-term rentals. Airbnb did not confirm the numbers in the
data scraped by Inside Airbnb. The Mayor's Office of Special Enforcement in New
York, which manages the registration program, did not provide an update on the
total number of short-term rentals it has registered, or whether it has issued
violations for illegal listings. 

The New York City law is just one striking way cities are fighting back against
short-term rentals. Supporters of the rule argued it would free up apartments
for New Yorkers, who pay high rent prices and are facing housing shortages and
insecurity. But others, including small-time landlords, said it would take away
a source of flexible extra income without making a dent in the housing supply
crisis.

Those smaller landlords are still pushing New York City councilors to change the
rules to allow them to rent out their units. RHOAR is made up of hosts who own
and occupy single-family homes or homes with two dwelling units. These hosts
feel they have been unfairly looped in with big landlords. Grossman says RHOAR
has met with city councilors in hopes of changing the law so that smaller hosts
can still legally do short-term renting.

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Outside of Airbnb, people are posting listings and seeking short-term rentals in
Facebook groups. Ads on Craigslist for rentals have weekly or nightly prices
listed—WIRED found one listing with a weekly and nightly price on Craigslist
that also appears on Airbnb, but can only be booked for 30 days or longer on
Airbnb. These off-platform rentals pose risks to both guests and hosts, who
could get scammed without the protections of bigger companies like Airbnb. 

Craigslist did not respond to a request for comment. Meta, Facebook's parent
company, did not comment on specific listings flagged by WIRED, but the
company's policies require buyers and sellers in Facebook Marketplace to comply
with local laws, and the company prohibits people from promoting illegal
activity in Facebook pages and groups.  

Then there’s Houfy, another website listing short-term rentals. WIRED found that
many of the listings come from guests who joined the site in September, the same
month New York’s new registration rules took effect. The intention is for guests
to book directly with hosts—think Airbnb without the fees. The site compares
prices for the same property on Airbnb and Houfy and claims to show how much
people can save by avoiding Airbnb’s fees.

Houfy has received a notice from New York City about the new rule and is
“reviewing how to comply with their rules,” Thijs Aaftink, CEO of Houfy, tells
WIRED. Aaftink says Houfy, unlike Airbnb and other rental sites, does not take
commissions on transactions between hosts and guests, and argues the company “is
therefore not part of the transaction.” He says hosts are responsible for
complying with local laws when listing properties.

After the rule change, Airbnb is shifting attention away from New York, which
was once its biggest market. Airbnb CEO Brian Chesky has recently said the
company is exploring longer rentals, as well as car rentals and dining pop-ups.
And it has got its eyes on Paris, its largest market and home to the 2024 Summer
Olympics.



“I was always hopeful that New York City would lead the way—that we would find a
solution in New York, and people would say, ‘If they can make it in New York,
they can make it anywhere,’” Chesky said during an event in September hosted by
Skift, a travel industry news site. “I think, unfortunately, New York is no
longer leading the way—it’s probably a cautionary tale.”

Updated 10-9-2023, 1 pm EDT: This story was updated to correct the description
of RHOAR's membership.






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