In 2023, New York City implemented a ban on short-term rentals, which significantly reduced the number of available listings from approximately 13,000 to around 1,600. The initiative aimed to return more apartments to the long-term rental market and alleviate increasing rent prices. However, three years post-implementation, rental prices in the city have risen by 11%, and hotel rates have reached record highs.
An analysis suggests that the ban has had little impact on easing rents, with estimates indicating that the typical renter may have saved about $52 annually, although this figure is uncertain and could even imply an increase in costs instead. The most significant consequences of the ban have been felt by lower-income, predominantly non-white hosts in areas such as Southeast Queens, where lost listings represented nearly six months of median income. In contrast, wealthier neighborhoods experienced a loss equivalent to about two months of median income.
Many former short-term rental listings have either been converted to minimum stay requirements of 30 days or have entirely exited the platform. The ban has also adversely affected hosts who relied on this income supplement. Consequently, tourists and visitors, including those attending significant events like the World Cup, are now being directed to accommodations in New Jersey rather than New York City.
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