More than 75% of Airbnb short-term rentals have disappeared from the Big Apple after the city cracked down on the home-sharing website, according to a report.
The rapidly disappearing listings have left thousands of visitors hoping to vacation in Manhattan in limbo – and it’s expected to be a boon for the city’s hotel industry.
The controversial rules for Airbnb’s largest market, which went into effect on September 5, limit all short-term rentals to just two guests and require hosts to be present for stays of less than 30 days.
Hosts who have not registered their properties and received approval from the city could face fines of up to $5,000 for skirting the new rules.
Airbnb faces similar fines, which is why the San Francisco-based company is suspending the calendars of its short-term renters who didn’t provide a city registration number.
Existing short-term rental reservations made before September 5th will be honored until December 1st.
The crackdown has reduced the number of short-term rentals by 77% since the rules took effect – to 4,600 as of September 10, down from 22,500 three months ago, according to travel industry website Skift, citing data from AirDNA.
Some of those properties switched to renting for stays of 30 days or longer, increasing 48% to 34,900, accounting for 87% of all Airbnb listings in New York City, according to the data.
“Everyone is in a bind trying to figure out what the future holds and trying to figure out the next steps,” Lisa Grossman, a travel agent and founder of an advocacy group for private homeowners who rent spaces on Airbnb, told The Post on Monday.
The city’s strong hotel industry, which has long battled the rise of Airbnb, will be among the biggest beneficiaries of the new rule, according to industry experts.
According to Skift, hotels in New York City predicted a 10% increase in revenue per available room next year, but with a stymied Airbnb, that increase could rise by as much as 16%.
According to Kevin Davis, CEO of JLL Hotels & Hospitality Americas, Google searches for city hotels increased 24% in the past week.
“We’re seeing tremendous interest in people staying in hotels in New York City,” Davis told CNBC on Monday.
The city argued the registration was necessary because so many hosts were not following the law. She hopes the new rules will help ease the housing crisis caused by a shortage of rental inventory that has catapulted rents to record levels.
“It was a hush, hush thing [to be an Airbnb host] because they didn’t follow the city rules, but now NYC has forced Airbnb to follow the rules,” Syed Lateef, an Airbnb superhost who runs SyedBnB, told The Post.
“The hotel industry will win, the landlords will win and the small, small Airbnb hosts will win because there will suddenly be more demand for their accommodations,” Lateef added.
Chirstian Klossner, executive director of the city’s Office of Special Enforcement, which regulates the industry, said in a statement: “Registration creates a clear path for hosts to follow the city’s long-standing laws and significantly protects travelers from illegal and unsafe accommodation.” Limiting the spread of illegal short-term rentals.”