New York City imposes strict regulations on Airbnbs

Hundreds of Airbnb listings are disappearing in New York City. New strict regulations imposed by the city for this type of business are about to go into effect on September 5. According to The Wall Street Journal, "Hosts of short-term rentals need to register with the city to continue providing stays, and can only do so if they meet several requirements. These include not renting out an entire apartment or home, even if they own it. Hosts also must be present during their guests’ short-term stays."

The city and companies like Airbnb have long been governed by short-term rental regulations. Hosts say that this time is different and many aren't sure whether to continue renting out their homes. Meanwhile, thousands of people have fewer places to stay in the city. The Wall Street Journal reported that "The enforcement comes after years of legal back-and-forth between Airbnb and the city. Many residents and city officials say the changes are needed to combat the city’s affordable housing crisis."

However, Airbnb says its business model had no impact on the housing problem. Hosts say the rules hurt those who rely on extra income to survive in the city, particularly homeowners. "New York’s enforcement is one of the more high-profile examples of cities cracking down on short-term rentals. There are about 38,500 Airbnb listings in the city, not counting hotels that list on the platform, according to a legal filing. The annual net revenue for these listings is $85 million," according to WSJ.

Both owners and Airbnb claim that the requirements are not easy to meet and that officials take a long time to approve applications. "Airbnb and hosts say the rules make it nearly impossible for anyone to register a rental. Staffing challenges in the enforcement office mean hosts are facing delays in their applications. As of July 25, the city received 1,632 host registrations and approved 141," according to Airbnb.

New York City is taking steps to address the housing crisis. Last week the city reported that it plans to convert office buildings into housing, mainly in midtown Manhattan, and to convert manufacturing areas south of Times Square into new residential developments.

Bloomberg reported that the decision is part of a broader push to tackle housing issues and improve the city. With the measure, which updates zoning resolutions from 1961 and 1977, office buildings built before 1990 would be eligible to become housing, depending on the area.