[New York Diary] The Airbnb You Had Your Eye On Has Disappeared?

Airbnb Faces Crackdown in New York City
Hotel Prices Surge, Affordable Options Dwindle
New Regulations Aim to Protect Residents Amid Housing Shortage

If you recently searched for accommodation for a trip to New York, USA, you might have noticed two things. First, hotel prices in New York City, especially in Manhattan, have risen more than expected. Second, the number of relatively affordable Airbnb listings has noticeably decreased. There are also complaints that Airbnb listings they had earmarked early on suddenly disappeared from the list.

[Image source=AP Yonhap News]

On the 6th of this month (local time), New York City effectively declared war on Airbnb. Individuals offering Airbnb accommodations for less than 30 days must register officially like hotels and are required to report the host’s personal information, rental income, and bank account details. This is also the basis for paying additional taxes.

However, even after paying a registration fee of $145 (valid for two years) and going through a complicated registration process, not all 'hosts' qualify to operate short-term Airbnb rentals. According to AFP, out of more than 3,800 applications submitted before the new Airbnb law took effect on the 6th, fewer than 300 were approved by New York City. Gothamist reported that "the number of New York City apartments available for short-term weekend bookings on Airbnb dropped by about 9,000 compared to the previous month" immediately after the law’s enforcement. With the added tax burden, the number of Airbnb listings in New York City is expected to continue decreasing.

Tourists hoping to save even a small amount on accommodation costs in notoriously expensive New York travel are inevitably disappointed. However, many New Yorkers welcome this decision by the city. The regulation stems not only from lobbying by the hotel industry but also from long-standing complaints by New Yorkers who had to share cramped residential buildings with tourists from around the world.

New York City is a representative tourist city bustling 365 days a year with visitors from all over the world. But with the surge in Airbnb, tourists flooded not only the streets but also ordinary homes and apartments, forcing New Yorkers to endure disturbances such as drinking and noise that harmed their living environment. Danny Rossi, a resident of Queens, expressed dissatisfaction, saying, "Most people don’t want strangers entering the building where they live," and added, "Neighbors have rights too. Apartments are for living in, not for renting out for a few days."

There have also been claims that Airbnb is driving up rent prices in New York City. The average rent in Manhattan surpassed $5,500 in July, reaching an all-time high, and Airbnb’s impact is considered a significant factor behind this rise. Considering that about 40,000 listings were available on Airbnb at the beginning of the year, the places for New Yorkers to live have decreased accordingly. Moreover, New York City has long suffered from a chronic housing shortage. Bloomberg cited past reports stating that for every 1% increase in short-term Airbnb listings in New York City, nearby rents rose by 1.6%, noting, "While landlords’ living expenses become more comfortable, local residents’ living costs increase."

Of course, some people who find it difficult to afford expensive rent or mortgage payments rent out part of their homes on Airbnb. However, this is clearly a money-making business that does not pay proper taxes. A New Yorker who supports Airbnb regulation pointed out, "Isn’t this ultimately tax evasion?" Fred McNulty said, "Airbnb is a 'company' that makes money by avoiding the laws and regulations that hotels and motels must follow," adding, "It offers travelers cheaper and more flexible options but is problematic." He further noted, "Companies operating under the name of the sharing economy creatively avoid regulations while taking over existing industries’ domains."

Some voices warn of backlash from this measure. RHOAR, a group of small landlords owning two or more properties, expressed concern that "it will affect mortgage repayment ability and expand into an additional housing crisis." Airbnb also argued that this measure would harm New York’s tourism economy. There are predictions that hotel prices will continue to rise. Emily Decote, who works in Manhattan, said, "Airbnb needs regulation," but also predicted, "It seems inevitable that those using extra space to earn living expenses for their families will be adversely affected. It won’t be good for the tourism industry either."

While disappointing for tourists, many New Yorkers living locally, even if only for a short time, naturally nod in agreement with this regulation. If the sharing economy turns into speculative play and even pushes out residents, regulation becomes essential.

This content was produced with the assistance of AI translation services.