Six months after New York City banned nearly all short-term rentals, such as Airbnb and Vrbo, neighboring New Jersey is reaping the benefits New York lost.
Demand for short-term rentals increased by 84% in Jersey City in February 2024 compared to February 2023. Short-term rental demand also increased in nearby cities by 59% in Weehawken, 40% in Union City, and 35% in Hoboken.
At the time, Airbnb said the new law placed a “de facto ban” on the company operating in the city.
“A recent survey found guests are less likely to visit New York City because of rising hotel prices and a drop in accommodation options following implementation of the city’s short-term rental rules,” a spokesperson for Airbnb told the Bergen Record.
New York City enacted the Short-Term Rental Registration Law in September, requiring short-term rental hosts to register with the mayor’s Office of Special Enforcement and prohibiting sites such as Airbnb from facilitating rentals between unregistered properties. Additionally, the law prohibits hosts from renting out entire apartments for less than 30 days. Only rooms inside inhabited apartments may be rented for shorter than that.
“Registration creates a clear path for hosts who follow the City’s long-standing laws and protects travelers from illegal and unsafe accommodations, while ending the proliferation of illegal short-term rentals,” Christian Klossner, executive director of the Office of Special Enforcement, said in a statement.
There are about 4,600 Airbnb properties available for short-term rent in the city, compared to the 34,566 properties available for long-term rentals, according to InsideAirbnb.
Hotels in the city are benefiting from the new law, too. Hotel occupancy rates in New York were up 4% in January and 3.4% in February.
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However, high rent rates in New York City seem unaffected six months into the new law. Lawmakers hoped the law would curb New York’s high rent prices. Rental rates for one-bedroom apartments in the city increased 18% in February compared to February of the previous year.
A 2023 study examines Irvine, California, which banned short-term rentals in 2018. Two years later, rent dropped by 3%.