Local Law 18 in New York City has had significant impacts on short-term rental hosts, such as Malaika, who lost a key source of income when the law went into effect in September 2023. The law restricts stays of fewer than 30 days to two guests, requires hosts to be present during reservations, and prohibits locks on internal doors. As a result, many hosts have seen a drop in income and have had to adjust their rental arrangements to comply with the law.
Some hosts, like Gia Sharp, have experienced even more severe consequences, such as living in their car or moving in with family due to the loss of income from short-term rentals. The law was intended to crack down on illegal hotels, increase affordable housing supply, and improve safety for residents. However, the impact has led to the emergence of a black market for short-term rentals and a decline in Airbnb listings within the city.
Former city council member Ben Kallos, who authored Local Law 18, stands by the law as a means of reducing short-term rentals in favor of long-term leases. Despite the city’s efforts to enforce the law and process registrations, many hosts have struggled to comply with the complex requirements and have turned to alternative platforms like Craigslist to list their properties illegally.
The impact of Local Law 18 on New York City’s housing market has been mixed, with an increase in hotel revenues and ongoing rental price increases. While the law has led to a reduction in short-term rental listings, the city’s tourism industry has remained strong and is projected to see an increase in visitor numbers in 2024. However, the long-term effects of the law on housing supply and rental prices are yet to be fully realized.
Short-term rental hosts who have been unable to register have turned to illegal listings to continue renting out their properties. This black market for short-term rentals poses risks for guests who may encounter scams or fraudulent listings. Despite efforts by the city to crack down on illegal rentals, some hosts continue to operate illegally out of necessity due to the impact of Local Law 18 on their income.
Overall, the enforcement of Local Law 18 has had wide-reaching implications for short-term rental hosts, the housing market, and New York City’s tourism industry. While the law was intended to address issues related to illegal rentals and affordable housing, its implementation has raised challenges for hosts and led to unintended consequences. As the city continues to grapple with the aftermath of the law, adjustments and modifications may be necessary to achieve a more balanced approach to short-term rentals.
