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Is This the End of Airbnb and Short-Term Rentals?

by Aoife O'Riordan

Oct 17, 2023

© Baloon111 | Dreamstime.com

Daily

For years, we’ve taken booking an Airbnb or other short-term vacation rental property for granted. Planning a weekend trip to New York City and wanting to experience life as a New Yorker in a classic townhouse with a balcony? Check Airbnb. Or what about a longer vacation to Florence, Italy, in a true historic villa on the water? Hit up any of those many other popular rental platforms like VRBO and Booking. com. But this all has now changed … .

Cities across the world are imposing strict laws and partial bans on Airbnb properties, leaving visitors with far fewer options for lodging. While many large cities provide a wide variety of hotels, from budget-friendly hotels to hostels to luxury, boutique properties, many travelers want that feeling of a genuine experience. This means “living” like a resident of the city, and what better way to do this than by living in an actual house or apartment (or even villa)?

As of early September, New York City has removed thousands of short-term rentals and Airbnbs via Local Law 18. This law, also known as Short-Term Rental Registration Law, requires hosts of short-term rental platforms to register with the Mayor’s Office of Special Enforcement. This new law has severely cut down on the number of short-term rental properties in the city.

And it’s safe to say Airbnb was less than happy about the decision, calling it “unreasonable.”

“New York City’s short-term rental rules are a blow to its tourism economy and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home sharing and tourism dollars to make ends meet,” commented Theo Yedinsky, global policy director, Airbnb.

But the Big Apple isn’t the only city worldwide to impose such severe crackdowns. In Florence, Italy, the city announced an immediate ban on new short-term private vacation rentals. The reason? Lack of affordable housing. Reports of students in Florence camping in tents on campuses to protest the lack of such housing is just the tip of the iceberg. In a city with already 11,000 short-term private rentals, residents struggle to find affordable housing, and this strict ban seeks to partially resolve this and draw residents back to the historic city.

Other cities are joining the growing list to impose either full bans or bans on new short-term vacation rentals. Since 2021, Paris now requires all Airbnb listings for entire homes available as short-term rentals to display a registration number. The hope is to create a few more steps to prevent new short-term vacation rentals from entering the city. Berlin also revised a law this past March requiring all Airbnb listings to provide a registration number or contact details.

Rental properties in Amsterdam must follow strict rules about property operations, with harsh fines for any violations. This isn’t to say all large cities are against Airbnbs. For example, London has a whopping 81,000 Airbnb listings alone in the city, and the city shows no signs of keeping this number from growing, either.

So what are the downsides to imposing such strict regulations? For starters, many of these cities with short-term vacation rental properties are big tourist destinations, but this doesn’t mean people don’t also live there. The rise of cost of living across the world plays a crucial role in this, with many residents forced to leave altogether because they either cannot find a residence or simply cannot afford those available.

Then there’s the increase of mess, excessive noise and greater risk of crime from guests staying at short-term rentals as opposed to long-term residents. And don’t think hotels haven’t had their say on this. Many hotels have fought Airbnb’s expansion into cities like New York City for years, and they will continue to fight.

But then there’s the other side; those who seek an alternative source of income and, of course, the travelers. After all, these properties provide an authentic experience to travelers abroad.

So, is there to be a solution? Or will this back-and-forth, push-and-pull dynamic between short-term vacation rental platforms and cities continue until compromises are made, if compromises can even be found?

 

 

 

 

 

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