NYC’s housing crunch remains despite short-rental crackdown

The housing crisis in New York City remains unchanged despite the 2023 crackdown on short-term rentals, particularly on Airbnb, which ate into the long-term rental market.

Proponents of the rule said it would curb noisy, disruptive tourists in residential buildings and free up housing for residents.

Two years later, the law slashed Airbnb listings from 38,500 in 2023 to about 3,000 legal rentals now, reducing the number of rowdy tourists taking up apartments.

However, the city’s housing vacancy rate is at an all-time low at 2.45% and median rents in Manhattan still hit a record $4,700 per month.

Low availability of rentals has largely benefitted NYC hotels, whose occupancy remains strong. Average nightly rates have climbed to $283 in July, a 7% jump from two years ago.

Short-term rentals are only a small share of the city’s one million open-market units, according to The Wall Street Journal, which notes that the rent levels are also affected by demand and lack of new construction.

Some developers are converting several NYC hotels that housed migrants into residential units and are set to create over 1,100 apartments. This is still a drop in the bucket.