Tiny single-family homes and two-family homes are likely to return to the short-term rental market in New York City.
The proposal, known as House Bill No. 1107, has been introduced to the New York City Council by Council member Farah Louis of Brooklyn. If passed, it would allow hundreds of thousands of small properties across the city to be rented for periods of less than 30 days.
The proposal is supported by tiny home owners, who say that listing on platforms like Airbnb allows them to earn an additional income to meet their rental needs. And it would do so without having a long-term tenant, while renting out their homes for periods of the year.
Renters, of course, are fighting back, arguing that these listings are taking homes off the market and exacerbating the city’s already severe housing crisis.
The proposal for single-family homes in New York
The proposal, however, poses a significant challenge to New York City’s Local Law 18, which has banned short-term rentals of entire homes since September 2023. Currently, only room rentals and long-term rentals (30 days or more) are permitted.
As a result, the number of Airbnb listings available for stays of less than 30 days in the city has plummeted from 22,246 in August 2023 to just 4,000 in May 2024 — a staggering 82% drop.
Bill No. 1107 aims to allow single-family homeowners to convert their properties into furnished vacation rentals. The bill also removes the requirement for owners to be present during their guests’ stays. It would also allow up to four adults (rather than the current limit of two) to stay with their children.
An Airbnb spokesperson commented, “The proposed changes to New York City’s short-term rental law are a positive step to help homeowners earn additional income while out of town and make the city more accessible to travelers.”
However, discussions on Bill 1107 are expected to be extensive, with potential amendments on the horizon. The hotel industry is likely to oppose these changes, while Airbnb may step up its lobbying efforts. The stakes are high, especially as several cities, including Barcelona, are considering bans on short-term rentals, and others, such as Athens, Nice and Val d’Europe near Paris, are trying to impose restrictions.
Average hotel rate reaches $417 in New York City
New York City had hoped that Local Law 18 would help alleviate the housing crisis. But according to Airbnb, it has not had the desired effect. “A year ago, the city tightened regulations,” said Emmanuel Marill, Airbnb’s director for Europe, the Middle East and Africa. “A year later, there has been no improvement in the real estate market. We have seen rents increase by 3.4% in the first 11 months since the law was implemented. At the same time, hotel room rates have increased by about 7.4%.”
In just one year, it seems like New York City has become a complicated destination that those with less purchasing power can no longer afford. The New York Times reports that hotel prices in New York City are skyrocketing as the holiday season approaches. In September, the average price for a hotel room in New York City hit $417, according to CoStar. That represents the highest monthly price ever recorded in New York City since CoStar began tracking the data in 1987.
According to the data, there are more than 900,000 single- and two-family homes in the five boroughs, with renters in about 319,000 of them, according to the city’s most recent housing survey.
Whitney Hu, director of civic engagement and research for the nonprofit Churches United for Fair Housing, said the new measure would incentivize investors to buy small properties and convert them into short-term rental accommodations.
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