New York City witnesses a significant decline in Airbnb, Inc
The strict enforcement of the city's guidelines, set to begin on September 5, has prompted many hosts to pull their listings in anticipation.
Hosts are now rushing to comply with the new mandates before the deadline, while Airbnb itself has blocked future bookings for dates post this timeline, Wall Street Journal reports.
The city's revised guidelines necessitate that all short-term rental hosts register with the city.
To qualify for registration, hosts cannot rent an entire apartment or house, even if they are the owners.
Additionally, hosts must be present during their guests' stays. These rules have stirred concerns among hosts, with many suggesting the regulations pushed them out of the market.
Describing the stringent regulations as "a de facto ban on short-term rentals," Airbnb has been vocal about its concerns. Hosts claim that the atmosphere feels notably different this time around.
The ripple effects of these regulations are not limited to New York. City councils in Dallas, Philadelphia, and New Orleans have already established their own set of restrictions for short-term rentals.
The decisions made in New York could set a precedent for other cities, leaving the industry and its patrons on their toes.
Many hosts say they have been using the platform to rent their apartment when traveling. For such users and hosts, the additional income from Airbnb rentals has been a financial boon, allowing them to pursue other passions and careers.
The city's measures come after a prolonged legal tussle with Airbnb. Authorities argue that these measures address the city's affordable housing crisis, while Airbnb and its hosts acknowledged becoming the soft targets.
With approximately 38,500 Airbnb listings in New York, translating to annual net revenue of $85 million, both sides have high stakes.
Starting September 5, hosts must have their registrations in order or possess Class B status to offer short-term rental stays.
Notably, platforms like Airbnb, Vrbo, and Booking.com
Conversely, guests are exempt from penalties but will find their accommodation choices dwindling.
Price Action: ABNB shares traded higher by 0.71% at $127.98 premarket on the last check Wednesday.
