A state judge in New York dismissed two lawsuits filed by Airbnb and three hosts against new regulations concerning tens of thousands of short-term rental listings in New York City.
The ruling paves the way for Local Law 18, a 2022 measure that obliges owners of short-term rentals to register with the Mayor’s Office of Special Enforcement. Furthermore, it lets property owners add residences to a “prohibited building list,” which will block payment at those addresses.
Airbnb criticized the law, calling it a “de facto ban” on listings under 30 days, and warned that the rules would eliminate 95% of its $85 million revenue in New York City.
Three separate hosts also filed a lawsuit expressing concerns over their financial loss. However, Judge Arlene Bluth dismissed these concerns as “entirely speculative” and supported the registration requirements, which she considered sensible.
She referred to statistics that showed the city received nearly 12,000 complaints and issued more than 15,600 violations related to short-term rentals between 2017 and 2021.
Housing advocates have applauded the ruling, arguing that short-term listings have constrained the city’s limited supply of permanent homes.
Under existing city law, rentals for less than 30 days are legal only if the owner or tenant is present during the guest’s stay, making most whole-apartment rentals illegal.
With more than 40,000 Airbnb listings in New York City, policymakers estimate up to 10,000 listings violate current laws.
Although Judge Bluth recognized the city’s slow pace in processing applications, she faulted Airbnb for failing to communicate the upcoming requirements with hosts. City officials have announced plans to begin enforcement on September 5.
Airbnb and the hosts who sued the city responded critically to the ruling, contending that the restrictions would harm New York’s tourism economy and ordinary New Yorkers.
However, supporters such as Tom Cayler, the chair of the “illegal hotel committee” for Westside Alliance, praised the decision and believe the law will enforce existing laws against short-term rentals. Airbnb is expected to appeal the decision.
