The New York Short-Term Rental Easing Act died at the last minute, and there is no hope that 18,000 Airbnb (ABNB.US) homes will return

The Zhitong Finance App learned that the New York City Short-Term Rental Easing Act supported by Airbnb (ABNB.US) failed to be included in the city council's last vote agenda this year, causing the company's efforts to revive its business in New York City, one of the busiest travel markets in the US — once again thwarted. The city council was scheduled to hold its last session of the year on Thursday to vote on the bill. After that, the legislative cycle will be reset, and mayor-designate Zoran Mamdani will also be officially sworn in in January. However, due to strong opposition from the Hospitality Industry Union, the bill failed to advance successfully at the last minute, leaving Airbnb's business recovery plans in the key New York market once again facing major obstacles.

Proposer and city councilor Mercedes Narsis said in a statement on Thursday that the vote “ultimately failed” due to “tremendous external pressure and widespread misinformation that distorted its intention and impact.”

“This kind of atmosphere makes it harder to have the honest, fact-based discussions that New Yorkers deserve.” she said.

Meanwhile, Airbnb also expressed disappointment with the results in a statement, saying that as hotel prices continue to rise and homeowners are unable to survive on short-term rental income, the city “will no longer be a more affordable place to live and travel.”

“This decision puts the divisive political operation of the Hospitality Trade Union Council above a broad and diverse coalition that includes civil rights organizations and housing groups,” Airbnb said. “Today, the City Council has failed to make New York more affordable.”

It is worth mentioning that Mamdani publicly opposed the easing of restrictions last month and sided with the hotel trade union, believing that in a context where the housing supply is already tight, the new regulations will force the displacement of vulnerable communities.

The union praised the result in a post on social media platform X: “Tenants, homeowners, and workers should all get real affordable solutions; turning a home into a tourist rental would hurt everyone.”

Airbnb said earlier that even if the amendments are passed, it does not expect the tens of thousands of homes previously lost to return. “Any night only involves a small group of people,” that is, about a few hundred homes per night, Nathan Rotman, director of policy strategy at Airbnb's North America, said earlier this year.

The company says it won't give up. “Our commitment to making New York more affordable is unwavering.” The statement reads.

According to information, since September 2023, New York City has implemented new regulations that almost completely ban short-term rentals, resulting in more than 18,000 homes being forcibly removed from the Airbnb platform. Faced with the shock, the company immediately launched one of the largest political lobbying campaigns in its history in an attempt to push for policy adjustments to ease some restrictions. Although the regulation was not specific to Airbnb, as an iconic company in the global housing sharing sector, it has actually become a core subject of regulation in this round of industry restructuring.

Meanwhile, the amendment supported by Airbnb will allow owners of single and double homes to rent their main home on Airbnb and other platforms without being present at all times, and raise the maximum number of adults per reservation from 2 to 4 people per stay.