Taking a Bite out of the Big Apple? Why Airbnb is suing New York City

Airbnb and New York City have been at odds for a long time, and tensions reached new heights on Thursday when the home-sharing company sued the city. The aim is to overturn the recently imposed strict regulations that impose limitations on short-term rentals. The company described it as a “de facto ban” on short-term rentals that would go into force in July, limiting the number of persons who can host rentals in the city. Let’s take a deeper look at what’s causing the uproar. The lawsuit City councils around the United States are increasingly introducing ordinances to regulate short-term rentals. Some of them require hosts to obtain licences and pay registration fees or limit short-term rentals in business districts. In 2021, the city introduced a new ordinance requiring hosts to register in order to combat illicit short-term rentals. Short-term rentals, defined as stays of less than 30 consecutive days, are generally restricted under state law if hosts are absent. The complexity of these restrictions, as well as other complicated city rules, have been a source of conflict between the city and Airbnb. [caption id=“attachment_12681182” align=“alignnone” width=“640”] City councils around the United States are increasingly introducing ordinances to regulate short-term rentals. AFP[/caption] The company’s filing in the New York State Supreme Court says New York’s city council, through legislation passed in 2022, effectively implemented “its most extreme and oppressive regulatory scheme yet, which operates as a de facto ban against short-term rentals in New York.” Airbnb, in a letter to hosts, said “today’s filing comes only after exhausting all available paths for a sensible solution with the City.” The law, according to the filing, will make it more difficult for hosts to do business, requiring them to register with the New York City Mayor’s Office of Special Enforcement (OSE) and to certify that they will comply with “the maze of complex regulations” for zoning, multiple dwelling law and housing maintenance code as well as construction code. The short-term rental company is requesting that the court blocks the enforcement of “Local Law 18”. OSE application reviews will ensure “that only a miniscule number of hosts will ever be granted a registration,” Airbnb said in the filing. A New York City spokesperson said in a statement that the administration of Mayor Eric Adams “is committed to protecting safety and community liveability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive.” The mayor’s office said it will review the lawsuit. What it means for Airbnb The 2022 ordinance, which the city plans to begin enforcing next month, would require owners to register with the mayor’s office, disclose who else lives in the property, and promise to comply with zoning, construction and maintenance ordinances. In some places, opponents have raised concerns about noise and safety. Critics also say the growth of short-term rentals pioneered by Airbnb has contributed to a shortage of affordable housing for residents, particularly in vacation towns. Those complaints extend far beyond US borders. [caption id=“attachment_12681152” align=“alignnone” width=“640”] Airbnb said that in the first week of July, more than 5,500 short-term rentals are reserved to host more than 10,000 guests in New York City. Reuters[/caption] While Airbnb sees the platform as important to the city’s tourism industry and residents’ income, critics argue that many listings function as “illegal hotels” exacerbating the housing shortage, according to the New York Times. The lawsuit also raises questions about the broader debate surrounding Section 230 of the Communications Decency Act, which provides protections for tech companies, as reported by Mirror. Short term rentals in New York Airbnb said that in the first week of July, more than 5,500 short-term rentals are reserved to host more than 10,000 guests in New York City. The company said in the filing a previous law which went into effect in 2021 prompted 29,000 hosts to leave the short-term rental market in New York. The number of short-term rental listings available in New York City increased 27 per cent year-over-year in April 2023 but listing counts are 32 per cent below 2019 levels, according to short-term rental analytics company AirDNA. “The vast majority of listings in New York are either private or shared rooms, commercial properties, or listings that only support long-term stays,” said AirDNA Chief Economist, Jamie Lane. Airbnb’s annual net revenue in New York City in 2022 was $85 million (Rs 699 crore), according to the filling. This law may become a challenge for the hosts to stay in the short-term rental market. Airbnb and New York’s history of legal disputes This in not the first dispute between the Airbnb and the city. In a prior lawsuit resolved in 2020, Airbnb sued the city in response to their attempt to compel the business and other platforms to provide further data about hosts, as reported by Mirror. Other cities, such as Santa Monica, Boston, and San Francisco, have implemented registration schemes with success in reducing listings. The outcome of the lawsuit and potential legal challenges may impact the regulation of online platforms in New York City and beyond. In 2020, Airbnb settled a lawsuit against the city over monthly reporting requirements for its listings. Airbnb said the 2022 ordinance violates both settlements. With inputs from Reuters Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.