Airbnb sues NYC over "de facto ban" on STRs

Airbnb Inc. is suing New York City over a new law that the vacation rental giant calls a "de facto ban" on short-term rentals. 

In a lawsuit filed at the New York State Supreme Court, the company argues "Local Law 18" effectively puts in place the "most extreme and oppressive regulatory scheme yet, which operates as a de facto ban against short-term rentals in New York." 

The law is set to go into effect in July. Airbnb is asking the court to block enforcement. 

The law requires Airbnb hosts to register with the city's special enforcement office and to certify compliance with "the maze of complex regulations," Airbnb said in the filing, ensuring "that only a miniscule number of hosts will ever be granted a registration." In a sign of what’s to come, hotel prices have soared since the crackdown on STRs began. 

(Read more: Forbes has tips for landlords navigating NYC's short-term rental landscape here.) 

Mayor Eric Adams' administration "is committed to protecting safety and community livability for residents, preserving permanent housing stock, and ensuring our hospitality sector can continue to recover and thrive," a New York City spokesperson said. 

The looming legal battle comes as cities from coast to coast are increasingly regulating STRs. Just this past week, Tybee Island, Georgia passed an STR ban that covers 85% of the island. And in California, officials are placing a hard cap on the number of STRs allowed in unincorporated parts of Marin County, including the rustic towns along the Point Reyes National Seashore. 

Below, please find Property Guard's weekly short term rental regulation round-up, highlighting state and local news regarding short term rental regulations to regulate (or prohibit) Airbnbs and other STRs. If you want a comprehensive data solution on STR regulations in all 20,000 state and local jurisdictions, contact us here.

New and Proposed Regulations:

• Tallahassee, Florida: Legislation that would give the Sunshine State more power over STRs rather than local governments is getting mixed feedback. (link) 
• Hampton, Virginia: City officials are weighing replacing a requirement of two public hearings with a permit application and unit inspection fees. (link)
• Fort Worth, Texas: Since new STR regulations went into effect last year, city officials have issued 114 citations for non-compliance. (link) 
• Ventura, California: City officials are considering a stakeholder group to help tighten regulations on STRs. (link) 

Other Noteworthy News:

• Money, money, money: Seattle renters who host through Airbnb can rake in about $5,000 a year, according to 2023 figures. (link) 
• Find the exit: Colorado banned a businessman from selling securities in the state after he used social media to aggressively solicit investments in his STRs. (link) 
• A whole new world: Digital nomads aren't new – but they're on the rise and reshaping real estate around the globe. (link) 
• Safety standards: Airbnb insists its properties are safe but concerns linger over the lack of standards across the industry. (link)