Airbnb Reveals New Impacts of Regulation in New York: What Can Canada Learn?

As New York faces the negative effects of its stringent regulation, Canada could learn from this data to avoid similar losses.

09/12/2024 - Airbnb released new data highlighting the negative impacts of short-term rental regulations in New York, particularly after the implementation of Local Law 18 (LL18). The research shows a 90% drop in Airbnb listings, mainly affecting the city's outer boroughs like Brooklyn, Queens, and the Bronx.

These areas could lose up to $1.6 billion in visitor spending, along with thousands of jobs and millions in worker earnings. The measure has not delivered the expected benefits for housing, with rents rising and vacancy rates remaining unchanged.

• 90% drop in Airbnb listings in New York: Since the implementation of Local Law 18, Airbnb listings have dropped by 90%, mainly affecting the outer boroughs of the city.
• $1.6 billion loss in visitor spending: New York's outer boroughs could lose up to $1.6 billion in tourism spending, negatively impacting local small businesses.
• Increase in hotel prices: Since the regulation was introduced, hotel prices in New York have increased by 6%, with the average daily rate for hotel rooms rising by 50% compared to the previous year.

These findings raise an important discussion for Canada. The economic impact seen in New York, especially in its outer boroughs, serves as a warning about the side effects of overly restrictive policies.

The New York case also raises the issue of tourism concentration in areas like Manhattan. With fewer rental options in the outer boroughs, visitor numbers and tourism spending in those areas have significantly decreased, while hotel prices have surged. In Canadian cities with similar characteristics, such as Montreal or Toronto, poorly balanced regulation could push tourism to concentrate in a few areas, negatively affecting local economies and small businesses.

Read Airbnb's data on the impact of regulation in New York here.