Airbnb sues New York City over restrictions on short-term rentals

Company says ‘de facto ban’ would make it much more difficult for people to rent out their properties

Airbnb called the legislation ‘extreme and oppressive’ (AP)

Airbnb is suing New York City over new rules that the company says imposes arbitrary restrictions that would greatly reduce the supply of short-term rentals.

The 2022 legislation, known as Local Law 18 and which the city plans to enforce from 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.

Airbnb said called the restrictions “extreme and oppressive” and a “de facto ban” against short-term rentals that has left the company no choice but to sue.

“Taken together, these features of the registration scheme appear intended to drive the short-term rental trade out of New York City once and for all,” a statement from Airbnb said. The company added that the mayor’s Office of Special Enforcement “failed to consider reasonable alternatives.”

Three Airbnb hosts have also filed a companion lawsuit against the city.

The legal action comes in the same week that the Italian city of Florence announced an immediate ban on new short-term private rentals in its historic centre. The mayor said that officials were forced to take “politically disruptive actions” to tackle the issue.

Airbnb previously sued the state of New York in 2016 over a ban on advertising short-term rentals. It dropped that lawsuit when the city promised not to enforce it.

In 2020, Airbnb settled a lawsuit against the city over monthly reporting requirements for its listings. Airbnb said the 2022 violates both settlements.

According to Reuters, 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 number of short-term rental listings available in NYC increased 27 per cent in the year since April 2022, but are still more around a third lower than the levels seens pre-pandemic in 2019, says short-term rental analytics company AirDNA.

Additional reporting by Associated Press.