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How Has The Airbnb Ban Affected The NYC Rental Market?

April 16, 2024 | By Roomrs

 

As the dust settles six months after New York City implemented strict regulations effectively banning short-term rentals, the intended outcomes seem to have missed the mark. What was meant to free up apartments for long-term residents and curb the disruptions caused by transient visitors has instead presented a new landscape ripe with opportunities, particularly for landlords exploring mid-term rental strategies. Not to mention, with inventory remaining low - pricing has NOT come down. 

 

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When the ban came into effect last September, nearly 15,000 short-term rentals vanished from platforms like Airbnb, with the majority being converted into slightly longer stays to comply with the new rules. The anticipated shift towards the availability of more permanent residences has yet to materialize fully. Instead, the market has seen a surge in listings for stays of 30 nights or more, suggesting that many apartments previously utilized for short-term rentals have not transitioned into long-term leases for permanent residents.

This shift has prompted a reevaluation of rental strategies among property owners. While the ban aimed to crack down on full-time landlords operating luxury whole-apartment rentals, it inadvertently impacted small-time hosts who relied on short-term rentals to supplement income or avoid the responsibilities associated with full-time tenants. The result? A growing number of landlords facing rising housing costs without immediate solutions.

However, amidst these challenges lie opportunities for landlords willing to adapt. The rise of mid-term rentals, spanning the gap between short-term stays and traditional leases, presents a promising alternative. By offering rentals for durations that don’t necessarily fit into a traditional one year lease, landlords can enjoy the benefits of consistent income without the risks associated with long-term tenants or the legal hurdles of short-term rentals.

The demand for mid-term rentals has always existed, but is now taking center stage in the aftermath of the airbnb ban. Cities neighboring New York City are experiencing a surge in mid term rental interest since the ban. Jersey City, Hoboken, and Weehawken have witnessed significant increases in demand, thanks to their proximity to Manhattan and the appeal of shorter commutes for professionals working in the city.

 

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In light of these developments, it's just good business for landlords to explore partnerships with furnished rental operators specializing in the mid-term and long-term rental markets. Here at Roomrs we offer comprehensive solutions tailored to the needs of both landlords and tenants in this evolving landscape. By leveraging Roomrs' expertise, landlords can optimize their properties for mid-term rentals, attract quality tenants, and ensure a seamless rental experience.

With a focus on providing fully furnished accommodations and personalized services, Roomrs facilitates hassle-free rental experiences for both landlords and tenants. From property management to tenant vetting and maintenance, Roomrs offers end-to-end solutions designed to maximize returns and minimize risks for landlords. In fact, Roomrs commands a 25% premium to market rents - and operates at an occupancy rate of 97%...if that doesn’t prove this market is hot, we don’t know what does. 

While the Airbnb ban in New York City has presented challenges for landlords, it has also opened doors to new opportunities. By embracing innovative rental strategies (feel free to also check out our last blog post extolling the advantages of furnished co-living here) and partnering with companies like Roomrs, landlords can thrive in this evolving landscape while meeting the changing needs of tenants.

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