While it may still be early to measure the impact of these restrictions on New York City’s short-term rental market, there are cues to be taken from similar laws passed in other cities around the world.
Let’s face it: New York is hardly the first city to impose regulations on short-term rentals. Today is the official deadline for hosts to register their listings.
Attempts to regulate short-term rentals around the world may have lessons — and implications. While it may still be early to measure the impact of these restrictions on New York City’s short-term rental market, there are cues to be taken from similar laws passed in other cities around the world.
Let’s take Amsterdam, for instance: In January 2017, the Dutch city initiated its first restrictions on vacation rentals. Any full-apartment listings that had accommodated 60 or more overnight stays in a year were automatically removed from platforms like Airbnb until the following year, with enforcement by Airbnb. Then, in July 2020, Amsterdam took additional measures to rebalance tourist and local dynamics. Amsterdam prohibited Airbnb and similar platforms in three city districts and mandated permits elsewhere, limiting tourist rentals to a maximum of 30 nights annually.
How has this July 2020 decision impacted local short-term rental listings? According to a study conducted by short-term rental data provider Transparent, the primary metric to assess is the supply of listings. Naturally, transitioning from a potential of 360 days of rental income to 60, and subsequently further reducing it to 30, would deter many property owners. And it did — the number of properties listed in Amsterdam has declined by 70% since January 2019 and by 61% since the introduction of the latest regulations in July 2020.
And although there was a temporary decline in the percentage of professionally managed listings just before the regulatory change, likely due to owners reevaluating their participation, the chart below also illustrates a gradual increase in professionalization, with a 13% rise in the proportion of professionally managed listings between 2019 and 2021.
Amsterdam Listings Count Between 2019-2021
Moreover, there was a noticeable decrease in average daily rates as the restriction deadline approached, as owners tried to maximize their occupancy rates. However, in the six months following the restriction’s implementation, nightly rates surged by 24% compared to their pre-restriction levels.
Breezeway Integrates with Airbnb
Property operations platform Breezeway has partnered with Airbnb to offer a software solution for hosts and property managers. Breezeway uses Airbnb’s reviews API to link guest reviews with specific tasks, helping hosts identify areas for improvement. This partnership is designed to simplify preparation and communication, allowing hosts to manage Airbnb messages, provide detailed property information, and automate guest notifications among other automated tasks.
Edinburgh’s Popular Pop-up Hotels
You may recollect Skift Short-Term Rental Report discussing pop-up hotels serving as a solution for a tight rental market with restrictions. In 2020, there were eight hotels in operation in the city of Edinburgh. However, this number has increased to 17 during the summer, and approximately one-third of these properties have opened within the past year. The Evening Edinburgh News highlighted a significant surge in demand for pop-up hotels, showcasing a 215% rise in nightly rates since 2020, and the average occupancy rate for 2023 has remained robust at 87%.
New York City Office of Special Enforcement Understands..
New York City authorities have communicated to Booking.com that the city’s Office of Special Enforcement (OSE) has indicated that it will not enforce strict new measures in the initial stages for platforms actively cooperating to achieve compliance. Additionally, the NYC Public Advocate’s Office has informed certain hosts that the OSE will refrain from imposing fines on unregistered hosts in the early stages of implementing new regulations, except in cases of “egregious” violations, such as hosting large groups of people. For context, As of August 28, the OSE had only reviewed about one-fourth of the 3,250 host applications it had received, and approved only 257.
Elsewhere on Skift
The tightening of short-term rental regulations in New York City could impact hotel pricing during peak demand periods, such as major events and holidays. Hotel searches for the Christmas holiday season are already up 11% year-over-year, with prices increasing by approximately 5% on average. Analysts are divided on the extent of the impact, with some believing it may not be significant due to the city’s large market size and challenges in enforcement. Hotels that cater to leisure travelers and events overlapping with Airbnb’s customer base could benefit the most. However, others expect that hotels may regain pricing power on high-demand nights, like New Year’s Eve, if Airbnb supply decreases.
“You’d think a shrinking supply of short-term rentals would be a big boost to hotels. But it’s not at all clear how it will play out, and some will benefit more than others,” writes Skift’s Sean O’Neill.
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