Banning Airbnb in NYC – The Marginal REVOLUTION

  • NYC is now the most expensive tourist destination:
    • Average hotel prices in New York City rose 7.4 percent last year (July 2023 to July 2024), compared to just a 2.1 percent increase nationwide, according to data from CoStar.
  • Despite the promise of legislation, rents are skyrocketing and vacancy rates remain stagnant:
    • Lawmakers say the law will protect affordable housing, yet rents rose 3.4 percent during the first 11 months of the law’s passage, according to StreetEasy, suggesting other factors are driving up rent prices.
    • The median rental price in downtown Manhattan over the past year has topped $5,000 USD for the first time in history.
    • Rent increases in New York City since the law went into effect continue to outpace nearby cities such as Boston, Chicago and Washington, DC
    • Apartment vacancy rates in New York City have remained unchanged at about 3.4 percent since the law went into effect, according to Housing Directory.
    • New York City’s vacancy rate also continues to lag far behind Chicago, Boston and Washington, DC

Here is the full Airbnb blog post.



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