More than 20 months after the enactment of Local Law 18 (LL18) in New York City, its intended effects on housing availability and affordability remain unfulfilled. Instead, data indicates a rise in rents, with median rents in Manhattan exceeding $4,000 for the first time. Rents have increased by over 4 percent in boroughs like Brooklyn and Queens, while vacancy rates remain stagnant.
Nathan Rotman, Policy Director at Airbnb, stated, “NYC simply doesn’t have enough homes to meet demand. But instead of building more homes, local families who host have been scapegoated. Not only has this failed to improve the affordable housing crisis, it has cut vital income for thousands of everyday New Yorkers.”
The city’s vacancy rate stands at 3.2 percent, one of the lowest in the nation. Meanwhile, apartment construction starts have declined significantly. CoStar data reveals a drop of over 70 percent in Q1 2025 compared to the city’s 10-year average.
Hotel prices have also surged as short-term rental listings decreased by more than 90 percent following LL18’s implementation. The average nightly hotel rate reached a record $320. Community leaders note that neighborhoods like Crown Heights and Astoria are experiencing reduced visitor numbers and spending.
Critics argue that LL18 benefits large hotel chains by reducing competition under the guise of protecting housing affordability. In New York City alone, these entities have spent millions lobbying against short-term rentals.
Community and business leaders from all five boroughs warn that LL18 is detrimental to small businesses and local hosts. They cite up to a 70 percent drop in foot traffic in some areas and call for “common-sense updates” to the law.
A proposed bill aims to make New York City more accessible to travelers without affecting long-term housing availability. Nathan Rotman emphasized Airbnb’s support for balanced rules: “Airbnb supports thoughtful, balanced rules that protect long-term housing and give New Yorkers the ability to responsibly share their homes again so that they can afford to stay in their homes.”
