Efforts to revive Airbnb in NYC are sputtering amid multi-million-dollar lobbying efforts

The latest effort to revive Airbnb in New York City is sputtering, after a city councilmember gutted a bill meant to legalize more short-term rentals in the five boroughs.

A 2023 crackdown on short-term rentals severely reduced the number of citywide listings on Airbnb and other similar websites. Opponents saw a chance to undo some of those restrictions when Councilmember Farah Louis introduced a bill in November that would allow owners and occupants of one- and two-family homes to host renters for less than 30 days without being present. The measure notably garnered immediate support from Council Speaker Adrienne Adams.

But Louis has since amended the legislation, stripping it of key reforms that Airbnb and short-term rental hosts favored. Louis cited legal concerns and potential conflicts with housing and building rules. But a group of property owners have accused her of acquiescing to the influential hotel industry by watering down the bill. If it passes in its current form, the only change would be a new provision allowing owners and occupants to lock parts of their homes while guests were present -- far from the initial intent. The response marks the latest escalation in a years-long, multi-million-dollar lobbying effort around short-term rental regulations.

The changes received praise from tenant groups that have partnered with the hotel industry and its labor union to oppose short-term rentals. But they’ve infuriated a group of small property owners, backed by Airbnb, who said they want the flexibility to lease parts of their homes and earn income without taking in tenants on year-long leases.

Louis’ spokesperson Daniel Heredia said the councilmember was unavailable for an interview about the revised bill on Monday. In a written statement, Louis expressed concern about what she described as growing tensions between supporters and opponents of short-term rentals. She also said divisive rhetoric had been focused on homeowners and lawmakers of color during the debate over her legislation.

“Moving forward, my office will continue working with the bill's co-sponsors and all stakeholders to refine this legislation,” Louis said. “We welcome constructive dialogue and remain focused on our original goal: creating policy that helps all New Yorkers, particularly small homeowners to thrive in our city.”

A spokesperson for Speaker Adams referred questions to Louis.

New York City laws have long banned short-term rentals, but many property owners skirted the regulations until a new law that took effect in September 2023 prohibited Airbnb, VRBO and other platforms from processing payments to owners who are not registered with the city and don’t have approval to rent their properties for less than 30 days. The new registration requirement eliminated more than 10,000 Airbnb listings almost immediately.

Officials from Airbnb and property owners from the group Restore Homeowner Autonomy and Rights, or RHOAR, said they were optimistic when Louis introduced her bill in November. New York City has nearly 319,000 long-term rental units in one- and two-family homes, according to the city’s most recent housing survey.

RHOAR spokesperson Gia Sharp, a Brooklyn homeowner, accused the hotel industry, which competes with short-term rentals for customers, of manipulating public discourse around the legislation and framing short-term rental as a threat to permanent housing.

“The hotel industry seems to have used their powerful influence and hypocritical alliances to once again shape housing policy for this city with the changes made late last week,” Sharp said.

Sharp said short-term rentals give one- and two-family homeowners flexibility in earning income to pay mortgages and other expenses without taking on a full-time tenant.

“We all seek and deserve affordable housing of our own,” she said.

She condemned an opposition coalition made up of legal service providers and tenants rights advocates, known as Tenants Not Tourists, as a “false flag” because they have cash and support from the Hotels and Gaming Trades Council labor union and the Hotel Association of New York City.

The tenant groups held a large rally opposing the measure at City Hall last month, arguing that short-term rentals take needed apartments off the market amid a housing shortage.

Whitney Hu, policy director at the organization Churches United For Fair Housing, said Louis’ original bill gained little support in the Council because tenant groups have mounted an effective “pressure campaign” highlighting the risk to the city’s housing stock.

“Sometimes you have odd bedfellows, but on this we agree,” Hu said of the alliance between tenant groups and the hotel industry. “Labor and advocates working together is powerful.”

State lobbying records show the Hotel & Gaming Trades Council gave Churches United for Fair Housing $75,000 for “civic engagement/community organizing” in December 2024. Airbnb spent $150,000 to help RHOAR’s advertising and advocacy and $450,000 to prop up an entity called “Homeowners for Financial Empowerment” in coordination with the organization last year, Bloomberg reported.

Airbnb has established a SuperPAC meant to support New York City council candidates who favor relaxing short-term rental rules, the New York Post reported last month. The committee, “Keeping New York Affordable,” has not yet filed disclosures with the city’s campaign finance board, records show.

In response to the amended legislation, Airbnb Policy Director Nathan Rotman criticized “hotel billionaires and special interests” who he said are “exploiting the affordability crisis to drive up profits” — a reference to record-high hotel rates. But he said his company will continue trying to win over councilmembers.

“We remain committed to working with lawmakers through their feedback and amendments, which have always been part of the legislative process, to continue to fight for outer borough homeowners and ensure that they can share their home on an occasional basis as a way to make ends meet,” Rotman said in an emailed statement.

Hotel & Gaming Trades Council Political Director Bhav Tibrewal blasted Airbnb’s complaints about the influence of the union as the “height of hypocrisy.”

The company shouldn’t blame others “for the lack of support they’ve seen for gutting affordable housing protections,” he added.

Clarification: This story was updated to clarify Restore Homeowner Autonomy & Rights spokesperson Gia Sharp's reaction to Councilmember Farah Louis' changes to the short-term rental bill.