Efforts by Airbnb (ABNB.US) to revive its business in New York City—one of the busiest tourist markets in the U.S.—have suffered another setback as a short-term rental easing bill backed by the company failed to make it onto the City Council's final voting agenda for the year. The Council had planned to vote on the bill during its last meeting of the year on Thursday before the legislative cycle resets and incoming Mayor Zoran Mamdani officially takes office in January. However, amid strong opposition from hotel industry unions, the bill was derailed at the last minute, dealing another major blow to Airbnb's recovery plans in this critical market.
Mercedes Narcisse, the bill's sponsor and a city council member, stated in a Thursday announcement that the vote "ultimately did not happen" due to "intense external pressure and widespread misinformation distorting its intent and impact." "This atmosphere made the honest, fact-based discussion that New Yorkers deserve much more difficult," she added.
Airbnb also expressed disappointment in a statement, warning that as hotel prices continue to rise and homeowners struggle to sustain themselves with short-term rental income, the city "will no longer be an affordable place to live or visit." "This decision prioritizes the divisive political tactics of the Hotel Trades Council over a broad and diverse coalition, including civil rights and housing groups," the company said. "Today, the City Council failed to make New York more affordable."
Notably, Mamdani publicly opposed easing restrictions last month, siding with hotel unions and arguing that the new rules would displace vulnerable communities amid an already tight housing supply. The unions celebrated the outcome on social media platform X, stating, "Tenants, homeowners, and workers deserve real solutions to affordability—turning homes into tourist rentals hurts everyone."
Airbnb previously indicated that even if the amendments passed, it did not expect tens of thousands of lost listings to return. "Any given night would involve only a small fraction," or roughly a few hundred listings per night, Nathan Rotman, Airbnb’s North America Policy Strategy Director, said earlier this year. The company, however, vowed to persist. "Our commitment to making New York more affordable remains unwavering," the statement read.
Since September 2023, New York City has enforced near-total restrictions on short-term rentals, forcing over 18,000 listings off Airbnb’s platform. In response, the company launched one of its largest political lobbying campaigns to push for policy adjustments that would relax some regulations. While the rules were not specifically targeting Airbnb, the global home-sharing giant has effectively become the primary focus of this regulatory crackdown.
The proposed amendments backed by Airbnb would have allowed owners of single-family and two-family homes to list their primary residences on platforms like Airbnb without requiring constant on-site presence, while also raising the maximum number of adults per booking from two to four.
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