Airbnb sues New York City over short-term rentals restriction

Friday, June 2, 2023

Airbnb has filed a lawsuit against New York City, challenging an ordinance that it claims imposes arbitrary restrictions on short-term rentals, severely limiting the local supply.

The 2022 ordinance, set to be enforced soon, would require property owners to register with the mayor’s office, disclose occupants, and promise compliance with various regulations.

Airbnb argues that these requirements are extreme and oppressive, effectively amounting to a ban on short-term rentals. The company accuses the city of failing to consider reasonable alternatives to such restrictions.

Mayor Eric Adams’ spokesperson stated that the administration is committed to ensuring safety, community livability, and the recovery of the hospitality sector, and that the rules governing short-term rentals have been clear for years.

Airbnb has filed the lawsuit in Manhattan state court, with three Airbnb hosts also filing a companion lawsuit against the city. Airbnb previously sued New York state in 2016 but dropped the lawsuit when the city agreed not to enforce the ban on advertising short-term rentals.

The company settled another lawsuit with the city in 2020 regarding monthly reporting requirements for listings, claiming that the 2022 ordinance violates those settlements. Local communities worldwide have been implementing regulations to control short-term rentals, citing concerns over noise, safety, and the impact on affordable housing.

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