Airbnb Loses in NYC: Strict Short-Term Rental Rules Stay Put

A bill backed by Airbnb that sought to ease New York City’s strict short-term rental regulations didn’t make it on the City Council’s final voting agenda of the year, effectively ending its chances of passage in the current legislative session. The proposal had been expected to come up during the council’s last meeting before members adjourn and a newly elected mayor and council take office early next year.

Because the measure was left off the agenda, it will not move forward for now and would need to be reintroduced in a future council session to be reconsidered.

Goals of the proposed bill

The bill introduced earlier this year aimed to roll back some of the city’s tight restrictions on short-term rentals. It would have allowed owners of one and two-family homes to rent out their entire primary residences even when they were not present.

The proposal also sought to increase the maximum number of adult guests from two to four and permit hosts to install interior door locks.

Supporters argued that these changes could help revive tourism and short-term rental activity, particularly outside Manhattan, where demand remains strong. The reforms were also expected to support local businesses and provide additional income opportunities for residents without significantly affecting housing affordability.

Concerns raised by opponents

The proposal faced strong opposition from many City Council members, housing advocates, and hotel unions. Critics argued that easing the rules could worsen housing shortages, encourage the conversion of long-term housing into STR accommodations, and displace permanent residents.

Broader context on New York’s legal framework

New York City’s current STR framework is governed by law that requires hosts to register with the city, bans renting entire homes when the host is not present, and limits guest access and occupancy. Platforms such as Airbnb must verify host registration before allowing bookings.

Enforcement began in September 2023 and led to a steep decline in active STR listings. Critics say the rules have severely reduced legal rental options, while supporters argue they are necessary to protect housing stock.

Airbnb’s response and broader political strategy

Airbnb expressed disappointment over the bill’s failure, stating that without reforms, New York City is unlikely to become more affordable for either residents or visitors. The company has argued that the current regulatory approach limits tourism options while doing little to address housing costs.

Beyond New York, Airbnb is also pursuing political efforts in other states. In October 2025, the company launched a tax-exempt political organization called the Airbnb Responsible Tourism Coalition, with an initial focus on Arizona.

The group aims to support or oppose state and local candidates based on their positions on short-term rental policies as local governments reconsider existing rules.

Photo by Patrick Tomasso on Unsplash