Airbnb Banned in New York: What Really Happened and Why It Matters Now

Airbnb Banned in New York: What Really Happened and Why It Matters Now

If you’ve tried to book a weekend getaway in Brooklyn lately, you’ve probably noticed something weird. The map is empty. Where there used to be thousands of cute brownstone apartments and "artist lofts" in Bushwick, there’s now... well, almost nothing.

Honestly, it feels like the platform just vanished overnight.

People keep saying Airbnb banned in New York, but that’s not technically the whole truth. It’s more like the city put the industry into a chokehold. It’s a "de facto" ban. You can still find listings, sure, but they look very different than they did two years ago.

The Law That Changed Everything

It all traces back to Local Law 18, also known as the Short-Term Rental Registration Law. It went into full effect in September 2023, and it basically blew up the way people travel to NYC.

Before this, the "Wild West" of rentals meant you could grab an entire apartment for yourself. Now? That’s basically illegal for any stay under 30 days.

The rules are incredibly strict:

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  • The host must be physically present in the unit.
  • You can’t have more than two guests at a time.
  • The host has to leave all doors inside the apartment unlocked so guests have "unobstructed access" to the whole place.
  • Hosts have to register with the Mayor’s Office of Special Enforcement (OSE).

If you’re thinking, "Who would actually want to stay in a stranger’s spare bedroom while they’re making coffee in the kitchen?"—you aren’t alone. Most travelers hated it. Most hosts hated it more.

The result? Listings plummeted. We’re talking about a drop from roughly 38,000 listings down to just a few thousand legal ones.

Did the "Ban" Actually Fix Housing?

The city’s big argument was that Airbnb was eating up apartments that should belong to New Yorkers. If you kick out the tourists, the logic went, rents will go down and more apartments will hit the market.

Except, it hasn't really worked out that way.

Data from 2025 and early 2026 shows that Manhattan rents are still hitting record highs—hovering around a median of $4,700. The vacancy rate is still stuck near all-time lows. It turns out that while 30,000 apartments sound like a lot, it’s a drop in the bucket for a city of 8 million.

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Instead of these units going back to long-term tenants, a lot of hosts just switched to "medium-term" rentals. They now only accept 30-day stays. That’s great for digital nomads or traveling nurses, but it does exactly zero to help a local family looking for a yearly lease.

The Hotel Industry is Winning Big

If you've noticed that a mediocre hotel in Long Island City now costs $400 a night, you can thank the new regulations.

Without the competition of thousands of Airbnbs, hotels have regained total control over the market. In late 2025, the average nightly rate for an NYC hotel hit over $280, with peak season prices regularly smashing past $400.

Hotel owners are thrilled. One prominent hotelier recently told the Wall Street Journal that the city would be in a "catastrophic situation" without these laws. But for families who used to rely on a $200-a-night two-bedroom Airbnb in Queens to visit grandma, the city has become basically unaffordable.

Is a Comeback Hitting the Horizon?

There is some drama brewing in the City Council right now. A new piece of legislation, Intro 1107, is trying to walk back the harshest parts of the law.

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The idea is to let people who own one- or two-family homes rent out their place while they’re away. It would also bump the guest limit from two people to four. Basically, it’s a "middle ground" for actual homeowners who aren't big-time real estate moguls but just want to pay their property taxes.

Airbnb is pouring millions into lobbying for this, especially with the 2026 World Cup looming. The city is expecting millions of visitors, and there literally aren't enough hotel rooms to put them all.

What This Means for You Right Now

If you are planning a trip to NYC in 2026, you need to change your strategy.

Don't expect to find a "steal" on Airbnb. Most of the stuff you see on the app now is either a 30-day minimum stay or a "hosted" experience where you're sharing a bathroom with a guy named Gary and his cat.

What you should do instead:

  1. Check the "Class B" List: Some buildings (like apartment hotels) are exempt from the law. They look like Airbnbs but are legally allowed to operate.
  2. Look at Jersey City or Hoboken: The PATH train takes 15 minutes to get to Manhattan, and the rental laws there are way more relaxed. You can still get an entire apartment for a decent price.
  3. Verify the Registration: If you do find a short-term NYC listing, look for the OSE registration number. If they don't have one, the city could shut it down while you're literally on the flight over, leaving you stranded.
  4. Watch the News for Intro 1107: If this bill passes, we could see thousands of listings flood back onto the market just in time for the summer.

The "Airbnb banned in New York" era has turned the city’s travel market upside down. While it’s been a win for neighbors who were tired of noisy "party houses," it’s been a massive blow to the "affordable" New York vacation. For now, the hotels have won, and the travelers are the ones footing the bill.

Actionable Next Steps:

  • If you’re booking a trip, prioritize hotels in the outer boroughs (Long Island City or Downtown Brooklyn) for better value than Manhattan.
  • Always filter for "Entire Home" and "30+ days" if you need a kitchen and privacy; otherwise, stick to reputable hotel brands to avoid last-minute cancellations due to enforcement sweeps.
  • Monitor the NYC Mayor's Office of Special Enforcement website for the "Prohibited Buildings List" before you book any apartment-style stay to ensure the building isn't flagged for illegal activity.