New York City Short-Term Rental News: Why Local Law 18 is Still Messy in 2026

New York City Short-Term Rental News: Why Local Law 18 is Still Messy in 2026

It’s been a long road for anyone trying to book a weekend getaway in Brooklyn without paying five-star hotel prices. Honestly, the new york city short-term rental news lately feels like a tug-of-war where nobody is winning, except maybe the hotel lobby. If you've tried to find an Airbnb in Manhattan recently, you've probably noticed it's basically impossible unless you want to share a bunk bed with a stranger or book a stay for 31 days.

Local Law 18. That’s the culprit. Or the savior, depending on who you ask.

The 3,000-Unit Reality Check

The city just dropped some fresh data from the Office of Special Enforcement (OSE), and the numbers are honestly wild. Before the crackdown really hit its stride, New York was looking at roughly 38,000 active listings on Airbnb alone. Fast forward to early 2026, and we are down to just about 3,000 legally registered short-term rentals.

Think about that for a second. That is a 90% wipeout.

Mayor Eric Adams has been pretty vocal about why. With the city’s vacancy rate sitting at a measly 1.4%, the administration argues that every apartment used for tourists is one less home for a New Yorker. They even bragged recently about denying over 550 applications specifically because the units were rent-regulated. They aren't playing around. They've even started using "muscle" in the form of lawsuits, like the one filed in mid-2025 against an operator in the West Village called Incentra Village House. The city wants its housing back.

What Most People Get Wrong About the "Ban"

People call it a ban. It's not technically a ban, but it’s so restrictive it might as well be for most families. To host a stay under 30 days in NYC right now, you have to follow three brutal rules:

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  1. The host must be physically present in the unit.
  2. You can only have a maximum of two guests.
  3. The guest must have "unobstructed access" to the entire home (meaning no locks on bedroom doors).

Kinda weird, right? Most travelers don’t actually want to share a kitchen with a stranger while on vacation. And most hosts don't want a random person having full access to their private space. This "unlocked doors" provision is actually one of the biggest sticking points in the ongoing legal and political drama.

The Push for Intro 1107

Because the current laws are so stiff, there’s a new rebellion brewing in City Hall. There is a bill called Intro 1107—and if you’re looking for the most important new york city short-term rental news, this is it.

This proposal, backed by council members like Selvena Brooks-Powers, wants to loosen the leash. It’s basically a "common sense" amendment. It would allow homeowners in one- and two-family houses to rent out their places while they’re away, as long as they aren't some massive real estate corporation.

A recent poll from the Brooklyn Chamber of Commerce found that a staggering 78% of New Yorkers want the law revisited. Why? Because the "housing affordability" promise hasn't really panned out. Rents in Manhattan hit an all-time high of over $4,000 a month last year, even with all those Airbnbs gone.

Hotel Prices are Screaming

If you’re a traveler, you’ve felt the sting. In July 2025, the average nightly hotel rate in the city hit $283. That’s a significant jump from just a couple of years ago. Since the supply of short-term rentals evaporated, hotels have had a field day with pricing.

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It's a classic supply and demand problem. 68 million people are expected to visit the city this year, and they all need a place to sleep. Without the "pressure valve" of residential rentals, everyone is being squeezed into Midtown hotels that cost a month's car payment for a three-night stay.

The 2026 Enforcement Pipeline

So, what’s next? If you’re a host holding out hope, there are a few dates to circle on your calendar.

  • March 2025 saw the start of a new state-wide tax. Now, even the legal rentals have a $1.50 per-unit-per-day fee added on top of sales tax.
  • October 2026 is when the first round of registration renewals starts. This is going to be a "reckoning" for hosts who have been skirting the rules.
  • OSE Revocation Pilot: The city has already started a pilot program to revoke registrations of hosts who aren't actually living in the units they’ve registered.

Basically, the city has built an API that talks directly to Airbnb and VRBO. If you aren't in that database, the platform literally cannot process the payment. It’s a digital iron curtain.

Is It Worth Even Trying to Host?

Honestly? It’s tough. If you live in a building on the Prohibited Buildings List (PBL)—which now includes over 21,000 addresses—you’re dead in the water. These are buildings where the landlord or the condo board has told the city "no rentals allowed," and the OSE honors that instantly.

But if you own a small home in Queens or Staten Island and you're willing to stay in the spare room, you might be one of the lucky 40% whose applications actually get approved.

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How to Navigate the Current NYC Landscape

If you're still determined to engage with the NYC rental market, you need to play it smart. The days of "fly under the radar" are over.

For Hosts:

  • Check the PBL first. Don't even bother applying if your building is on the Prohibited Buildings List.
  • Prep for the "Presence" rule. If you're caught renting an "entire unit" while you're in Miami, the fines start at $1,000 and can escalate to $5,000 or more.
  • Watch Intro 1107. This is the only real hope for a return to "normal" hosting. Follow the City Hall sessions to see if the host-present requirement gets waived for homeowners.

For Travelers:

  • Look for "Class B" exemptions. Some buildings are legally classified as hotels or boarding houses and can offer short-term stays without the host-present rule. These are rare but legal.
  • The 31-day rule. If you can work remotely, booking for 31 days bypasses almost all of these regulations. Often, the monthly discount makes it cheaper than a two-week hotel stay anyway.
  • Verify the Registration Number. If a listing doesn't have a visible NYC registration number, it's probably going to get canceled by the platform 24 hours before you land. Don't risk it.

The reality of the new york city short-term rental news is that the "Wild West" is dead. The city has successfully turned the booking platforms into their own personal police force. Whether this actually makes the rent cheaper for a family in the Bronx remains the $4,000-a-month question.

Actionable Next Steps

  1. Download the OSE Dataset: If you’re a guest, check the city’s Open Data portal to see if a listing is actually registered before you send money.
  2. Contact Your Council Member: If you’re a homeowner feeling the pinch, the debate over Intro 1107 is happening right now in the Committee on Housing and Buildings.
  3. Audit Your Listing: If you're a registered host, ensure your listing photos don't show "locked" interior doors, as the OSE has been using listing photos as evidence for registration revocations in early 2026.