You’ve probably seen the headlines. People are saying the "Airbnb era" is over in Manhattan. Or that finding a place to stay that isn't a $400-a-night hotel in Midtown is basically impossible now. Honestly, it’s a bit more complicated than that, but the vibe on the street is definitely different. If you’re looking for short term rentals in New York City, you aren't just looking for a bed; you’re navigating a legal minefield that has reshaped the entire city's tourism landscape.
New York doesn't do things halfway.
In the last couple of years, the city basically nuked the old way of doing things. Local Law 18—the big one everyone talks about—changed the game. It isn't just a suggestion. It’s a hard-coded reality that has seen the number of active listings on major platforms plummet from over 38,000 to just about 3,000 verified, legal registrations according to recent data from the Office of Special Enforcement (OSE).
The Reality of Local Law 18
Most people think they can just book a cute brownstone in Brooklyn and have the place to themselves.
Nope.
If you are staying somewhere for less than 30 days, the law is incredibly specific. The permanent resident must be there. Like, physically living in the apartment with you. You’re essentially a roommate. And you can’t have more than two paying guests at a time. Also, you can’t lock your bedroom door from the outside. The city calls it a "common household" standard. It’s meant to feel like you're staying with a friend, not staying in a ghost hotel.
Why did they do this?
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Mayor Eric Adams and various housing advocates pointed to a 1.4% vacancy rate. They argued that every apartment being used as a full-time "illegal hotel" was a unit taken away from a New Yorker who actually needs a place to live. In September 2025, the OSE reported that they had denied over 4,300 applications that didn't meet the criteria, including over 550 units that were rent-regulated. They aren't messing around.
What is actually legal right now?
- Hosted Stays: The host is present, you have access to the whole unit, and there are only two of you.
- 30+ Day Rentals: Anything over 30 days is "long-term" and generally bypasses these specific registration rules (though other lease laws still apply).
- Class B Dwellings: These are legal hotels, boarding houses, and certain clubs. They are exempt because they were already built for "transient" use.
The 2026 Shift: New Bills and State Rules
Things are starting to shift again as we move through 2026.
There’s a lot of pushback from small homeowners—people who own a two-family house and just want to rent out the spare unit to pay their property taxes. Groups like RHOAR (Restore Homeowner Autonomy & Rights) have been screaming for months that they aren't the same as big corporate landlords.
Two major bills, Int 0948-2024 and Int 1107-2024, have been floating around the City Council. They want to allow owners of one- and two-family homes to rent their space without being present. They also want to bump the guest cap from two to four. It sounds reasonable to some, but it’s a political firestorm. Incoming leaders have already signaled they might block these changes to keep the housing stock protected.
The Statewide Registry
Don't forget the rest of the state.
As of late 2025 and moving into early 2026, New York State implemented its own registry. This was mostly about taxes. Now, there’s a $1.50 per-unit, per-day fee on all short term rentals in New York City that goes toward state coffers. Platforms like Airbnb and Vrbo are now the front-line enforcers. They have to verify a city registration number before they even let a listing go live.
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Where Can You Actually Stay?
If you're a traveler, this feels like a loss. You’ve probably noticed hotel prices in Long Island City and Downtown Brooklyn have gone through the roof because the competition is gone.
But there are workarounds that are actually legal.
Look for "Apart-hotels." These are buildings specifically zoned as Class B. They feel like an apartment—kitchenette, living room, the whole deal—but they have the legal permits to operate. Companies like Sonder or Mint House have units that stay on the right side of the law.
Also, the "30-day stay" is the new sweet spot. If you’re a digital nomad or just have a really long vacation, you can find incredible places that are perfectly legal because you’re staying for a month. Many hosts have switched their entire business model to these mid-term rentals.
Red Flags to Watch Out For
If you see a listing that says "Don't mention Airbnb to the doorman," run.
Seriously.
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If a host asks you to "check in" at a different address or tells you that the registration number on the site is "just a placeholder," you’re likely in an illegal rental. The city is using AI and data scraping to find these, and you could find your reservation canceled 24 hours before you land at JFK. Not a fun way to start a trip.
The Economic Ripple Effect
It's not just about where you sleep.
Local shops in residential areas of Queens and Brooklyn are feeling the pinch. Without that steady stream of tourists staying in neighborhood Airbnbs, the local coffee shops and bodegas are seeing fewer customers. It’s a trade-off. You get quieter residential streets and potentially more housing for locals, but you lose that "live like a local" vibe that fueled a lot of neighborhood economies.
What to Do Next
If you are planning a trip or trying to list a space, here is the move.
For travelers, always verify the registration number on the NYC OSE Open Data portal. It’s public. If the number on the listing doesn't match the database, it’s a risk. Stick to verified "hosted" stays if you want the authentic experience, or look into the Class B "apart-hotel" options for more privacy.
For hosts, the days of "flying under the radar" are over. If you aren't in a one- or two-family home and you aren't living there, you are better off looking into long-term tenants. The fines can hit $5,000 per violation, which usually wipes out any profit you made in a month.
Keep an eye on the City Council votes this spring. If Bill 1107 passes, we might see a small "renaissance" for homeowners in the outer boroughs, but for now, the city remains one of the strictest environments in the world for home sharing.
Check the official NYC Office of Special Enforcement website for the most recent Prohibited Buildings list before you sign any lease or book a stay, as over 21,000 buildings are currently banned from hosting any short-term guests whatsoever. This list is updated frequently and is your best defense against a canceled vacation or a massive fine.