Impact Assessment of NYC Local Law 18 on Airbnb Short-Term Rentals
Airbnb
HR&A conducted a comprehensive impact analysis for Airbnb, examining the effects of New York City’s Local Law 18, which effectively banned most short-term rentals in September 2023. Through pre- and post-enforcement data analysis, HR&A demonstrated that the law significantly reduced short-term rental income for homeowners who relied on Airbnb rentals, reduced the net new economic activity that many Airbnb guests brought to the outer boroughs, and reduced the availability of accommodations for tourists – already in short supply.
Local Law 18 represented one of the most restrictive short-term rental regulations in the nation, requiring detailed analysis to understand its impacts across New York City’s diverse neighborhoods. HR&A designed a rigorous analytical approach that combined Airbnb’s proprietary listing data and user surveys with third-party economic and housing data to measure changes in Airbnb host rental income, tourist spending patterns, and accommodation availability. HR&A quantified specific impacts across different boroughs and property types, revealing that the law’s effects diverged significantly from policy intentions.
HR&A’s analysis provided compelling evidence that Local Law 18 failed to improve housing affordability while imposing substantial loss of income on homeowners who had relied on short-term rental income and reducing economic benefits that visitors brought to outer borough communities. The study’s findings directly contributed to the New York City Council’s introduction of legislation to ease restrictions on small property owners, demonstrating how rigorous economic impact analysis can inform public debate and guide regulatory refinements to balance competing interests while supporting both local residents and the broader economy.
