Airbnb's Impact on NYC: Affordable Housing and Boutique Hotels

A new study published in Real Estate Economics has found that banning short-term rentals, such as those offered by Airbnb, can lead to a decrease in long-term rents. The study examined the impact of Irvine, California's ban on short-term rentals in 2018 and found that within two years, long-term rents decreased by 3% on average. The researchers estimated that this reduction in rents amounted to a decrease of $80.7 million in annual total rental spending. The findings support previous research that has shown how short-term rentals can drive up rents and home prices, exacerbating the affordable housing crisis. While banning Airbnb alone may not solve the housing shortage, it can contribute to making housing more affordable by increasing the supply of long-term rentals and reducing competition for housing.