Restrictions Keep NYC Short-Term Rentals Down 85%

Short-term rentals aren’t bouncing back three years after a restrictive law took effect in New York City. 

The city’s Office of Special Enforcement announced this week that 3,500 hosts had registered legal short-term rentals under Local Law 18 restrictions as of June 2026. That figure represents just 15 percent of the 23,000 listings that were active in the Big Apple on platforms like Airbnb and Vrbo before the law took effect in 2023.

The crackdown on short-term rentals was framed as a push to fight rising rents and keep homes on the market for New Yorkers, with city lawmakers quashing multiple attempts by Airbnb to make a comeback in the city.

Recently, Council Speaker Julie Menin rebuffed the homesharing giant’s bid to suspend restrictions during the World Cup, arguing that even a temporary rollback would undermine housing stability at a vulnerable moment for renters. Previous attempts at reviving the short-term rental industry by loosening restrictions were met with fierce opposition from the hotel industry, the Hotel and Gaming Trades Council and tenant advocate groups.

More than three-quarters of the new short-term rental hosts are homeowners, while less than a quarter are renters, with one- and two-family homes making up more than two-thirds of the legally registered units. The city noted that it had denied 65 applications for rent-regulated units to be used as short-term rentals, which is forbidden under Local Law 18, bringing the total number of affordable housing units protected by the law to 618.

Many applicants who couldn’t prove they were permanent occupants of their units were also denied and 60 percent of violations were issued in buildings with three or more units, according to the Office of Special Enforcement.

What we’re thinking about: Do you think that short-term rental restrictions have brought more housing back online since 2023 that otherwise would have ended up on Airbnb or Vrbo? What would an unrestricted industry in New York look like today? Let me know what you think at ben.miller@therealdeal.com.

A thing we’ve learned: Republican candidate for governor Bruce Blakeman sent fake pied-à-terre tax notice letters in a campaign stunt, attempting to woo voters and solicit their campaign contributions, using the same homeowner data he criticized Mamdani for releasing, City & State reported.

Elsewhere…

• New Jersey is making it easier for residents to embrace solar power with a bill signed by Gov. Mikie Sherrill on Tuesday. Gothamist reports the Garden State Balcony Solar Act allows homeowners to install “plug-in” solar panels, a more affordable and flexible alternative to hulking rooftop fixtures. 
• New York City public schools are banning children younger than high school age from using artificial intelligence. The guidelines are part of a slew of new rules announced by the city’s Department of Education, as reported by the New York Times, limiting technology use across elementary and middle schoolers. The rules, which ban chatbots across the board, bar teachers from using AI to grade and prevent individual screen use before third grade, will be in place for the upcoming school year. 
• Homeland Security Secretary Markwayne Mullin called curtains on “Operation Rotten Apple”, according to the City Reporter. The department’s immigration crackdown in New York resulted in the detention of 2,197 immigrants between July 27 and Aug. 29, but authorities declined to detail how many of those arrested had criminal records. 

Closing time

Residential: The most expensive residential sale recorded Wednesday was $7.5 million for a 3,600-square-foot co-op unit at 1120 5th Avenue on the Upper East Side. Mark Blumenfeld and Cornelia Eland with Compass had the listing. 

Commercial: The most expensive commercial transaction was $5 million for a 4,218-square-foot development site at 622 Ocean Avenue in Prospect Park South. Developer Shimshon Grunstein filed a new building permit for a 42,074-square-foot, 78-unit residential project on this property.  

New to the Market: The highest price for a residential property hitting the market is $13.5 million for a 3,534-square-foot condominium at 33 Park Row in the Financial District. Leonard Steinberg, Amy Mendizabal, Calli Sarkesh, Lois Planco with Compass have the listing. 

Breaking Ground: The largest new building filed was for a proposed 84,916-square-foot, 48-unit project at 862 Kent Avenue in Bedford-Stuyvesant. Joseph Frankl filed the permit on behalf of Joel Weiss of Heartfelt Townhouse Builders. 

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— Matthew Elo