AirBnB: How New York managed to prevent Greece from imposing a cap

The government has rejected suggestions from agencies for planners on leasing days per year and is turning to temporary – mild – measures for “saturated” urban centers.

The count of short-term leases in Greece, as made by the Independent Authority for Public Revenue (AADE), paints a more realistic picture of the situation. This picture will be the map on which the government’s strategy for the housing problem will be developed.

Specifically, in a stock of properties reaching 10 million across the country, those rented out on short-term leases are estimated at around 100,000, i.e. properties obtained through the cross-referencing of the Tax Identification Number (TIN) and the Property Registration Number (PRN) registered on the major platforms. Of these 100,000 properties, most are leased by individuals rather than professionals (i.e. owners with more than two properties on short-term leases), and the duration of the lease in most cases does not exceed 90 days per year.

Add to this the “fail story” of New York City. One year after their enactment, New York’s unprecedented short-term rental regulations have failed to deliver on the promise of fighting the housing crisis. In the wake of the strict measures, consumers face historically high hotel rates, while residents are saddled with historically high rents.

New data highlights the implications of New York’s Law 18 (LL18), which is an exceptional case in terms of short-term rental regulations.

A more expensive destination for consumers

Since the new regulations began to be implemented, the results have been based on predictions, such as rising hotel prices, dashing the hopes of the average traveler for a trip to New York City.

According to CoStar data, average hotel rates in New York City increased 7.4% in 12 months, compared to only a 2.1% increase nationally.

Despite the expectations created by the law, rents are still rising, while vacancy rates remain stable.

Lawmakers claimed that Act LL18 would ensure affordable housing, but all indications since last year show that this approach has not produced the results promised by the law. Alicia Glenn, former New York City deputy mayor for housing under Mayor Bill de Blasio, went a step further, arguing that she has never seen data showing that short-term rentals are affecting the housing crisis in a significant way.

A year later, the data confirms the claim:

– Rents in New York City continue to rise: Lawmakers promised that banning Airbnb in New York would deregulate housing. Instead, rents rose 3.4% in the first 11 months of the law’s implementation, according to StreetEasy, suggesting that other factors are driving up rental prices. The average asking rental price in midtown Manhattan reached an all-time high of $5,000 for the first time.

– Apartment vacancies remain at the same levels: According to Apartment List, New York City apartment vacancy rates remain virtually unchanged (3.4%) since the law was implemented.

– New York City continues to work in reverse compared to other major cities: While rents may have “calmed down” nationally, in New York City, even after the law’s implementation, rent growth continues to outpace that of neighboring cities such as Boston, Chicago, and Washington. At the same time, New York City’s housing vacancy rates continue to lag significantly behind Chicago, Boston, and Washington, D.C.

“New York City’s short-term rental regulations have failed, disproportionately impacting communities outside of Manhattan, increasing travel costs and ultimately not resolving the housing crisis. Instead of making prices more affordable, the new regulations exclude everyday consumers while leaving erstwhile hosts struggling to make ends meet.” -Theodore Yedinsky, Vice President of Public Policy at Airbnb

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