In the fall of 2023, new regulations went into effect in New York City that dramatically restricted the operation of short-term rental services like Airbnb and Vrbo within the city's five boroughs. New York is far from the only city to crack down on such services, and there are a few reasons that have been cited for it. There's the argument that enabling apartments to be rented out by the likes of Airbnb cuts down on available housing stock; there's also been pushback from the hotel industry.

Just because these services have encountered legal pushback doesn't mean it's the end of the line for their ambitions in New York City and elsewhere. In November, Gothamist's David Brand reported that a new bill being considered by the New York City Council would allow some buildings to begin renting out rooms on short-term rental sites again. This would not entirely undo the previous measures, though -- instead, it would only apply to one- or two-family buildings.

Writing at Hellgate, Erin Durkin took a more in-depth look at the issue, while also noting that both supporters and opponents of Airbnb have substantial financial resources to draw on. Durkin points to a recently-founded organization called Tenants Not Tourists, whose website notes that it's backed by the Hotel Association of New York City and the Hotel Trades Council, a union for hospitality and gaming workers. Airbnb, meanwhile, is not exactly lacking in financial resources itself.

There are a few reasons there might be some appetite within New York City for a modification to the existing law. Durkin cites the increasing cost of hotels within NYC as one substantial factor at play here.

Given that there's a nationwide crisis in terms of building affordable housing, it's also easy to see how short-term rental companies can -- if left unchecked -- do more harm than good. It doesn't seem out of the question for policymakers to come up with a legal solution that makes it easier for people to rent out parts of their homes without leading to countless locals being priced out of their homes. But there are larger issues afoot here as well, and finding a viable solution could prove impossible.